81 FR 46988 - Sunshine Act Meeting

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 138 (July 19, 2016)

Page Range		46988-46988
FR Document		2016-17167

Federal Register, Volume 81 Issue 138 (Tuesday, July 19, 2016)

[Federal Register Volume 81, Number 138 (Tuesday, July 19, 2016)]
[Notices]
[Page 46988]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17167]


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SECURITIES AND EXCHANGE COMMISSION


Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the 
Government in the Sunshine Act, Public Law 94-409, that the Securities 
and Exchange Commission will hold an Open Meeting on Friday, July 22, 
2016 at 10:30 a.m., in the Auditorium (L-002) at the Commission's 
headquarters building, to hear oral argument in an appeal from an 
initial decision of an administrative law judge by respondent Thomas C. 
Gonnella.
    On November 13, 2014, the ALJ found that Respondent violated 
antifraud provisions, and aided and abetted and caused violations of 
recordkeeping provisions, of the securities laws while associated with 
Barclays, a dually registered broker-dealer and investment adviser. 
Specifically, the ALJ found that Respondent engaged in a fraudulent 
trading scheme in order to avoid aged-inventory charges that were 
implemented under Barclays's internal policy and yet retain the 
securities that were subject to the policy. The ALJ also found that 
Gonnella's failure to record the transactions properly caused 
Barclays's books and records to be incomplete and inaccurate and that 
Gonnella therefore aided and abetted and was a cause of recordkeeping 
violations.
    For these violations, the ALJ suspended Respondent from the 
securities industry and from participation in penny stock offerings for 
twelve months, entered a cease-and-desist order, and assessed a civil 
money penalty of $82,500.
    The Division of Enforcement appealed the suspension, and Respondent 
cross-appealed the findings of violations and sanctions imposed. The 
issues likely to be considered at oral argument include, among other 
things, whether Respondent violated the securities laws and, if so, 
what sanction, if any, is appropriate in the public interest.
    For further information, please contact Brent J. Fields from the 
Office of the Secretary at (202) 551-5400.

     Dated: July 15, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-17167 Filed 7-15-16; 4:15 pm]
 BILLING CODE 8011-01-P

46988 Federal Register / Vol. 81, No. 138 / Tuesday, July 19, 2016 / Notices

SECURITIES AND EXCHANGE Dated: July 13, 2016. SECURITIES AND EXCHANGE
COMMISSION Robert W. Errett, COMMISSION
Deputy Secretary.
Submission for OMB Review; [Release No. 34–78311; File No. TP 16–9)
[FR Doc. 2016–17001 Filed 7–18–16; 8:45 am]
Comment Request BILLING CODE 8011–01–P Order Granting Limited Exemptions
from Exchange Act Rule 10b–17 and
Upon Written Request Copies Available
Rules 101 and 102 of Regulation M to
From: Securities and Exchange SECURITIES AND EXCHANGE PowerShares DWA Momentum & Low
Commission, Office of FOIA Services, COMMISSION
Volatility Rotation Portfolio Pursuant
100 F Street NE., Washington, DC
Sunshine Act Meeting to Exchange Act Rule 10b–17(b)(2) and
20549–2736. Rules 101(d) and 102(e) of Regulation
Extension: Notice is hereby given, pursuant to M
Schedule 13E–4F, SEC File No. 270–340, the provisions of the Government in the
OMB Control No. 3235–0375 Sunshine Act, Public Law 94–409, that July 13, 2016.
the Securities and Exchange By letter dated July 13, 2016 (the
Notice is hereby given that, pursuant Commission will hold an Open Meeting ‘‘Letter’’), as supplemented by
to the Paperwork Reduction Act of 1995 on Friday, July 22, 2016 at 10:30 a.m., conversations with the staff of the
(44 U.S.C. 3501 et seq.), the Securities in the Auditorium (L–002) at the Division of Trading and Markets,
and Exchange Commission Commission’s headquarters building, to counsel for PowerShares Exchange-
(‘‘Commission’’) has submitted to the hear oral argument in an appeal from an Traded Fund Trust II (the ‘‘Trust’’), on
Office of Management and Budget this initial decision of an administrative law behalf of the Trust, PowerShares DWA
request for extension of the previously judge by respondent Thomas C. Momentum & Low Volatility Rotation
approved collection of information Gonnella. Portfolio (the ‘‘Fund’’), any national
discussed below. On November 13, 2014, the ALJ found securities exchange on or through which
that Respondent violated antifraud shares issued by the Fund (‘‘Shares’’)
Schedule 13E–4F (17 CFR 240.13e- provisions, and aided and abetted and may subsequently trade, Invesco
102) may be used by an issuer that is caused violations of recordkeeping Distributors, Inc. (the ‘‘Distributor’’),
incorporated or organized under the provisions, of the securities laws while and persons or entities engaging in
laws of Canada to make a cash tender associated with Barclays, a dually transactions in Shares (collectively, the
or exchange offer for the issuer’s own registered broker-dealer and investment ‘‘Requestors’’), requested exemptions, or
securities if less than 40 percent of the adviser. Specifically, the ALJ found that interpretive or no-action relief, from
class of such issuer’s securities Respondent engaged in a fraudulent Rule 10b–17 of the Securities Exchange
outstanding that are the subject of the trading scheme in order to avoid aged- Act of 1934, as amended (‘‘Exchange
tender offer is held by U.S. holders. The inventory charges that were Act’’), and Rules 101 and 102 of
information collected must be filed with implemented under Barclays’s internal Regulation M, in connection with
the Commission and is publicly policy and yet retain the securities that secondary market transactions in Shares
available. We estimate that it takes were subject to the policy. The ALJ also and the creation or redemption of
approximately 2 hours per response to found that Gonnella’s failure to record aggregations of Shares of at least 50,000
prepare Schedule 13E–4F and that the the transactions properly caused shares (‘‘Creation Units’’).
information is filed by approximately 3 Barclays’s books and records to be The Trust is registered with the
respondents annually for a total annual incomplete and inaccurate and that Securities and Exchange Commission
reporting burden of 6 hours (2 hours per Gonnella therefore aided and abetted (‘‘Commission’’) under the Investment
response × 3 responses). and was a cause of recordkeeping Company Act of 1940, as amended
violations. (‘‘1940 Act’’), as an open-end
An agency may not conduct or For these violations, the ALJ
sponsor, and a person is not required to management investment company. The
suspended Respondent from the Fund seeks to track the performance of
respond to, a collection of information securities industry and from
unless it displays a currently valid the underlying index, the Dorsey
participation in penny stock offerings Wright® Multi-Factor Global Equity
control number. for twelve months, entered a cease-and- Index (the ‘‘Index’’). The Fund intends
The public may view the background desist order, and assessed a civil money to operate as an ‘‘ETF of ETFs’’ by
documentation for this information penalty of $82,500. seeking to track the performance of its
collection at the following Web site, The Division of Enforcement appealed
underlying Index through, under normal
www.reginfo.gov. Comments should be the suspension, and Respondent cross-
circumstances,1 investing at least 90%
directed to: (i) Desk Officer for the appealed the findings of violations and
of its total assets 2 in up to eight ETFs
Securities and Exchange Commission, sanctions imposed. The issues likely to
Office of Information and Regulatory be considered at oral argument include, 1 The term ‘‘under normal circumstances’’

Affairs, Office of Management and among other things, whether includes, but is not limited to, the absence of
Budget, Room 10102, New Executive Respondent violated the securities laws adverse market, economic, political, or other
and, if so, what sanction, if any, is conditions, including extreme volatility or trading
Office Building, Washington, DC 20503, halts in the securities markets or the financial
or by sending an email to: Shagufta_ appropriate in the public interest. markets generally; operational issues causing
For further information, please dissemination of inaccurate market information; or
Ahmed@omb.eop.gov; and (ii) Pamela
mstockstill on DSK3G9T082PROD with NOTICES

contact Brent J. Fields from the Office of force majeure-type events, such as systems failure,
Dyson, Director/Chief Information
the Secretary at (202) 551–5400. natural or man-made disaster, act of God, armed
Officer, Securities and Exchange conflict, act of terrorism, riot or labor disruption, or
Commission, c/o Remi Pavlik-Simon, Dated: July 15, 2016. any similar intervening circumstance.
100 F Street NE., Washington, DC 20549 Brent J. Fields, 2 The remaining ten percent of the Fund’s total

Secretary. assets may be invested in securities (including other
or send an email to: PRA_Mailbox@ underlying funds) not included in the underlying
sec.gov. Comments must be submitted to [FR Doc. 2016–17167 Filed 7–15–16; 4:15 pm] Index and in money market instruments or funds
OMB within 30 days of this notice. BILLING CODE 8011–01–P that invest exclusively in money market

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Document Created: 2016-07-19 01:10:51
Document Modified: 2016-07-19 01:10:51

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		81 FR 46988