82 FR 12387 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Rule Cross-References and Make Non-Substantive Technical Changes to Certain FINRA Rules
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 40 (March 2, 2017)
Federal Register Volume 82, Issue 40 (March 2, 2017)
| Page Range | 12387-12389 | |
| FR Document | 2017-04033 |
[Federal Register Volume 82, Number 40 (Thursday, March 2, 2017)] [Notices] [Pages 12387-12389] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-04033] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80105; File No. SR-FINRA-2017-004] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Rule Cross-References and Make Non- Substantive Technical Changes to Certain FINRA Rules February 24, 2017. 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 February 17, 2017, 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). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change FINRA is proposing to update cross-references and make other non- substantive changes within FINRA rules, due in part to the adoption of a new consolidated FINRA rule. 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. [[Page 12388]] 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 FINRA has been developing a consolidated rulebook (``Consolidated FINRA Rulebook'').\4\ That process involves FINRA submitting to the Commission for approval a series of proposed rule changes over time to adopt rules in the Consolidated FINRA Rulebook. The phased adoption and implementation of those rules necessitates periodic amendments to update rule cross-references and other non-substantive changes in the Consolidated FINRA Rulebook. --------------------------------------------------------------------------- \4\ The current FINRA rulebook consists of (1) FINRA Rules; (2) NASD Rules; and (3) rules incorporated from 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). --------------------------------------------------------------------------- The proposed rule change would make some of those changes, as well as other non-substantive changes unrelated to the adoption of rules in the Consolidated FINRA Rulebook. First, the proposed rule change would update rule cross-references to reflect the adoption of FINRA Rule 3210 (Accounts At Other Broker- Dealers and Financial Institutions), a new consolidated rule addressing accounts opened or established by associated persons of members at firms other than the firm with which they are associated. The SEC approved the new rule on April 7, 2016. As part of that rule filing, FINRA also deleted in their entirety NASD Rule 3050, Incorporated NYSE Rules 407, 407A, and Incorporated NYSE Rule Interpretation 407.\5\ Rule 3210 will be implemented on April 3, 2017. As such, the proposed rule change would update references to the new rule number in FINRA Rules 0150 (Application of Rules to Exempted Securities Except Municipal Securities), 2150 (Improper Use of Customers' Securities or Funds; Prohibition Against Guarantees and Sharing in Accounts), 3110 (Supervision), 3280 (Private Securities Transactions of an Associated Person), and 6630 (Applicability of FINRA Rules to Securities Previously Designated as PORTAL Securities). Also, the proposed rule change would update the reference to Incorporated NYSE Rule 407 in FINRA Rule 9217 (Violations Appropriate for Disposition Under Plan Pursuant to SEA Rule 19d-1(c)(2)), given that, as explained more fully in SR-FINRA-2015-029, new FINRA Rule 3210 is the consolidated successor to the NYSE rule.\6\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 77550 (April 7, 2016), 81 FR 21924 (April 13, 2016) (Order Approving File No. SR- FINRA-2015-029). \6\ See supra note 5. In addition, current FINRA Rule 9217 includes reference to Incorporated NYSE Rule 407A. Such reference would be deleted pursuant to the rule change. As explained more fully in SR-FINRA-2015-029, FINRA deleted Incorporated NYSE Rule 407A because that rule is superseded by FINRA Rule 3210. --------------------------------------------------------------------------- Furthermore, the proposed rule change would make technical changes to FINRA Rules 5210 (Publication of Transactions and Quotations) \7\ and 6750 (Dissemination of Transaction Information) \8\ to reflect FINRA Manual style convention changes. --------------------------------------------------------------------------- \7\ See Securities Exchange Act Release No. 79361 (November 21, 2016), 81 FR 85650 (November 28, 2016) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2016-043). \8\ See Securities Exchange Act Release No. 78925 (September 23, 2016), 81 FR 67023 (September 29, 2016) (Order Approving File No. SR-FINRA-2016-023). --------------------------------------------------------------------------- FINRA has filed the proposed rule change for immediate effectiveness. The implementation date for the changes to FINRA Rule 6750 will be March 20, 2017, to coincide with the implementation date of earlier changes to the rule.\9\ The implementation date for the proposed changes to FINRA Rules 0150, 2150, 3110, 3280, 5210, 6630 and 9217 will be April 3, 2017. --------------------------------------------------------------------------- \9\ See supra note 8 for additional detail. --------------------------------------------------------------------------- 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,\10\ 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 the proposed rule change will provide greater clarity to members and the public regarding FINRA's rules. --------------------------------------------------------------------------- \10\ 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. The proposed rule change brings clarity and consistency to FINRA rules without adding any burden on firms. 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 \11\ and Rule 19b- 4(f)(6) thereunder.\12\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or [[Page 12389]] Send an email to [email protected]. Please include File Number SR-FINRA-2017-004 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-2017-004. 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-2017-004, and should be submitted on or before March 23, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2017-04033 Filed 3-1-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 40 / Thursday, March 2, 2017 / Notices 12387
MFS InterMarket Income Trust I [File declaring that it has ceased to be an Filing Date: The application was filed
No. 811–05851] investment company. On January 1, on February 16, 2017.
Summary: Applicant, a closed-end 2017, applicant made a liquidating Applicant’s Address: 1114 Avenue of
investment company, seeks an order distribution to its shareholders, based the Americas, 37th Floor, New York,
declaring that it has ceased to be an on net asset value. Expenses of New York 10036.
investment company. On September 25, approximately $23,000 incurred in For the Commission, by the Division of
2015, applicant made a liquidating connection with the liquidation were Investment Management, pursuant to
distribution to its shareholders, based paid by Partners Group Private Equity delegated authority.
on net asset value. Applicant has (Master Fund), LLC. Robert W. Errett,
retained approximately $180,000 in Filing Date: The application was filed Deputy Secretary.
cash to pay for contingent liabilities for on February 16, 2017.
[FR Doc. 2017–04014 Filed 3–1–17; 8:45 am]
pending litigation. Once the litigation is Applicant’s Address: 1114 Avenue of
BILLING CODE 8011–01–P
resolved, amount remaining in the the Americas, 37th Floor, New York,
fund’s litigation reserve will be New York 10036.
distributed pro rata by ownership Partners Group Private Equity SECURITIES AND EXCHANGE
interest among holders of record of (Institutional TEI), LLC [File No. 811– COMMISSION
shares of common stock of the fund that 22443]
were outstanding as of the record date [Release No. 34–80105; File No. SR–FINRA–
for final liquidation distribution. Summary: Applicant, a closed-end
2017–004]
Expenses of $57,459 incurred in investment company, seeks an order
connection with the liquidation were declaring that it has ceased to be an Self-Regulatory Organizations;
paid by applicant. investment company. On January 1, Financial Industry Regulatory
Filing Date: The application was filed 2017, applicant made a liquidating Authority, Inc.; Notice of Filing and
on February 6, 2017. distribution to its shareholders, based Immediate Effectiveness of a Proposed
Applicant’s Address: c/o on net asset value. Expenses of Rule Change To Update Rule Cross-
Massachusetts Financial Services approximately $11,400 incurred in References and Make Non-Substantive
Company, 111 Huntington Avenue, connection with the liquidation were Technical Changes to Certain FINRA
Boston, Massachusetts 02199. paid by Partners Group Private Equity Rules
(Master Fund), LLC.
Broadmark Funds [File No. 811–22769] February 24, 2017.
Filing Date: The application was filed
Summary: Applicant seeks an order on February 16, 2017. Pursuant to Section 19(b)(1) of the
declaring that it has ceased to be an Applicant’s Address: 1114 Avenue of Securities Exchange Act of 1934
investment company. The applicant has the Americas, 37th Floor, New York, (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
transferred its assets to Salient MF Trust New York 10036. notice is hereby given that on February
and, on December 12, 2014, made a final 17, 2017, Financial Industry Regulatory
distribution to its shareholders based on Partners Group Private Equity
Authority, Inc. (‘‘FINRA’’) filed with the
net asset value. Expenses of (Institutional), LLC [File No. 811–
Securities and Exchange Commission
approximately $199,800 incurred in 22240]
(‘‘SEC’’ or ‘‘Commission’’) the proposed
connection with the reorganization were Summary: Applicant, a closed-end rule change as described in Items I, II,
paid by applicant’s investment adviser investment company, seeks an order and III below, which Items have been
and the acquiring fund’s investment declaring that it has ceased to be an prepared by FINRA. FINRA has
adviser. investment company. On January 1, designated the proposed rule change as
Filing Date: The application was filed 2017, applicant made a liquidating constituting a ‘‘non-controversial’’ rule
on February 9, 2017. distribution to its shareholders, based change under paragraph (f)(6) of Rule
Applicant’s Address: 101 California on net asset value. Expenses of 19b–4 under the Act,3 which renders
Street, 16th Floor, San Francisco, approximately $13,300 incurred in the proposal effective upon receipt of
California 94111. connection with the liquidation were this filing by the Commission. The
Stewart Capital Mutual Funds [File No. paid by Partners Group Private Equity Commission is publishing this notice to
811–21955] (Master Fund), LLC. solicit comments on the proposed rule
Summary: Applicant seeks an order Filing Date: The application was filed change from interested persons.
declaring that it has ceased to be an on February 16, 2017.
I. Self-Regulatory Organization’s
investment company. On November 18, Applicant’s Address: 1114 Avenue of Statement of the Terms of the Substance
2016, applicant made a liquidating the Americas, 37th Floor, New York, of the Proposed Rule Change
distribution to its shareholders, based New York 10036.
on net asset value. Expenses of $287,506 FINRA is proposing to update cross-
Partners Group Private Equity, LLC
incurred in connection with the references and make other non-
[File No. 811–22210]
liquidation were paid by applicant’s substantive changes within FINRA
investment adviser. Summary: Applicant, a closed-end rules, due in part to the adoption of a
Filing Date: The application was filed investment company, seeks an order new consolidated FINRA rule.
on February 14, 2017. declaring that it has ceased to be an The text of the proposed rule change
investment company. On January 1,
sradovich on DSK3GMQ082PROD with NOTICES
Applicant’s Address: 800 is available on FINRA’s Web site at
Philadelphia Street, Indiana, 2017, applicant made a liquidating http://www.finra.org, at the principal
Pennsylvania 15701. distribution to its shareholders, based office of FINRA and at the
on net asset value. Expenses of Commission’s Public Reference Room.
Partners Group Private Equity (TEI), approximately $33,200 incurred in
LLC [File No. 811–22379] connection with the liquidation were 1 15 U.S.C. 78s(b)(1).
Summary: Applicant, a closed-end paid by Partners Group Private Equity 2 17 CFR 240.19b–4.
investment company, seeks an order (Master Fund), LLC. 3 17 CFR 240.19b–4(f)(6).
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![Federal Register / Vol. 82, No. 40 / Thursday, March 2, 2017 / Notices 12389
• Send an email to rule-comments@ 100 F Street NE., Washington, DC purposes. The Commission believes that
sec.gov. Please include File Number SR– 20549–2736. approximately 144 advisers are
FINRA–2017–004 on the subject line. Extension: registered with the Commission under
Rule 203A–2(e), SEC File No. 270–501, rule 203A–2(e), which involves a
Paper Comments
OMB Control No. 3235–0559. recordkeeping requirement of
• Send paper comments in triplicate approximately four burden hours per
Notice is hereby given that, pursuant
to Secretary, Securities and Exchange year per adviser and results in an
to the Paperwork Reduction Act of 1995
Commission, 100 F Street NE., estimated 576 of total burden hours (4
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Washington, DC 20549–1090.
Securities and Exchange Commission × 144) for all advisers.
All submissions should refer to File (‘‘Commission’’) is soliciting comments This collection of information is
Number SR–FINRA–2017–004. This file on the collections of information mandatory, as it is used by Commission
number should be included on the summarized below. The Commission staff in its examination and oversight
subject line if email is used. To help the plans to submit this existing collection program in order to determine
Commission process and review your of information to the Office of continued Commission registration
comments more efficiently, please use Management and Budget for extension eligibility for advisers registered under
only one method. The Commission will and approval. this rule. Responses generally are kept
post all comments on the Commission’s Rule 203A–2(e),1 which is entitled confidential pursuant to section 210(b)
Internet Web site (http://www.sec.gov/ ‘‘Internet Investment Advisers,’’ of the Advisers Act.7 Written comments
rules/sro.shtml). Copies of the exempts from the prohibition on are invited on: (a) Whether the
submission, all subsequent Commission registration an Internet collection of information is necessary
amendments, all written statements investment adviser who provides for the proper performance of the
with respect to the proposed rule investment advice to all of its clients functions of the Commission, including
change that are filed with the exclusively through computer software- whether the information has practical
Commission, and all written based models or applications, termed utility; (b) The accuracy of the
communications relating to the under the rule as ‘‘interactive Web Commission’s estimate of the burden of
proposed rule change between the sites.’’ 2 These advisers generally would the collection of information; (c) Ways
Commission and any person, other than not meet the statutory thresholds to enhance the quality, utility, and
those that may be withheld from the currently set out in section 203A of the clarity of the information collected; and
public in accordance with the Advisers Act 3—they do not manage $25 (d) Ways to minimize the burden of the
provisions of 5 U.S.C. 552, will be million or more in assets and do not collection of information on
available for Web site viewing and advise registered investment companies, respondents, including through the use
printing in the Commission’s Public or they manage between $25 million of automated collection techniques or
Reference Room, 100 F Street NE., and $100 million in assets, do not other forms of information technology.
Washington, DC 20549 on official advise registered investment companies Consideration will be given to
business days between the hours of or business development companies, comments and suggestions submitted in
10:00 a.m. and 3:00 p.m. Copies of the and are required to be registered as writing within 60 days of this
filing also will be available for investment advisers with the states in publication. An agency may not conduct
inspection and copying at the principal which they maintain their principal or sponsor a collection of information
office of FINRA. All comments received offices and places of business and are unless it displays a currently valid OMB
will be posted without change; the subject to examination as an adviser by control number. No person shall be
Commission does not edit personal such states.4 Eligibility under rule subject to any penalty for failing to
identifying information from 203A–2(e) is conditioned on an adviser comply with a collection of information
submissions. You should submit only maintaining in an easily accessible subject to the PRA that does not display
information that you wish to make place, for a period of not less than five a valid OMB control number.
available publicly. All submissions years from the filing of Form ADV,5 a Please direct your written comments
should refer to File Number SR–FINRA– record demonstrating that the adviser’s to Pamela Dyson, Director/Chief
2017–004, and should be submitted on advisory business has been conducted Information Officer, Securities and
or before March 23, 2017. through an interactive Web site in Exchange Commission, C/O Remi
accordance with the rule.6 Pavlik-Simon, 100 F Street NE.,
For the Commission, by the Division of
This record maintenance requirement Washington, DC 20549; or send an email
Trading and Markets, pursuant to delegated
authority.13 is a ‘‘collection of information’’ for PRA to: PRA_Mailbox@sec.gov.
Robert W. Errett, Dated: February 23, 2017.
1 17 CFR 275.203A–2(e).
Deputy Secretary. Robert W. Errett,
2 Included in rule 203A–2(e) is a limited
[FR Doc. 2017–04033 Filed 3–1–17; 8:45 am] Deputy Secretary.
exception to the interactive Web site requirement
BILLING CODE 8011–01–P which allows these advisers to provide investment [FR Doc. 2017–04022 Filed 3–1–17; 8:45 am]
advice to fewer than 15 clients through other means BILLING CODE 8011–01–P
on an annual basis. 17 CFR 275.203A–2(e)(1)(i). The
rule also precludes advisers in a control
SECURITIES AND EXCHANGE relationship with an SEC-registered Internet adviser
COMMISSION from registering with the Commission under the SMALL BUSINESS ADMINISTRATION
common control exemption provided by rule 203A–
sradovich on DSK3GMQ082PROD with NOTICES
Proposed Collection; Comment 2(b) (17 CFR 275.203A–2(b)). 17 CFR 275.203A–
Data Collection Available for Public
Request 2(e)(1)(iii).
3 15 U.S.C. 80b–3a(a). Comments
Upon Written Request, Copies Available 4 Id.
5 The five-year record retention period is a similar 60-day notice and request for
ACTION:
From: Securities and Exchange
recordkeeping retention period as imposed on all comments.
Commission, Office of FOIA Services, advisers under rule 204–2 of the Advisers Act. See
rule 204–2 (17 CFR 275.204–2).
13 17 CFR 200.30–3(a)(12). 6 17 CFR 275.203A–2(e)(1)(ii). 7 15 U.S.C. 80b–10(a).
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Document Created: 2017-03-02 00:09:18
Document Modified: 2017-03-02 00:09:18
| 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 | 82 FR 12387 |
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