80 FR 59215 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend FINRA Rule 8312 (FINRA BrokerCheck Disclosure) To Reduce the Waiting Period for the Release of Information Reported on Form U5
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 190 (October 1, 2015)
Federal Register Volume 80, Issue 190 (October 1, 2015)
| Page Range | 59215-59218 | |
| FR Document | 2015-24885 |
[Federal Register Volume 80, Number 190 (Thursday, October 1, 2015)] [Notices] [Pages 59215-59218] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-24885] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75988; File No. SR-FINRA-2015-032] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend FINRA Rule 8312 (FINRA BrokerCheck Disclosure) To Reduce the Waiting Period for the Release of Information Reported on Form U5 September 25, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on September 14, 2015, Financial Industry Regulatory Authority, Inc. (``FINRA'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by FINRA. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing to amend FINRA Rule 8312 (FINRA BrokerCheck Disclosure) to reduce the 15-day waiting period for the release of information reported on Form U5 (Uniform Termination Notice for Securities Industry Registration) through BrokerCheck[supreg]. The text of the proposed rule change is available on FINRA's Web site at http://www.finra.org, at the principal office of FINRA and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA included statements concerning the purpose of and basis for the [[Page 59216]] proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. FINRA has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose FINRA BrokerCheck provides the public with information on the professional background, business practices and conduct of FINRA member firms and their associated persons. The information that FINRA releases to the public through BrokerCheck is derived from the Central Registration Depository (``CRD[supreg]''), the securities industry online registration and licensing database. FINRA member firms, their associated persons and regulators report information to the CRD system via the uniform registration forms.\3\ By making most of this information publicly available, BrokerCheck, among other things, helps investors make informed choices about the individuals and firms with which they conduct business. --------------------------------------------------------------------------- \3\ FINRA discloses through BrokerCheck information that is reported on the following uniform registration forms: Form U4 (Uniform Application for Securities Industry Registration or Transfer), Form U5, Form U6 (Uniform Disciplinary Action Reporting Form), Form BD (Uniform Application for Broker-Dealer Registration), and Form BDW (Uniform Request for Broker-Dealer Withdrawal). --------------------------------------------------------------------------- Rule 8312 governs the information that FINRA releases to the public through BrokerCheck. Pursuant to this rule, most of the information that FINRA releases through BrokerCheck generally is made available the day after it is filed with the CRD system.\4\ Rule 8312, however, provides for a 15-day delay in the release of disclosure information filed on Form U5, which is used by firms to terminate registrations with self-regulatory organizations (``SROs'') and the states.\5\ The 15-day waiting period was established to give brokers on whose behalf the Form U5 was submitted an opportunity to comment on the disclosure event either through a Form U4, which is used by firms to register brokers with SROs and the states, or by submitting a Broker Comment directly to FINRA.\6\ --------------------------------------------------------------------------- \4\ BrokerCheck is periodically ``refreshed'' based on information filed with the CRD system on the uniform registration forms. Information filed with the CRD system on Monday through Thursday generally is released through BrokerCheck the following day. Information filed with the CRD system on Friday or Saturday generally is released through BrokerCheck on Sunday. The CRD system is not available for filings on Sunday. Information filed with the CRD system that contains details about a disclosure event may require additional processing time. See, e.g., infra note 7. \5\ Only disclosure information is subject to the 15-day waiting period. Other Form U5 information, such as the date of termination of a broker's registrations, is published in BrokerCheck in accordance with the protocols described earlier (see supra note 4). \6\ See Securities Exchange Act Release No. 55127 (January 18, 2007), 72 FR 3455 (January 25, 2007) (Order Approving File No. SR- NASD-2003-168). --------------------------------------------------------------------------- FINRA is concerned that the length of the current waiting period may provide, for an extended period of time, an incomplete picture of a broker's disclosure history if an investor reviews a broker's BrokerCheck report during the waiting period. Under those circumstances, an investor, without knowing about a potentially significant disclosure event that has been reported to the CRD system, may determine to conduct business with a formerly registered person who, although no longer in the securities industry in a registered capacity, may work in another investment-related industry or may have attained another position of trust with potential investors. Moreover, FINRA's concerns regarding the length of the current waiting period remain even if a broker moves to a new firm and files a Form U4 to report the disclosure event that occurred when the broker was registered at his or her prior firm. In such cases, the broker may not be aware of all the facts and circumstances involving the disclosure event and may therefore provide only limited details about the event. In addition, some brokers may attempt to intentionally reframe the circumstances surrounding the event to put it in a light that is most favorable to the broker. In either case, investors have access only to the details reported by the broker on the Form U4 if it is processed by FINRA staff prior to the filing of the Form U5 or during the current 15-day waiting period. To address these concerns, FINRA is proposing to reduce the waiting period for the release of disclosure information reported on Form U5 (other than internal review disclosure information) from 15 days to three business days following the processing \7\ of such information by FINRA.\8\ FINRA believes that a three-business-day waiting period is more reasonable than a 15-day period because it allows investors to more quickly access disclosure information reported on Form U5 while at the same time still providing brokers with the opportunity to comment on the reported disclosure event. --------------------------------------------------------------------------- \7\ For purposes of this rule, a Form U5 will be considered processed once the Disclosure Reporting Page, which contains the details about a disclosure event, has been reviewed by FINRA staff. Most Forms U5 that contain disclosure information are processed within two days of being filed with the CRD system. \8\ For example, if disclosure information on Form U5 is processed on Monday, FINRA would release that information via BrokerCheck on Thursday. --------------------------------------------------------------------------- In addition to reducing the length of the waiting period to three business days, FINRA is proposing that the waiting period potentially be curtailed if a broker reports on Form U4 the disclosure event that the broker's prior firm reported on Form U5 prior to the expiration of the waiting period. For example, if FINRA processes a disclosure event reported on Form U5 on Monday, and on Tuesday processes a Form U4 filed by a broker reporting that event, the Form U5 information would be made publicly available in BrokerCheck on Wednesday, which is the same day that the Form U4 information would be released. In such circumstances, the broker has had a chance to comment on the disclosure event that has been reported by the firm on Form U5, so continuing to exclude the Form U5 version of the event from BrokerCheck does not serve any purpose.\9\ Furthermore, releasing the Form U5 information at the same time as the Form U4 information helps investors by reducing the uncertainty regarding the reason for a broker's termination from a firm when the broker remains in the industry after leaving his or her old firm. --------------------------------------------------------------------------- \9\ If a disclosure event is reported on Form U4 before the same event is reported on Form U5, the waiting period will still apply since the broker will not have had the opportunity to review and comment on the information provided by the firm on Form U5. --------------------------------------------------------------------------- If the Commission approves the proposed rule change, FINRA will announce the implementation date of the proposed rule change in a Regulatory Notice to be published no later than 60 days following Commission approval. The implementation date will be no later than 180 days following publication of the Regulatory Notice announcing Commission approval.\10\ --------------------------------------------------------------------------- \10\ The implementation of the proposed rule change will require programming changes to the CRD system, including changing the waiting period to business days from calendar days and allowing for the potential curtailment of the waiting period. --------------------------------------------------------------------------- 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,\11\ which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative [[Page 59217]] acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. The proposed rule change to reduce the waiting period for the release of Form U5 information through BrokerCheck will enhance investor protection, because it will allow investors to more quickly access disclosure information reported on Form U5 and also limit the time period during which an incomplete picture of a broker's disclosure history may be displayed in BrokerCheck. The proposed rule change will help investors better determine whether to conduct business with registered persons who have changed firms, as well as formerly registered persons who, although no longer in the securities industry in a registered capacity, may work in another investment-related industry or may have attained another position of trust with potential investors. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78o-3(b)(6). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Economic Impact Assessment A. Need for the Rule As discussed above, FINRA is concerned that the length of the current waiting period for the release of disclosure information filed on Form U5 may provide, for an extended period of time, an incomplete picture of a broker's disclosure history if an investor reviews a broker's BrokerCheck report during the waiting period. Moreover, if a broker moves to a new firm and files a Form U4 to report the disclosure event that the broker's prior firm reported on Form U5 prior to the expiration of the waiting period, investors could have access only to the details reported by the broker on the Form U4 which may be potentially limited or misleading. B. Regulatory Objective The proposed reduction in the waiting period for the release of disclosure information reported on Form U5 aims to allow investors to access important information more quickly while still providing brokers with the opportunity to comment on the reported disclosure event. In addition, FINRA is proposing the simultaneous release of Form U5 and Form U4 information in the case where FINRA processes a Form U4 that reports a disclosure event that a broker's prior firm reported on Form U5 prior to the expiration of the waiting period. The proposed simultaneous release would prevent brokers from accidentally or intentionally releasing incomplete information regarding a disclosure event to the public. C. Economic Baseline The current regulatory environment serves as a baseline for the proposed rule change. Specifically, Rule 8312 provides for a 15-day delay in the release of Form U5 disclosure information to the public through BrokerCheck. Investors reviewing a broker's BrokerCheck report during the waiting period may not be able to obtain a complete picture of the broker's disclosure history. Brokers on whose behalf a Form U5 was submitted may comment on the disclosure event either through a Form U4 or by submitting a Broker Comment directly to FINRA. Form U4 is used by firms to register brokers with SROs and the states, and thus brokers who remain in the securities industry in a registered capacity have a Form U4 filing requirement. In the cases where a Form U4 was filed prior to the filing of a Form U5 or during the current 15-day waiting period, investors may have access only to the details about the disclosure event reported by the broker on the Form U4 for an extended period of time. D. Economic Impacts The proposed rule change to reduce the waiting period for the release of Form U5 information through BrokerCheck will enhance investor protection, because it will allow investors to more quickly access disclosure information reported on Form U5 and also limit the time period during which an incomplete picture of a broker's disclosure history may be displayed in BrokerCheck. Therefore, the rule change will benefit investors by allowing them to make better informed decisions about the individuals with whom they conduct business and, in turn, potentially to have greater trust in the markets. FINRA does not anticipate that the proposed rule change will impose any burden or additional economic costs on member firms. In this regard, FINRA notes that the proposed rule change will not subject member firms to any new or additional uniform registration form reporting requirements. The Form U5 questions that elicit disclosure information will remain the same as will the timing of filing requirements; only the waiting period for the inclusion of the disclosure information in BrokerCheck will change. FINRA anticipates that the proposed rule change may impose only a limited burden or additional economic costs on associated persons. As previously mentioned, the proposed rule change will not result in any new or additional uniform registration form reporting requirements. In addition, associated persons will continue to have the opportunity to comment on any disclosure event reported on Form U5. Under the FINRA By-Laws, a firm must provide a terminated broker with a copy of a Form U5 concurrently with the firm filing it with the CRD system.\12\ Furthermore, if a broker has moved to a new firm before their prior firm has filed a Form U5, the broker's new firm receives notice of the Form U5 filing when it is made with the CRD system. As a result, FINRA believes that the proposed three-business-day waiting period generally will provide brokers with sufficient time to comment on the reported disclosure event. To the extent that some registered brokers may find the proposed three-business-day waiting period insufficient to comment fully on the disclosure event, they have the option to file a Form U4 amendment within three days of the Form U5 filing to indicate that additional information regarding the facts and circumstances involving the disclosure event will be reported in a forthcoming Form U4 amendment. The additional cost to the broker would include time and effort to file the first U4 amendment and an additional disclosure review fee of $110. --------------------------------------------------------------------------- \12\ See FINRA By-Laws Article V, Section 3(a). --------------------------------------------------------------------------- FINRA also anticipates that the proposed rule change may impose only a limited burden on associated persons because FINRA believes that the proposal will affect only a small percentage of those individuals who have a disclosure event reported on Form U5. FINRA reviewed all 5,654 disclosure events that were reported on Form U5 in 2014 and found that approximately 9.7 percent of Form U4 filings reporting such disclosure events were made between 4 and 15 days after the Form U5 had been filed and that no Broker Comments were submitted to FINRA during that timeframe. Thus, in 2014 the proposed rule change would have likely had no impact on those individuals for whom more than 90 percent of the Forms U5 were filed that included a disclosure event.\13\ Furthermore, the percentage of individuals potentially impacted by the proposed rule change may be even less [[Page 59218]] than the figure cited above because some individuals may have had the ability to file a Form U4 within three days of the Form U5 being filed but chose not to do so.\14\ --------------------------------------------------------------------------- \13\ Such individuals include those who filed a Form U4 or Broker Comment prior to or within three days of the filing of the Form U5, more than 15 days after the Form U5 was filed, and never filed a Form U4 or Broker Comment. \14\ During its review, FINRA was unable to determine the reason why individuals made their Form U4 filings between 4 and 15 days after the filing of the Form U5 and therefore FINRA cannot reliably estimate how many individuals may have had the ability to file a Form U4 within three days of the Form U5 being filed. FINRA further notes that the waiting period under the current rule is based on calendar days following the filing of the Form U5 while the waiting period under the proposed rule change is based on business days after FINRA processes the Form U5. --------------------------------------------------------------------------- FINRA further notes that the proposed rule change will not impact the number of options brokers have to address their concerns regarding a disclosure event that has been reported on Form U5. As previously mentioned, a broker can respond via a Form U4 or a Broker Comment.\15\ Moreover, a broker also may file a complaint with FINRA if they believe that a firm has filed false or misleading information on Form U5. Brokers now also have the ability to dispute the accuracy of (or update) a reported disclosure event.\16\ --------------------------------------------------------------------------- \15\ FINRA has improved the display of Broker Comments in the last few years by placing the comment next to the corresponding disclosure in BrokerCheck rather than at the top of the first page of an individual's BrokerCheck report. \16\ See Rule 8312(e). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: A. By order approve or disapprove such proposed rule change, or B. institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-FINRA-2015-032 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-FINRA-2015-032. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of FINRA. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-FINRA-2015-032 and should be submitted on or before October 22, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-24885 Filed 9-30-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 190 / Thursday, October 1, 2015 / Notices 59215
C. Self-Regulatory Organization’s investors, or otherwise in furtherance of submitted on or before October 22,
Statement on Comments on the the purposes of the Act. If the 2015.
Proposed Rule Change Received From Commission takes such action, the For the Commission, by the Division of
Members, Participants, or Others Commission shall institute proceedings Trading and Markets, pursuant to delegated
No written comments were solicited to determine whether the proposed rule authority.16
or received with respect to the proposed should be approved or disapproved. Robert W. Errett,
rule change. IV. Solicitation of Comments Deputy Secretary.
[FR Doc. 2015–24882 Filed 9–30–15; 8:45 am]
III. Date of Effectiveness of the Interested persons are invited to
BILLING CODE 8011–01–P
Proposed Rule Change and Timing for submit written data, views, and
Commission Action arguments concerning the foregoing,
Because the proposed rule change including whether the proposed rule SECURITIES AND EXCHANGE
does not (i) significantly affect the change is consistent with the Act. COMMISSION
protection of investors or the public Comments may be submitted by any of
interest; (ii) impose any significant the following methods: [Release No. 34–75988; File No. SR–FINRA–
2015–032]
burden on competition; and (iii) become Electronic Comments
operative for 30 days from the date on Self-Regulatory Organizations;
which it was filed, or such shorter time • Use the Commission’s Internet
Financial Industry Regulatory
as the Commission may designate, the comment form (http://www.sec.gov/
Authority, Inc.; Notice of Filing of a
proposed rule change has become rules/sro.shtml); or
Proposed Rule Change To Amend
effective pursuant to Section 19(b)(3)(A) • Send an email to rule-comments@ FINRA Rule 8312 (FINRA BrokerCheck
of the Act and Rule 19b–4(f)(6) sec.gov. Please include File Number SR– Disclosure) To Reduce the Waiting
thereunder.14 NYSEMKT–2015–71 on the subject line. Period for the Release of Information
A proposed rule change filed Reported on Form U5
Paper Comments
pursuant to Rule 19b–4(f)(6) under the
Act normally does not become operative • Send paper comments in triplicate September 25, 2015.
for 30 days after the date of its filing. to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) of the
However, Rule 19b–4(f)(6)(iii) permits and Exchange Commission, 100 F Street Securities Exchange Act of 1934
the Commission to designate a shorter NE., Washington, DC 20549–1090. (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
time if such action is consistent with the All submissions should refer to File notice is hereby given that on
protection of investors and the public Number SR–NYSEMKT–2015–71. This September 14, 2015, Financial Industry
interest. The Exchange has asked the file number should be included on the Regulatory Authority, Inc. (‘‘FINRA’’)
Commission to waive the 30-day subject line if email is used. To help the filed with the Securities and Exchange
operative delay so that the proposal may Commission process and review your Commission (‘‘SEC’’ or ‘‘Commission’’)
become operative immediately upon comments more efficiently, please use the proposed rule change as described
filing. The Commission believes that only one method. The Commission will in Items I and II below, which Items
waiver of the 30-day operative delay is post all comments on the Commission’s have been prepared by FINRA. The
appropriate because the Certificate of Internet Web site (http://www.sec.gov/ Commission is publishing this notice to
Incorporation of NYSE Market (DE) and rules/sro.shtml). Copies of the solicit comments on the proposed rule
the NYSE LLC Operating Agreement submission, all subsequent change from interested persons.
will become ‘‘rules of the exchange’’ of amendments, all written statements
NYSE MKT without delay. Based on the I. Self-Regulatory Organization’s
with respect to the proposed rule Statement of the Terms of Substance of
foregoing, the Commission believes that change that are filed with the
the waiver of the operative delay is the Proposed Rule Change
Commission, and all written
consistent with the protection of communications relating to the FINRA is proposing to amend FINRA
investors and the public interest.15 The proposed rule change between the Rule 8312 (FINRA BrokerCheck
Commission hereby grants the waiver Commission and any person, other than Disclosure) to reduce the 15-day waiting
and designates the proposal operative those that may be withheld from the period for the release of information
upon filing. public in accordance with the reported on Form U5 (Uniform
At any time within 60 days of the provisions of 5 U.S.C. 552, will be Termination Notice for Securities
filing of the proposed rule change, the available for Web site viewing and Industry Registration) through
Commission summarily may printing in the Commission’s Public BrokerCheck®.
temporarily suspend such rule change if Reference Room, 100 F Street NE., The text of the proposed rule change
it appears to the Commission that such Washington, DC 20549–1090, on official is available on FINRA’s Web site at
action is necessary or appropriate in the business days between the hours of http://www.finra.org, at the principal
public interest, for the protection of 10:00 a.m. and 3:00 p.m. Copies of the office of FINRA and at the
filing will also be available for Commission’s Public Reference Room.
14 In addition, Rule 19b–4(f)(6)(iii) requires the
inspection and copying at the NYSE’s II. Self-Regulatory Organization’s
Exchange to give the Commission written notice of
the Exchange’s intent to file the proposed rule principal office and on its Internet Web Statement of the Purpose of, and
change, along with a brief description and text of site at www.nyse.com. All comments Statutory Basis for, the Proposed Rule
mstockstill on DSK4VPTVN1PROD with NOTICES6
the proposed rule change, at least five business days received will be posted without change; Change
prior to the date of filing of the proposed rule the Commission does not edit personal
change, or such shorter time as designated by the In its filing with the Commission,
Commission. The Exchange has satisfied this identifying information from
FINRA included statements concerning
requirement. submissions. You should submit only
the purpose of and basis for the
15 For purposes only of waiving the 30-day information that you wish to make
operative delay, the Commission has also available publicly. All submissions 16 17 CFR 200.30–3(a)(12).
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
should refer to File Number SR– 1 15 U.S.C. 78s(b)(1).
15 U.S.C. 78c(f). NYSEMKT–2015–71 and should be 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 21:04 Sep 30, 2015 Jkt 238001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 E:\FR\FM\01OCN1.SGM 01OCN1](https://thefederalregister.org/doc/80_FR_59405/page/1.svg)
![59218 Federal Register / Vol. 80, No. 190 / Thursday, October 1, 2015 / Notices
than the figure cited above because Electronic Comments SMALL BUSINESS ADMINISTRATION
some individuals may have had the
ability to file a Form U4 within three • Use the Commission’s Internet Revocation of License of Small
days of the Form U5 being filed but comment form (http://www.sec.gov/ Business Investment Company
chose not to do so.14 rules/sro.shtml); or
FINRA further notes that the proposed • Send an email to rule-comments@ Pursuant to the authority granted to
rule change will not impact the number sec.gov. Please include File Number SR– the United States Small Business
of options brokers have to address their FINRA–2015–032 on the subject line. Administration by the Wind-Up Order
concerns regarding a disclosure event of the United States District Court for
that has been reported on Form U5. As Paper Comments the Southern District of Texas, entered
previously mentioned, a broker can May 21, 2014, the United States Small
• Send paper comments in triplicate
respond via a Form U4 or a Broker Business Administration hereby revokes
Comment.15 Moreover, a broker also to Secretary, Securities and Exchange
Commission, 100 F Street NE., the license of Sundance Venture
may file a complaint with FINRA if they Partners, L.P., a Delaware Limited
believe that a firm has filed false or Washington, DC 20549–1090.
Partnership, to function as a small
misleading information on Form U5. All submissions should refer to File business investment company under the
Brokers now also have the ability to Number SR–FINRA–2015–032. This file Small Business Investment Company
dispute the accuracy of (or update) a number should be included on the License No. 08/78–0169 issued to
reported disclosure event.16 subject line if email is used. To help the Roaring Fork Capital, SBIC, L.P., on
C. Self-Regulatory Organization’s Commission process and review your April 23, 1990, and said license is
Statement on Comments on the comments more efficiently, please use hereby declared null and void as of May
Proposed Rule Change Received From only one method. The Commission will 21, 2014.
Members, Participants or Others post all comments on the Commission’s
United States Small Business
Written comments were neither Internet Web site (http://www.sec.gov/
Administration.
solicited nor received. rules/sro.shtml). Copies of the
Dated: September 21, 2015.
submission, all subsequent
III. Date of Effectiveness of the amendments, all written statements Javier E. Saade,
Proposed Rule Change and Timing for with respect to the proposed rule Associate Administrator for Investment.
Commission Action change that are filed with the [FR Doc. 2015–24981 Filed 9–30–15; 8:45 am]
Within 45 days of the date of Commission, and all written BILLING CODE 8025–01–P
publication of this notice in the Federal communications relating to the
Register or within such longer period proposed rule change between the
up to 90 days (i) as the Commission may Commission and any person, other than SMALL BUSINESS ADMINISTRATION
designate if it finds such longer period those that may be withheld from the
to be appropriate and publishes its public in accordance with the Interest Rates
reasons for so finding or (ii) as to which provisions of 5 U.S.C. 552, will be
the self-regulatory organization The Small Business Administration
available for Web site viewing and
consents, the Commission will: publishes an interest rate called the
printing in the Commission’s Public
A. By order approve or disapprove optional ‘‘peg’’ rate (13 CFR 120.214) on
Reference Room, 100 F Street NE.,
such proposed rule change, or a quarterly basis. This rate is a weighted
Washington, DC 20549, on official
B. institute proceedings to determine average cost of money to the
whether the proposed rule change business days between the hours of
government for maturities similar to the
should be disapproved. 10:00 a.m. and 3:00 p.m. Copies of the
average SBA direct loan. This rate may
filing also will be available for
IV. Solicitation of Comments be used as a base rate for guaranteed
inspection and copying at the principal
fluctuating interest rate SBA loans. This
Interested persons are invited to office of FINRA. All comments received
rate will be 2.50 (21⁄2) percent for the
submit written data, views, and will be posted without change; the
October–December quarter of FY 2016.
arguments concerning the foregoing, Commission does not edit personal
including whether the proposed rule identifying information from Pursuant to 13 CFR 120.921(b), the
change is consistent with the Act. submissions. You should submit only maximum legal interest rate for any
Comments may be submitted by any of information that you wish to make third party lender’s commercial loan
the following methods: available publicly. All submissions which funds any portion of the cost of
should refer to File Number SR–FINRA– a 504 project (see 13 CFR 120.801) shall
14 During its review, FINRA was unable to
2015–032 and should be submitted on be 6% over the New York Prime rate or,
determine the reason why individuals made their if that exceeds the maximum interest
Form U4 filings between 4 and 15 days after the or before October 22, 2015.
filing of the Form U5 and therefore FINRA cannot rate permitted by the constitution or
For the Commission, by the Division of
reliably estimate how many individuals may have laws of a given State, the maximum
had the ability to file a Form U4 within three days
Trading and Markets, pursuant to delegated
authority.17
interest rate will be the rate permitted
of the Form U5 being filed. FINRA further notes
that the waiting period under the current rule is
by the constitution or laws of the given
Robert W. Errett,
State.
mstockstill on DSK4VPTVN1PROD with NOTICES6
based on calendar days following the filing of the
Form U5 while the waiting period under the Deputy Secretary.
proposed rule change is based on business days [FR Doc. 2015–24885 Filed 9–30–15; 8:45 am] John M. Wade,
after FINRA processes the Form U5. Acting Director, Office of Financial
15 FINRA has improved the display of Broker
BILLING CODE 8011–01–P
Assistance.
Comments in the last few years by placing the
comment next to the corresponding disclosure in [FR Doc. 2015–24991 Filed 9–30–15; 8:45 am]
BrokerCheck rather than at the top of the first page BILLING CODE P
of an individual’s BrokerCheck report.
16 See Rule 8312(e). 17 17 CFR 200.30–3(a)(12).
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Document Created: 2015-12-15 08:40:25
Document Modified: 2015-12-15 08:40:25
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 59215 |
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