81_FR_42140 81 FR 42016 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt NASD Rule 2830 as FINRA Rule 2341 (Investment Company Securities) in the Consolidated FINRA Rulebook

81 FR 42016 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt NASD Rule 2830 as FINRA Rule 2341 (Investment Company Securities) in the Consolidated FINRA Rulebook

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 124 (June 28, 2016)

Page Range42016-42017
FR Document2016-15178

Federal Register, Volume 81 Issue 124 (Tuesday, June 28, 2016)
[Federal Register Volume 81, Number 124 (Tuesday, June 28, 2016)]
[Notices]
[Pages 42016-42017]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15178]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78130; File No. SR-FINRA-2016-019]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Adopt NASD Rule 2830 as FINRA Rule 2341 
(Investment Company Securities) in the Consolidated FINRA Rulebook

June 22, 2016.
    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 June 9, 2016, 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, 
II, and III below, which Items have been prepared by FINRA. FINRA has 
designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under 
the Act,\3\ which renders the proposal effective upon receipt of this 
filing by the Commission. 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.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    FINRA is proposing to adopt NASD Rule 2830 (Investment Company 
Securities) as FINRA Rule 2341 (Investment Company Securities) in the 
consolidated FINRA rulebook without any substantive changes. FINRA also 
proposes to update cross-references within other FINRA rules 
accordingly.
    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 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
    As part of the process of developing a new consolidated rulebook 
(``Consolidated FINRA Rulebook''),\4\ FINRA is proposing to transfer 
NASD Rule 2830 (Investment Company Securities) into the Consolidated 
FINRA Rulebook as FINRA Rule 2341 (Investment Company Securities) 
without any substantive changes. NASD Rule 2830 regulates members' 
activities in connection with the sale and distribution of securities 
of companies registered under the Investment Company Act of 1940 
(``investment company securities'').\5\ In connection with the 
distribution and sale of investment company securities, NASD Rule 2830 
limits the sales charges members may receive, prohibits directed 
brokerages arrangements, limits the payment and receipt of cash and 
non-cash compensation, sets conditions on discounts to dealers, and 
addresses other issues such as members' purchases and sales of 
investment company securities as principal.
---------------------------------------------------------------------------

    \4\ The current FINRA rulebook consists of: (1) FINRA Rules; (2) 
NASD Rules; and (3) rules incorporated from New York Stock Exchange 
LLC (``NYSE'') (``Incorporated NYSE Rules'') (together, the NASD 
Rules and Incorporated NYSE Rules are referred to as the 
``Transitional Rulebook''). While the NASD Rules generally apply to 
all FINRA members, the Incorporated NYSE Rules apply only to those 
members of FINRA that are also members of the NYSE (``Dual 
Members''). The FINRA Rules apply to all FINRA members, unless such 
rules have a more limited application by their terms. For more 
information about the rulebook consolidation process, see 
Information Notice, March 12, 2008 (Rulebook Consolidation Process).
    \5\ As with NASD Rule 2830, FINRA Rule 2341 would not regulate 
members' activities in connection with variable insurance contracts, 
which are regulated by FINRA Rule 2320 (Variable Contracts of an 
Insurance Company).
---------------------------------------------------------------------------

    Proposed FINRA Rule 2341 closely tracks the language of NASD Rule 
2830 and makes only non-substantive, technical changes to the text of 
the NASD rule by, for instance, replacing the reference to a legacy 
NASD rule with the applicable FINRA rule and making other non-
substantive, technical conforming changes.\6\
---------------------------------------------------------------------------

    \6\ FINRA previously solicited comment on a proposal to move 
NASD Rule 2830 to the Consolidated FINRA Rulebook with substantive 
changes. See Regulatory Notice 09-34 (June 2009); see also 
Securities Exchange Act Release No. 64386 May 3, 2011), 76 FR 26779 
(May 9, 2011) (Notice of Filing File No. SR-FINRA-2011-018) 
(withdrawn on August 1, 2011). Given that FINRA would like to 
proceed with the rulebook consolidation process expeditiously to 
provide greater clarity and regulatory efficiency to FINRA members, 
FINRA is proposing to move NASD Rule 2830 to the Consolidated FINRA 
Rulebook without substantive changes at this time, but FINRA may 
consider proposing substantive changes to the rule as part of future 
rulemaking.

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[[Page 42017]]

    In addition, the proposed rule change makes technical changes to 
paragraph (b)(10) of NASD Rule 2830. Paragraph (b)(10) of NASD Rule 
2830 incorporates by reference several definitions under the Investment 
Company Act, including ``open-end management investment company.'' 
However, the Investment Company Act does not define the term ``open-end 
management investment company,'' but defines ``management company,'' 
and divides this term into two sub-classifications, ``open-end 
company'' and ``closed-end company.'' \7\ Accordingly, paragraph 
(b)(10) of proposed FINRA Rule 2341 would incorporate the definitions 
of ``open-end company'' and ``closed-end company'' from the Investment 
Company Act, rather than ``open-end management investment company.'' 
The proposed rule change would then replace references to the terms 
``open-end management investment company,'' ``open-end investment 
company,'' and ``open-end management company'' in NASD Rule 2830(c), 
(d), (g), (h), (i) and (j) with references to ``open-end company.'' 
Similarly, the proposed rule change would replace references to the 
term ``closed-end investment company'' in NASD Rule 2830(d) and (j) 
with a reference to ``closed-end company.'' These proposed changes 
would correct these references in the NASD rule for the purposes of 
adopting it as a FINRA rule, without changing the substantive meaning. 
FINRA has filed the proposed rule change for immediate effectiveness. 
The implementation date will be 30 days after the date of the filing.
---------------------------------------------------------------------------

    \7\ See Sections 4(3) and 5(a) of the Investment Company Act.
---------------------------------------------------------------------------

2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\8\ which requires, among 
other things, that FINRA rules must be designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, and, in general, to protect investors and the 
public interest. FINRA believes that the proposed rule change, which 
does not substantively change the rule, is consistent with the Act 
because it is being undertaken pursuant to the rulebook consolidation 
process, which is designed to provide additional clarity and regulatory 
efficiency to FINRA members by consolidating the applicable NASD, 
Incorporated NYSE, and FINRA rules into one rule set.
---------------------------------------------------------------------------

    \8\ 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. As noted above, the proposed 
rule change will not substantively change either the text or 
application of the rule. FINRA would like to proceed with the rulebook 
consolidation process expeditiously, which is believed will provide 
additional clarity and regulatory efficiency to members.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or 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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-FINRA-2016-019 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-2016-019. 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 
a.m. and 3 p.m. Copies of such 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-2016-019 and should be 
submitted on or before July 19, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-15178 Filed 6-27-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                    42016                            Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Notices

                                                    Paper Comments                                            SECURITIES AND EXCHANGE                                 summaries, set forth in sections A, B,
                                                                                                              COMMISSION                                              and C below, of the most significant
                                                      • Send paper comments in triplicate                                                                             aspects of such statements.
                                                    to Secretary, Securities and Exchange                     [Release No. 34–78130; File No. SR–FINRA–
                                                    Commission, 100 F Street NE.,                             2016–019]                                               A. Self-Regulatory Organization’s
                                                    Washington, DC 20549–1090.                                                                                        Statement of the Purpose of, and
                                                                                                              Self-Regulatory Organizations;                          Statutory Basis for, the Proposed Rule
                                                    All submissions should refer to File                      Financial Industry Regulatory                           Change
                                                    Number SR BatsBYX–2016–12. This file                      Authority, Inc.; Notice of Filing and
                                                                                                              Immediate Effectiveness of a Proposed                   1. Purpose
                                                    number should be included on the
                                                    subject line if email is used. To help the                Rule Change To Adopt NASD Rule                             As part of the process of developing
                                                    Commission process and review your                        2830 as FINRA Rule 2341 (Investment                     a new consolidated rulebook
                                                    comments more efficiently, please use                     Company Securities) in the                              (‘‘Consolidated FINRA Rulebook’’),4
                                                    only one method. The Commission will                      Consolidated FINRA Rulebook                             FINRA is proposing to transfer NASD
                                                                                                                                                                      Rule 2830 (Investment Company
                                                    post all comments on the Commission’s                     June 22, 2016.                                          Securities) into the Consolidated FINRA
                                                    Internet Web site (http://www.sec.gov/                       Pursuant to Section 19(b)(1) of the                  Rulebook as FINRA Rule 2341
                                                    rules/sro.shtml). Copies of the                           Securities Exchange Act of 1934                         (Investment Company Securities)
                                                    submission, all subsequent                                (‘‘Act’’) 1 and Rule 19b–4 thereunder,2                 without any substantive changes. NASD
                                                    amendments, all written statements                        notice is hereby given that on June 9,                  Rule 2830 regulates members’ activities
                                                    with respect to the proposed rule                         2016, Financial Industry Regulatory                     in connection with the sale and
                                                    change that are filed with the                            Authority, Inc. (‘‘FINRA’’) filed with the              distribution of securities of companies
                                                    Commission, and all written                               Securities and Exchange Commission                      registered under the Investment
                                                    communications relating to the                            (‘‘SEC’’ or ‘‘Commission’’) the proposed                Company Act of 1940 (‘‘investment
                                                    proposed rule change between the                          rule change as described in Items I, II,                company securities’’).5 In connection
                                                    Commission and any person, other than                     and III below, which Items have been                    with the distribution and sale of
                                                    those that may be withheld from the                       prepared by FINRA. FINRA has                            investment company securities, NASD
                                                    public in accordance with the                             designated the proposed rule change as                  Rule 2830 limits the sales charges
                                                    provisions of 5 U.S.C. 552, will be                       constituting a ‘‘non-controversial’’ rule               members may receive, prohibits
                                                    available for Web site viewing and                        change under paragraph (f)(6) of Rule                   directed brokerages arrangements, limits
                                                    printing in the Commission’s Public                       19b–4 under the Act,3 which renders                     the payment and receipt of cash and
                                                    Reference Room, 100 F Street NE.,                         the proposal effective upon receipt of                  non-cash compensation, sets conditions
                                                                                                              this filing by the Commission. The                      on discounts to dealers, and addresses
                                                    Washington, DC 20549, on official
                                                                                                              Commission is publishing this notice to                 other issues such as members’
                                                    business days between the hours of
                                                                                                              solicit comments on the proposed rule                   purchases and sales of investment
                                                    10:00 a.m. and 3:00 p.m. Copies of the                    change from interested persons.                         company securities as principal.
                                                    filing also will be available for                                                                                    Proposed FINRA Rule 2341 closely
                                                    inspection and copying at the principal                   I. Self-Regulatory Organization’s
                                                                                                                                                                      tracks the language of NASD Rule 2830
                                                    office of the Exchange. All comments                      Statement of the Terms of Substance of
                                                                                                                                                                      and makes only non-substantive,
                                                    received will be posted without change;                   the Proposed Rule Change
                                                                                                                                                                      technical changes to the text of the
                                                    the Commission does not edit personal                        FINRA is proposing to adopt NASD                     NASD rule by, for instance, replacing
                                                    identifying information from                              Rule 2830 (Investment Company                           the reference to a legacy NASD rule
                                                    submissions. You should submit only                       Securities) as FINRA Rule 2341                          with the applicable FINRA rule and
                                                    information that you wish to make                         (Investment Company Securities) in the                  making other non-substantive, technical
                                                    available publicly. All submissions                       consolidated FINRA rulebook without                     conforming changes.6
                                                    should refer to File Number SR–                           any substantive changes. FINRA also
                                                    BatsBYX–2016–12, and should be                            proposes to update cross-references                        4 The current FINRA rulebook consists of: (1)

                                                    submitted on or before July 19, 2016.                     within other FINRA rules accordingly.                   FINRA Rules; (2) NASD Rules; and (3) rules
                                                                                                                 The text of the proposed rule change                 incorporated from New York Stock Exchange LLC
                                                      For the Commission, by the Division of                                                                          (‘‘NYSE’’) (‘‘Incorporated NYSE Rules’’) (together,
                                                                                                              is available on FINRA’s Web site at                     the NASD Rules and Incorporated NYSE Rules are
                                                    Trading and Markets, pursuant to delegated                http://www.finra.org, at the principal                  referred to as the ‘‘Transitional Rulebook’’). While
                                                    authority.27                                              office of FINRA and at the                              the NASD Rules generally apply to all FINRA
                                                    Brent J. Fields,                                          Commission’s Public Reference Room.                     members, the Incorporated NYSE Rules apply only
                                                                                                                                                                      to those members of FINRA that are also members
                                                    Secretary.                                                                                                        of the NYSE (‘‘Dual Members’’). The FINRA Rules
                                                                                                              II. Self-Regulatory Organization’s
                                                    [FR Doc. 2016–15172 Filed 6–27–16; 8:45 am]                                                                       apply to all FINRA members, unless such rules
                                                                                                              Statement of the Purpose of, and                        have a more limited application by their terms. For
                                                    BILLING CODE 8011–01–P                                    Statutory Basis for, the Proposed Rule                  more information about the rulebook consolidation
                                                                                                              Change                                                  process, see Information Notice, March 12, 2008
                                                                                                                                                                      (Rulebook Consolidation Process).
                                                                                                                 In its filing with the Commission,                      5 As with NASD Rule 2830, FINRA Rule 2341

                                                                                                              FINRA included statements concerning                    would not regulate members’ activities in
                                                                                                              the purpose of and basis for the                        connection with variable insurance contracts,
                                                                                                                                                                      which are regulated by FINRA Rule 2320 (Variable
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                              proposed rule change and discussed any                  Contracts of an Insurance Company).
                                                                                                              comments it received on the proposed                       6 FINRA previously solicited comment on a
                                                                                                              rule change. The text of these statements               proposal to move NASD Rule 2830 to the
                                                                                                              may be examined at the places specified                 Consolidated FINRA Rulebook with substantive
                                                                                                              in Item IV below. FINRA has prepared                    changes. See Regulatory Notice 09–34 (June 2009);
                                                                                                                                                                      see also Securities Exchange Act Release No. 64386
                                                                                                                                                                      May 3, 2011), 76 FR 26779 (May 9, 2011) (Notice
                                                                                                                1 15 U.S.C. 78s(b)(1).                                of Filing File No. SR–FINRA–2011–018)
                                                                                                                2 17 CFR 240.19b–4.                                   (withdrawn on August 1, 2011). Given that FINRA
                                                      27 17   CFR 200.30–3(a)(12).                              3 17 CFR 240.19b–4(f)(6).                             would like to proceed with the rulebook



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                                                                                   Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Notices                                                   42017

                                                       In addition, the proposed rule change                is designed to provide additional clarity               Electronic Comments
                                                    makes technical changes to paragraph                    and regulatory efficiency to FINRA
                                                    (b)(10) of NASD Rule 2830. Paragraph                    members by consolidating the                              • Use the Commission’s Internet
                                                    (b)(10) of NASD Rule 2830 incorporates                  applicable NASD, Incorporated NYSE,                     comment form (http://www.sec.gov/
                                                    by reference several definitions under                  and FINRA rules into one rule set.                      rules/sro.shtml); or
                                                    the Investment Company Act, including                                                                             • Send an email to rule-comments@
                                                                                                            B. Self-Regulatory Organization’s
                                                    ‘‘open-end management investment                                                                                sec.gov. Please include File Number SR–
                                                                                                            Statement on Burden on Competition
                                                    company.’’ However, the Investment                                                                              FINRA–2016–019 on the subject line.
                                                    Company Act does not define the term                       FINRA does not believe that the
                                                    ‘‘open-end management investment                        proposed rule change will result in any                 Paper Comments
                                                    company,’’ but defines ‘‘management                     burden on competition that is not
                                                    company,’’ and divides this term into                   necessary or appropriate in furtherance                   • Send paper comments in triplicate
                                                    two sub-classifications, ‘‘open-end                     of the purposes of the Act. As noted                    to Secretary, Securities and Exchange
                                                    company’’ and ‘‘closed-end company.’’ 7                 above, the proposed rule change will                    Commission, 100 F Street NE.,
                                                    Accordingly, paragraph (b)(10) of                       not substantively change either the text                Washington, DC 20549–1090.
                                                    proposed FINRA Rule 2341 would                          or application of the rule. FINRA would
                                                                                                            like to proceed with the rulebook                       All submissions should refer to File
                                                    incorporate the definitions of ‘‘open-end
                                                                                                            consolidation process expeditiously,                    Number SR–FINRA–2016–019. This file
                                                    company’’ and ‘‘closed-end company’’
                                                    from the Investment Company Act,                        which is believed will provide                          number should be included on the
                                                    rather than ‘‘open-end management                       additional clarity and regulatory                       subject line if email is used. To help the
                                                    investment company.’’ The proposed                      efficiency to members.                                  Commission process and review your
                                                    rule change would then replace                                                                                  comments more efficiently, please use
                                                                                                            C. Self-Regulatory Organization’s                       only one method. The Commission will
                                                    references to the terms ‘‘open-end                      Statement on Comments on the
                                                    management investment company,’’                                                                                post all comments on the Commission’s
                                                                                                            Proposed Rule Change Received From
                                                    ‘‘open-end investment company,’’ and                                                                            Internet Web site (http://www.sec.gov/
                                                                                                            Members, Participants, or Others
                                                    ‘‘open-end management company’’ in                                                                              rules/sro.shtml). Copies of the
                                                    NASD Rule 2830(c), (d), (g), (h), (i) and                 Written comments were neither                         submission, all subsequent
                                                    (j) with references to ‘‘open-end                       solicited nor received.                                 amendments, all written statements
                                                    company.’’ Similarly, the proposed rule                 III. Date of Effectiveness of the                       with respect to the proposed rule
                                                    change would replace references to the                  Proposed Rule Change and Timing for                     change that are filed with the
                                                    term ‘‘closed-end investment company’’                  Commission Action                                       Commission, and all written
                                                    in NASD Rule 2830(d) and (j) with a                                                                             communications relating to the
                                                    reference to ‘‘closed-end company.’’                       Because the foregoing proposed rule
                                                                                                            change does not: (i) Significantly affect               proposed rule change between the
                                                    These proposed changes would correct                                                                            Commission and any person, other than
                                                    these references in the NASD rule for                   the protection of investors or the public
                                                                                                            interest; (ii) impose any significant                   those that may be withheld from the
                                                    the purposes of adopting it as a FINRA                                                                          public in accordance with the
                                                    rule, without changing the substantive                  burden on competition; and (iii) become
                                                                                                            operative for 30 days from the date on                  provisions of 5 U.S.C. 552, will be
                                                    meaning. FINRA has filed the proposed
                                                                                                            which it was filed, or such shorter time                available for Web site viewing and
                                                    rule change for immediate effectiveness.
                                                    The implementation date will be 30                      as the Commission may designate, it has                 printing in the Commission’s Public
                                                    days after the date of the filing.                      become effective pursuant to Section                    Reference Room, 100 F Street NE.,
                                                                                                            19(b)(3)(A) of the Act 9 and Rule 19b–                  Washington, DC 20549, on official
                                                    2. Statutory Basis                                      4(f)(6) thereunder.10                                   business days between the hours of 10
                                                      FINRA believes that the proposed rule                    At any time within 60 days of the                    a.m. and 3 p.m. Copies of such filing
                                                    change is consistent with the provisions                filing of the proposed rule change, the                 also will be available for inspection and
                                                    of Section 15A(b)(6) of the Act,8 which                 Commission summarily may                                copying at the principal office of
                                                    requires, among other things, that                      temporarily suspend such rule change if                 FINRA. All comments received will be
                                                    FINRA rules must be designed to                         it appears to the Commission that such                  posted without change; the Commission
                                                    prevent fraudulent and manipulative                     action is necessary or appropriate in the               does not edit personal identifying
                                                    acts and practices, to promote just and                 public interest, for the protection of                  information from submissions. You
                                                    equitable principles of trade, and, in                  investors, or otherwise in furtherance of
                                                                                                                                                                    should submit only information that
                                                    general, to protect investors and the                   the purposes of the Act. If the
                                                                                                                                                                    you wish to make available publicly. All
                                                    public interest. FINRA believes that the                Commission takes such action, the
                                                                                                                                                                    submissions should refer to File
                                                    proposed rule change, which does not                    Commission shall institute proceedings
                                                                                                            to determine whether the proposed rule                  Number SR–FINRA–2016–019 and
                                                    substantively change the rule, is                                                                               should be submitted on or before July
                                                    consistent with the Act because it is                   should be approved or disapproved.
                                                                                                                                                                    19, 2016.
                                                    being undertaken pursuant to the                        IV. Solicitation of Comments
                                                    rulebook consolidation process, which                                                                             For the Commission, by the Division of
                                                                                                              Interested persons are invited to                     Trading and Markets, pursuant to delegated
                                                                                                            submit written data, views and
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    consolidation process expeditiously to provide                                                                  authority.11
                                                    greater clarity and regulatory efficiency to FINRA      arguments concerning the foregoing,                     Brent J. Fields,
                                                    members, FINRA is proposing to move NASD Rule           including whether the proposed rule
                                                    2830 to the Consolidated FINRA Rulebook without                                                                 Secretary.
                                                                                                            change is consistent with the Act.
                                                    substantive changes at this time, but FINRA may                                                                 [FR Doc. 2016–15178 Filed 6–27–16; 8:45 am]
                                                    consider proposing substantive changes to the rule      Comments may be submitted by any of
                                                    as part of future rulemaking.                           the following methods:                                  BILLING CODE 8011–01–P
                                                      7 See Sections 4(3) and 5(a) of the Investment

                                                    Company Act.                                              9 15   U.S.C. 78s(b)(3)(A).
                                                      8 15 U.S.C. 78o–3(b)(6).                                10 17   CFR 240.19b–4(f)(6).                            11 17   CFR 200.30–3(a)(12).



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Document Created: 2016-06-28 00:53:19
Document Modified: 2016-06-28 00:53:19
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 42016 

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