[Federal Register Volume 81, Number 136 (Friday, July 15, 2016)]
[Notices]
[Pages 46133-46135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16722]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78281; File No. SR-FINRA-2016-025]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to the Fee for the Regulatory Element of
Continuing Education
July 11, 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 July 1, 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 ``establishing or changing a
due, fee or other charge'' under Section 19(b)(3)(A)(ii) of the Act \3\
and Rule 19b-4(f)(2) thereunder,\4\ 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
FINRA is proposing to amend Section 4 of Schedule A to the FINRA
By-Laws to address the transition of the Regulatory Element of
Continuing Education (``CE'') to the FINRA CE Online System[supreg].
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 46134]]
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 transition to CE Online, FINRA is phasing out test
center delivery of the CE Regulatory Element.\5\ Specifically,
effective July 1, 2016, the option to complete the Regulatory Element
at a test center will no longer be available, and participants must
complete their session using the CE Online System with the exception of
participants who, pursuant to the Americans with Disabilities Act,\6\
may need accommodations in completing their CE session due to a
disability. Participants who need such accommodations may apply for an
accommodation and complete their CE Regulatory Element session at a
test center.\7\
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\5\ See Regulatory Notice 15-28 (August 2015); see also
Information Notice, May 16, 2016 (Elimination of Continuing
Education Delivery at Testing Centers).
\6\ Americans with Disabilities Act of 1990, Public Law 101-336,
104 Stat. 328 (1990).
\7\ See FINRA's CE Online Delivery Accommodation Web page,
available at http://www.finra.org/industry/accommodations-continuing-education-ce-online-participants.
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Currently, pursuant to Section 4(f) of Schedule A to the FINRA By-
Laws, FINRA assesses a session fee of $100 to each participant for each
scheduled session to complete the Regulatory Element at a test center,
and it assesses a session fee of $55 to each participant who completes
the Regulatory Element through the CE Online System. In conjunction
with phasing out test center delivery of the Regulatory Element, FINRA
is proposing to amend Section 4(f) of Schedule A to the FINRA By-Laws
to assess a session fee of $55 for the Regulatory Element regardless of
whether the session is completed at a test center or through the CE
Online System. However, as noted above, only participants who apply for
an accommodation would be eligible to complete their CE Regulatory
Element session at a test center.
In addition, Section 4(c) of Schedule A to the FINRA By-Laws
includes additional fees for taking the Regulatory Element session
outside the United States, failing to appear on time for an appointment
or cancelling or rescheduling an appointment. FINRA is proposing to
make technical changes to Sections 4(c)(3) and (4) of Schedule A to the
FINRA By-Laws to clarify that such additional fees are only applicable
to test center-based sessions. Further, because these additional fees
are based on the initial session fee, which FINRA is proposing to
reduce, the proposed rule change would result in a reduction of the
total fees charged under these sections for completing the Regulatory
Element at a test center.
FINRA has filed the proposed rule change for immediate
effectiveness.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\8\ which requires, among
other things, that FINRA rules provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system that FINRA operates or
controls. The proposed rule change reduces the session fee for
participants who are eligible to complete their CE Regulatory Element
session at a test center, and it aligns the session fee for such
participants with the session fee for participants who complete their
session through the CE Online System.
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\8\ 15 U.S.C. 78o-3(b)(5).
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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 described above,
participants who need an accommodation pursuant to the Americans with
Disabilities Act may apply for an accommodation and complete their CE
Regulatory Element session at a test center. FINRA is proposing to
reduce the session fee for a test center-based session of the CE
Regulatory Element for such participants.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \9\ and paragraph (f)(2) of Rule 19b-4
thereunder.\10\ 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.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
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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 [email protected]. Please include
File Number SR-FINRA-2016-025 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-2016-025. 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.,
[[Page 46135]]
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 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-2016-025, and should
be submitted on or before August 5, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-16722 Filed 7-14-16; 8:45 am]
BILLING CODE 8011-01-P