83 FR 19850 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 13
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 87 (May 4, 2018)
Federal Register Volume 83, Issue 87 (May 4, 2018)
| Page Range | 19850-19853 | |
| FR Document | 2018-09441 |
[Federal Register Volume 83, Number 87 (Friday, May 4, 2018)] [Notices] [Pages 19850-19853] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-09441] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83134; File No. SR-NYSE-2018-17] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 13 April 30, 2018. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b--4 thereunder,\3\ notice is hereby given that on April 20, 2018, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. 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\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the preamble to Rule 13 to provide that the definition of ``retail'' in subsection (f)(2) be applicable to trading of UTP [[Page 19851]] Securities on Pillar trading platform. The proposed rule change is available on the Exchange's website at www.nyse.com, at the principal office of the Exchange, 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, the self-regulatory organization 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 those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose On April 9, 2018, the Exchange introduced trading of UTP Securities on the Exchange on the Pillar trading platform.\4\ As described in the UTP Trading Rules Filing, for each current Exchange rule that is not applicable for trading on the Pillar trading platform, the Exchange added a preamble to such rule providing that ``this rule is not applicable to trading UTP Securities on the Pillar trading platform.'' Exchange rules governing equities trading that do not have this preamble currently govern Exchange operations on Pillar.\5\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No.82945 (March 26, 2018), 83 FR 13553, 13555 (March 29, 2018) (SR-NYSE-2017-36) (the ``UTP Trading Rules Filing''). The term ``UTP Security'' means a security that is listed on a national securities exchange other than the Exchange and that trades on the Exchange pursuant to unlisted trading privileges. See Rule 1.1(ii). \5\ See UTP Trading Rules Filing, 83 FR at 13554, n.17. --------------------------------------------------------------------------- The Exchange proposes to amend the preamble to Rule 13 to provide that the definition of ``retail'' modifier in subsection (f)(2) would be applicable to the trading of UTP Securities on the Pillar trading platform. Under Rule 13(f)(2)(A), an order designated with a ``retail'' modifier is an agency order or a riskless principal order that meets the criteria of FINRA Rule 5320.03 that originates from a natural person and is submitted to the Exchange by a member organization, provided that no change is made to the terms of the order with respect to price or side of market and the order does not originate from a trading algorithm or any other computerized methodology. An order with a ``retail'' modifier is separate and distinct from a ``Retail Order'' under Rule 107C. Under subsection (C), to submit a ``retail'' order, a member organization must also submit an attestation, in a form prescribed by the Exchange, that substantially all orders submitted as ``retail'' will qualify as such. Finally, a member organization must have written policies and procedures reasonably designed to assure that it will only designate orders as ``retail'' if all requirements of paragraph (f)(4)(A) are met.\6\ The Exchange would determine if and when a member organization is disqualified from submitting ``retail'' orders and, when disqualification determinations are made, the Exchange would provide a written disqualification notice to the member organization.\7\ A disqualified member organization may (1) appeal such disqualification, and/or (B) resubmit the attestation described in Rule 13(f)(4)(C) 90 days after the date of the disqualification notice from the Exchange.\8\ --------------------------------------------------------------------------- \6\ Rule 13(f)(2)(D) provides that such written policies and procedures must require the member organization to (i) exercise due diligence before entering a ``retail'' order to assure that entry as a ``retail'' order is in compliance with the requirements of Rule 13(f)(4)(A), and (ii) monitor whether orders entered as ``retail'' orders meet the applicable requirements. If a member organization represents ``retail'' orders from another broker-dealer customer, the member organization's supervisory procedures must be reasonably designed to assure that the orders it receives from such broker- dealer customer that it designates as ``retail'' orders meet the definition of a ``retail'' order in Rule 13(f)(4)(A). Further, the member organization must (i) obtain an annual written representation, in a form acceptable to the Exchange, from each broker-dealer customer that sends it orders to be designated as ``retail'' orders that entry of such orders as ``retail'' orders will be in compliance with the requirements of Rule 13(f)(4)(A); and (ii) monitor whether its broker-dealer customer's ``retail'' order flow meets the applicable requirements. \7\ See Rule 13(f)(4)(E). \8\ If a member organization disputes the Exchange's decision to disqualify it from submitting ``retail'' orders, the member organization may request, within five business days after notice of the decision is issued by the Exchange, that the ``retail'' order ``Hearing Panel'' review the decision to determine if it was correct. The Hearing Panel would consist of the NYSE's Chief Regulatory Officer (``CRO''), or a designee of the CRO, and two officers of the Exchange designated by the Chief Executive Officer of ICE Group. The Hearing Panel would review the facts and render a decision within the time frame prescribed by the Exchange. The Hearing Panel may overturn or modify an action taken by the Exchange under this Rule. A determination by the Hearing Panel shall constitute final action by the Exchange. See Rule 13(f)(4)(F). --------------------------------------------------------------------------- The proposed applicability of the definition of ``retail'' modifier to the trading of UTP Securities on the Pillar trading platform would enable the Exchange to propose transaction pricing related to retail orders in UTP Securities that add liquidity to the Exchange, as is currently the case for orders designated as ``retail'' in Tape A securities.\9\ As is also the case with orders designated as ``retail'' in Tape A securities, member organizations not wishing to be eligible for the proposed pricing would be free to not designate orders in UTP Securities as ``retail.'' The Exchange believes providing member organizations with the ability to submit orders designated as ``retail'' in UTP Securities would incentivize the submission of additional retail order flow to a public market, to the benefit of the marketplace and all market participants. --------------------------------------------------------------------------- \9\ See page 5 of the current Price List, available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf. --------------------------------------------------------------------------- To effect this change, the Exchange proposes to amend the preamble to Rule 13 by adding the clause ``With the exception of the definition of a ``retail'' modifier in Rule 13(f)(2)'' immediately before the phrase ``This Rule is not applicable to trading UTP Securities on the Pillar trading platform.'' 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\10\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\11\ in particular, because it is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and protect investors and the public interest and because it is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule change is consistent with these principles because it would increase competition among execution venues by enabling the Exchange to file a separate proposed rule change to establish fees and credits relating to orders in UTP Securities designated as ``retail,'' thereby encouraging the submission of retail order flow in UTP Securities to a public market. The Exchange believes that promoting submission of orders designated as ``retail'' in UTP Securities would attract additional retail order flow to a public market and that such a process would contribute to perfecting the mechanisms of a free and open market and a national market system. The Exchange further [[Page 19852]] believes that promoting such orders in UTP Securities would not permit unfair discrimination between customers, issuers, brokers, or dealers because, as is currently the case for orders designated as ``retail'' in Tape A securities, promoting orders designated as ``retail'' in UTP Securities would promote a competitive process around retail executions and would result in greater transparency and competitiveness surrounding executions of retail flow.\12\ --------------------------------------------------------------------------- \12\ See Securities Exchange Act Release No.72253 (May 27, 2014), 79 FR 31353, 31355 (June 2, 2014) (SR-NYSE-2014-26) (Notice). --------------------------------------------------------------------------- The Exchange believes that the proposed change is designed to prevent fraudulent and manipulative acts and practices and to promote just and equitable principles of trade because it would contribute to increasing the proportion of retail flow in UTP Securities that are executed on a registered national securities exchange and would protect investors and the public interest by contributing to investors' confidence in the fairness of their transactions and because it would benefit all investors by deepening the Exchange's liquidity pool, supporting the quality of price discovery, promoting market transparency and improving investor protection. For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, the Exchange believes that the proposed change would increase competition among execution venues and encourage additional liquidity in UTP Securities. In this regard, the Exchange believes that the transparency and competitiveness of attracting additional executions on an exchange market would encourage competition. The proposal would also promote competition on the Exchange because the ability to designate an order as ``retail'' would be available to all member organizations that submit qualifying orders and satisfy the other related requirements. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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 \13\ and Rule 19b-4(f)(6) thereunder.\14\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \15\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. According to the Exchange, waiver of the operative delay would allow the Exchange to implement, without undue delay, a process that is already in place for Tape A securities that would incentivize the submission of retail order flow in UTP securities to a public market to the benefit of the marketplace and all market participants. The Commission believes that the proposal raises no new or novel issues and that waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\17\ --------------------------------------------------------------------------- \15\ 17 CFR 240.19b-4(f)(6). \16\ 17 CFR 240.19b-4(f)(6)(iii). \17\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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 change 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 Send an email to [email protected]. Please include File Number SR-NYSE-2018-17 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSE-2018-17. 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 website (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 website 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 the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSE-2018-17 and should be submitted on or before May 25, 2018. [[Page 19853]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-09441 Filed 5-3-18; 8:45 am] BILLING CODE 8011-01-P
![19850 Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Notices
III. Date of Effectiveness of the delay is consistent with the protection available for website viewing and
Proposed Rule Change and Timing for of investors and the public interest. printing in the Commission’s Public
Commission Action Accordingly, the Commission hereby Reference Room, 100 F Street NE,
Because the foregoing proposed rule waives the 30-day operative delay and Washington, DC 20549, on official
change does not: (i) Significantly affect designates the proposed rule change business days between the hours of
the protection of investors or the public operative upon filing.12 10:00 a.m. and 3:00 p.m. Copies of the
interest; (ii) impose any significant At any time within 60 days of the filing also will be available for
burden on competition; and (iii) become filing of the proposed rule change, the inspection and copying at the principal
operative for 30 days from the date on Commission summarily may office of the Exchange. All comments
which it was filed, or such shorter time temporarily suspend such rule change if received will be posted without change.
as the Commission may designate, it has it appears to the Commission that such Persons submitting comments are
become effective pursuant to Section action is necessary or appropriate in the cautioned that we do not redact or edit
19(b)(3)(A) of the Act 8 and Rule 19b– public interest, for the protection of personal identifying information from
4(f)(6) thereunder.9 investors, or otherwise in furtherance of comment submissions. You should
A proposed rule change filed the purposes of the Act. If the submit only information that you wish
pursuant to Rule 19b–4(f)(6) under the Commission takes such action, the to make available publicly. All
Act 10 normally does not become Commission shall institute proceedings submissions should refer to File
operative for 30 days after the date of its to determine whether the proposed rule Number SR–NASDAQ–2018–031 and
filing. However, Rule 19b–4(f)(6)(iii) 11 change should be approved or should be submitted on or before May
permits the Commission to designate a disapproved. 25, 2018.
shorter time if such action is consistent IV. Solicitation of Comments For the Commission, by the Division of
with the protection of investors and the Trading and Markets, pursuant to delegated
Interested persons are invited to authority.13
public interest. The Exchange has asked
submit written data, views, and
the Commission to waive the 30-day Eduardo A. Aleman,
arguments concerning the foregoing,
operative delay so that the proposed Assistant Secretary.
including whether the proposed rule
rule change may become operative upon [FR Doc. 2018–09448 Filed 5–3–18; 8:45 am]
change is consistent with the Act.
filing. Waiver of the operative delay BILLING CODE 8011–01–P
Comments may be submitted by any of
would allow the Exchange to prevent
the following methods:
MPPOs and Midpoint Pegged Orders
from participating in the Nasdaq Halt Electronic Comments SECURITIES AND EXCHANGE
Cross without delay. The Commission • Use the Commission’s internet COMMISSION
also notes that the proposal would comment form (http://www.sec.gov/ [Release No. 34–83134; File No. SR–NYSE–
ensure that MPPOs and Midpoint rules/sro.shtml); or 2018–17]
Pegged Orders do not participate in any • Send an email to rule-comments@
cross (i.e., Nasdaq Opening Cross, sec.gov. Please include File Number SR– Self-Regulatory Organizations; New
Nasdaq Halt Cross, and Nasdaq Closing NASDAQ–2018–031 on the subject line. York Stock Exchange LLC; Notice of
Cross). According to the Exchange, Filing and Immediate Effectiveness of
MPPOs and Midpoint Pegged Orders are Paper Comments
Proposed Rule Change Amending Rule
designed for regular trading on the • Send paper comments in triplicate 13
Exchange’s continuous market, and the to Secretary, Securities and Exchange
proposal would ensure that these orders Commission, 100 F Street NE, April 30, 2018.
behave in a manner consistent with Washington, DC 20549–1090. Pursuant to Section 19(b)(1) 1 of the
members’ expectations. Moreover, All submissions should refer to File Securities Exchange Act of 1934 (the
waiver of the operative delay would Number SR–NASDAQ–2018–031. This ‘‘Act’’) 2 and Rule 19b-–4 thereunder,3
allow the Exchange to immediately file number should be included on the notice is hereby given that on April 20,
correct its rules to reflect that Open subject line if email is used. To help the 2018, New York Stock Exchange LLC
Eligible Interest and Close Eligible Commission process and review your (‘‘NYSE’’ or the ‘‘Exchange’’) filed with
Interest (i.e., interest that is available to comments more efficiently, please use the Securities and Exchange
execute in the crosses if remaining on only one method. The Commission will Commission (the ‘‘Commission’’) the
the book at the time of the cross price post all comments on the Commission’s proposed rule change as described in
calculation) are included in tie-breakers internet website (http://www.sec.gov/ Items I and II below, which Items have
for the Nasdaq Opening Cross and rules/sro.shtml). Copies of the been prepared by the self-regulatory
Nasdaq Closing Cross price calculations, submission, all subsequent organization. The Commission is
respectively, thus reducing any amendments, all written statements publishing this notice to solicit
potential member confusion with respect to the proposed rule comments on the proposed rule change
surrounding the cross price change that are filed with the from interested persons.
calculations. The Commission believes Commission, and all written I. Self-Regulatory Organization’s
that waiver of the 30-day operative communications relating to the Statement of the Terms of Substance of
proposed rule change between the the Proposed Rule Change
8 15 U.S.C. 78s(b)(3)(A). Commission and any person, other than
9 17 CFR 240.19b–4(f)(6). As required under Rule The Exchange proposes to amend the
those that may be withheld from the
19b–4(f)(6)(iii), the Exchange provided the preamble to Rule 13 to provide that the
amozie on DSK3GDR082PROD with NOTICES
Commission with written notice of its intent to file public in accordance with the
definition of ‘‘retail’’ in subsection (f)(2)
the proposed rule change, along with a brief provisions of 5 U.S.C. 552, will be
description and the text of the proposed rule
be applicable to trading of UTP
change, at least five business days prior to the date 12 For purposes only of waiving the 30-day
13 17 CFR 200.30–3(a)(12).
of filing of the proposed rule change, or such operative delay, the Commission has also
shorter time as designated by the Commission. considered the proposed rule’s impact on
1 15 U.S.C.78s(b)(1).
10 17 CFR 240.19b–4(f)(6). 2 15 U.S.C. 78a.
efficiency, competition, and capital formation. See
11 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 83, No. 87 / Friday, May 4, 2018 / Notices 19853
For the Commission, by the Division of Cozen O’Connor, One Liberty Place, Applicant has no investment advisory
Trading and Markets, pursuant to delegated 1650 Market Street, Suite 2800, clients other than Family Clients as
authority.18 Philadelphia, PA 19103. required by paragraph (b)(1) of the
Eduardo A. Aleman, FOR FURTHER INFORMATION CONTACT: Family Office Rule); (ii) the Applicant is
Assistant Secretary. James D. McGinnis, Senior Counsel, at owned and controlled in a manner that
[FR Doc. 2018–09441 Filed 5–3–18; 8:45 am] (202) 551–3025 or Holly L. Hunter-Ceci, complies in all respects with paragraph
BILLING CODE 8011–01–P Assistant Chief Counsel, at (202) 551– (b)(2) of the Family Office Rule; and (iii)
6825 (Division of Investment the Applicant does not hold itself out to
Management, Chief Counsel’s Office). the public as an investment adviser as
SECURITIES AND EXCHANGE required by paragraph (b)(3) of the
SUPPLEMENTARY INFORMATION: The
COMMISSION Family Office Rule. At the time of the
following is a summary of the
application, the Applicant represents
[Investment Advisers Act Release No. 4902/ application. The complete application
that Family Members account for
803–00239] may be obtained via the Commission’s
approximately 100% of the natural
website either at http://www.sec.gov/
1112 Partners, LLC persons to whom the Applicant
rules/iareleases.shtml or by calling (202)
provides Advisory Services.
May 1, 2018. 551–8090. 5. In addition to the Family Clients,
AGENCY: Securities and Exchange Applicant’s Representations: the Applicant desires to provide
Commission (‘‘Commission’’). Services (including Advisory Services)
1. The Applicant is a recently-formed,
ACTION: Notice. to the parents of a spouse of a lineal
multi-generational single-family office
descendant of William Render Ford
Notice of application for an exemptive that provides or intends to provide (‘‘Parents-in-Law’’), the brother of a
order under section 202(a)(11)(H) of the services to the family and descendants spouse of a lineal descendant of William
Investment Advisers Act of 1940 of William Render Ford. The Applicant
Render Ford and his spouse and
(‘‘Advisers Act’’). is wholly-owned by Family Clients and children (‘‘Brother-in-Law’’) and
Applicant: 1112 Partners, LLC (the is exclusively controlled (directly and retirement plan accounts of the Parents-
‘‘Applicant’’). indirectly) by one or more Family in-Law or Brother-in-Law (collectively,
Relevant Advisers Act Sections: Members and/or Family Entities in the ‘‘Additional Family Clients’’).
Exemption requested under section compliance with Rule 202(a)(11)(G)–1 6. The Additional Family Clients do
202(a)(11)(H) of the Advisers Act from (the ‘‘Family Office Rule’’). For not have an ownership interest in the
section 202(a)(11) of the Advisers Act. purposes of the application, the term Applicant. The Applicant represents
Summary of Application: The ‘‘Ford Family’’ means the lineal that the assets beneficially owned by
Applicant requests that the Commission descendants of William Render Ford, Family Members and/or Family Entities
issue an order declaring it to be a person their spouses or spousal equivalents, (excluding the Additional Family
not within the intent of Section and all other persons and entities that Clients) would make up at least 90% of
202(a)(11) of the Advisers Act, which qualify as ‘‘Family Clients’’ as defined the total assets for which the Applicant
defines the term ‘‘investment adviser.’’ in paragraph (d)(4) of the Family Office provides Advisory Services.
Filing Dates: The application was Rule. Unless otherwise indicated, 7. The Applicant represents that the
filed on January 17, 2017, and amended capitalized terms herein have the same Parents-in-Law and Brother-in-Law have
on May 8, 2017; September 15, 2017; meaning as defined in the Family Office important familial ties to and are an
and March 9, 2018. Rule. integral part of the Ford Family. The
Hearing or Notification of Hearing: An 2. The Applicant provides both Applicant maintains that including the
order granting the application will be advisory and non-advisory services Additional Family Clients in the
issued unless the Commission orders a (collectively, ‘‘Services’’) to members of ‘‘family’’ simply recognizes and
hearing. Interested persons may request the Ford Family. Any Service provided memorializes the familial ties and intra-
a hearing by writing to the by the Applicant that relates to familial relationships that already exist,
Commission’s Secretary and serving the investment advice about securities or and have existed for fifteen (15) years
Applicant with a copy of the request, may otherwise be construed as advisory and that the inclusion of the Additional
personally or by mail. Hearing requests in nature is considered an ‘‘Advisory Family Clients as members of the Ford
should be received by the Commission Service.’’ Family for which the Applicant may
by 5:30 p.m. on May 25, 2018, and 3. Prior to forming the Applicant, provide Services would be consistent
should be accompanied by proof of David B. Ford, Jr. was associated with with the existing familial relationship
service on the Applicant, in the form of a third-party registered investment among the family members.
an affidavit or, for lawyers, a certificate adviser (‘‘RIA’’) that for approximately
of service. Pursuant to Rule 0–5 under eleven (11) years managed substantially The Applicant’s Legal Analysis
the Advisers Act, hearing requests all of the advisory accounts of the Ford 1. Section 202(a)(11) of the Advisers
should state the nature of the writer’s Family managed or intended to be Act defines the term ‘‘investment
interest, any facts bearing upon the managed by the Applicant, and among adviser’’ to mean ‘‘any person who, for
desirability of a hearing on the matter, these accounts were accounts of the compensation, engages in the business
the reason for the request, and the issues Additional Family Clients (as defined of advising others, either directly or
contested. Persons may request below). Effective as of October 1, 2016, through publications or writings, as to
notification of a hearing by writing to David B. Ford, Jr.’s association with RIA the value of securities or as to the
amozie on DSK3GDR082PROD with NOTICES
the Commission’s Secretary. was terminated. Commencing October 1, advisability of investing in, purchasing,
ADDRESSES: Secretary, Securities and 2016, the advisory accounts of the or selling securities, or who, for
Exchange Commission, 100 F Street NE, Family Clients managed by RIA were compensation and as part of a regular
Washington, DC 20549. Applicant, 1112 transition to the Applicant. business, issues or promulgates analyses
Partners, LLC, c/o Ingrid R. Welch, Esq., 4. The Applicant represents that: (i) or reports concerning securities. . . .’’
Each of the persons served by the 2. The Applicant falls within the
18 17 CFR 200.30–3(a)(12). Applicant is a Family Client (i.e., the definition of an investment adviser
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Document Created: 2018-11-02 09:52:25
Document Modified: 2018-11-02 09:52:25
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 19850 |
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