[Federal Register Volume 80, Number 101 (Wednesday, May 27, 2015)]
[Notices]
[Pages 30305-30306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12689]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75012; File No. SR-FINRA-2014-047]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Designation of a Longer Period for
Commission Action on Proceedings To Determine Whether To Approve or
Disapprove a Proposed Rule Change Relating to FINRA Rule 2241 (Research
Analysts and Research Reports) in the Consolidated FINRA Rulebook
May 20, 2015.
I. Introduction
On November 14, 2014, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule to adopt NASD Rule 2711 (Research Analysts and Research
Reports) as a FINRA rule, with several modifications, amend NASD Rule
1050 (Registration of Research Analysts) and Incorporated NYSE Rule 344
to create an exception from the research analyst qualification
requirement, and renumber NASD Rule 2711 as FINRA Rule 2241 in the
consolidated FINRA rulebook. The proposal was published for comment in
the Federal Register on November 24, 2014.\3\ The Commission received
four comments on the original proposal.\4\ On February 19, 2015, FINRA
filed Amendment No. 1 responding to these original comments received to
the proposal as well as to propose amendments in response to these
comments. The proposal, as amended by Amendment No. 1, was published
for comment in the Federal Register on
[[Page 30306]]
March 18, 2015.\5\ On February 20, 2015, the Commission issued an order
instituting proceedings pursuant to Section 19(b)(2)(B) of the Act \6\
to determine whether to approve or disapprove the proposal. This order
was published for comment in the Federal Register on February 26,
2015.\7\ The Commission received a further three comments regarding the
proceedings or in response to Amendment No. 1,\8\ to which FINRA
responded via letter on May 5, 2015.\9\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Exchange Act Release No. 73622 (Nov. 18, 2014); 79 FR 69939
(Nov. 24, 2014). On January 6, 2015, FINRA consented to extending
the time period for the Commission to either approve or disapprove
the proposed rule change, or to institute proceedings to determine
whether to approve or disapprove the proposed rule change, to
February 20, 2015.
\4\ See Letter from Kevin Zambrowicz, Associate General Counsel
& Managing Director and Sean Davy, Managing Director, SIFMA, dated
Dec. 15, 2014, Letter from Hugh D. Berkson, President-Elect, Public
Investors Arbitration Bar Association, dated Dec. 15, 2014, Letter
from Stephanie R. Nicholas, WilmerHale, dated Dec. 16, 2014, and
Letter from William Beatty, President and Washington (State)
Securities Administrator, North American Securities Administrators
Association, Inc., dated Dec. 19, 2014.
\5\ Exchange Act Release No. 74488 (Mar. 12, 2015); 80 FR 14174
(Mar. 18, 2015).
\6\ 15 U.S.C. 78s(b)(2)(B).
\7\ Exchange Act Release No. 74339 (Feb. 20, 2015); 80 FR 10528
(Feb. 26, 2015). Specifically, the Commission instituted proceedings
to allow for additional analysis of the proposed rule change's
consistency with Section 15A(b)(9) of the Act, which requires that
FINRA's rules be designed to, among other things, 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, in general, to protect investors and the public interest, and
Section 15D of the Act, which requires rules reasonably designed to
address conflicts of interest that can arise when research analysts
recommend equity securities in research reports and public
appearances. See id.
\8\ Letter from Egidio Mogavero, Managing Director and Chief
Compliance Officer, JMP Securities, dated Mar. 19, 2015, Letter from
Stephanie R. Nicholas, WilmerHale, dated Apr. 6, 2015, and Letter
from William Beatty, President and Washington (State) Securities
Administrator, North American Securities Administrators Association,
Inc., dated Apr. 17, 2015.
\9\ Letter from Philip Shaikun, Vice President and Associate
General Counsel, FINRA, dated May 5, 2015.
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Section 19(b)(2) of the Act \10\ provides that, after initiating
approval or disapproval proceedings, the Commission shall issue an
order approving or disapproving the proposed rule change not later than
180 days after the date of publication of notice of filing of the
proposed rule change. The Commission may extend the period for issuing
an order approving or disapproving the proposed rule change, however,
by not more than 60 days if the Commission determines that a longer
period is appropriate and publishes the reasons for such determination.
The proposal was published for comment in the Federal Register on
November 24, 2014.\11\ The 180th day after publication of the notice of
the filing of the proposed rule change in the Federal Register is May
23, 2015 and the 240th day after publication of the notice of the
filing of the proposed rule change in the Federal Register is July 22,
2015.
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\10\ 15 U.S.C. 78s(b)(2).
\11\ See supra note 3 and accompanying text.
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The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change so that it has sufficient time to consider the proposed
rule change, including the matters raised in the comment letters to the
proposed rule change.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\12\ designates July 22, 2015 as the date by which the Commission
shall either approve or disapprove the proposed rule change (File No.
SR-FINRA-2014-047).
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\12\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(57).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-12689 Filed 5-26-15; 8:45 am]
BILLING CODE 8011-01-P