[Federal Register Volume 85, Number 102 (Wednesday, May 27, 2020)]
[Notices]
[Pages 31832-31836]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11287]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88917; File No. SR-FINRA-2020-015]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Temporarily Amend Certain Timing, Method of
Service and Other Procedural Requirements in FINRA Rules During the
Outbreak of the Coronavirus Disease (COVID-19)
May 20, 2020.
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 May 8, 2020, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission
(``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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA proposes to temporarily amend FINRA Rules 1012, 1015, 6490,
9132, 9133, 9146, 9321, 9341, 9349, 9351, 9522, 9524, 9525, 9559, and
9630 primarily to provide FINRA with temporary relief from certain
timing, method of service and other procedural requirements during the
period in which FINRA's operations are impacted by the outbreak of the
coronavirus disease (``COVID-19'').\3\ The text of the proposed rule
change is available on FINRA's website at http://www.finra.org, at the
principal office of FINRA and at the Commission's Public Reference
Room.
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\3\ While the temporary rule change primarily provides FINRA
with relief, it also requires applicants, respondents and other
parties to file certain applications, documents or other information
by electronic mail, unless FINRA and the relevant party agree to an
alternative method of service. The rule change also temporarily
provides an extension of time for a Requesting Party to file an
appeal in connection with Rule 6490(e) and removes the requirement
to send FINRA a duplicate hard copy of certain documents and
filings. FINRA has proposed these temporary rule changes in an
effort to provide consistent relief to both FINRA and the impacted
party under those rules.
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[[Page 31833]]
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. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
The outbreak of COVID-19 has caused substantial impacts on FINRA's
operations. Specifically, FINRA employees, with limited exceptions,
have been directed to work remotely and restrict certain in-person
activities, consistent with the recommendations of public health
officials.\4\ FINRA faces challenges meeting certain procedural
requirements and performing certain functions in this remote work
environment. In particular, working remotely makes it exceedingly
difficult to send and receive hard copy mail and conduct in-person
meetings and hearings.
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\4\ FINRA has noted that state imposed restrictions on business
operations and other activities in response to the spread of COVID-
19 continue and change rapidly. Some states have imposed significant
limitations on business operations, and essential businesses have
scaled back operations by, for example, reducing store hours in some
locations. These developments may impact the ability of some
individuals involved with FINRA proceedings to obtain and send
necessary documents.
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The rule changes will provide temporary relief from the timing,
method of service and other procedural requirements described below
during the period in which FINRA's operations are impacted by COVID-19.
The rule changes would also require applicants, respondents and other
parties to serve or file certain documents or other information by
electronic mail, unless the parties agree to an alternative method,
during this same time period. As proposed, these changes would be in
place through June 15, 2020.\5\
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\5\ If FINRA requires temporary relief from these rule
requirements beyond June 15, 2020, FINRA may submit a separate rule
filing to extend the effectiveness of the temporary relief under
these rules. The amended FINRA rules will revert back to their
current state at the conclusion of the temporary relief period and
any extension thereof.
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The requested relief will help minimize the impact of the COVID-19
outbreak on FINRA's operations, allowing FINRA to continue critical
adjudicatory and review processes in a reasonable and fair manner and
meet its critical investor protection goals, while also following best
practices with respect to the health and safety of its employees.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The FINRA Rule 1000, 6400, 9100, 9300, 9520, 9550 and 9600 Series
contain some filing, service, timing and other procedural requirements
that present unique challenges in the current remote work environment.
In response to these challenges, FINRA proposed to make temporary
amendments to these rule requirements to (i) allow, and in some
instances require, FINRA to serve certain documents by electronic mail
(or ``email''); (ii) require that applicants, respondents, and other
parties file or serve documents by electronic mail in connection with
specified proceedings and processes, unless the parties agree to an
alternative method of service; (iii) provide extensions of time to
FINRA staff, respondents and other parties in connection with certain
adjudicatory and review processes; and (iv) allow for oral arguments
before the National Adjudicatory Council (``NAC'') to be conducted by
video conference.
a. Amendments To Allow or Require FINRA To Serve Documents by
Electronic Mail
The current need for FINRA employees to work remotely and restrict
certain in-person activities makes it difficult to send hard copy
documents. FINRA's rules, with few exceptions, however, do not
currently provide for service by electronic mail.\6\ Continuing to
require hard copy service despite the logistical and other challenges
presented by the outbreak of COVID-19 could lead to significant delays
in FINRA proceedings. Accordingly, FINRA proposed the rule amendments
discussed below to allow, and in some instances require, FINRA to serve
documents by electronic mail.
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\6\ FINRA currently permits service by electronic mail under
some of its rules. For example, FINRA Rule 6490(d)(5) (Processing of
Company-Related Actions; Procedures for Reviewing Submissions;
Notice Issuance) permits a notice under that provision to be issued
by facsimile or electronic mail, or pursuant to Rule 9134.
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With respect to the temporary amendments that would permit FINRA to
serve certain documents by electronic mail, it is FINRA's intent to
elect service by electronic mail whenever possible. If FINRA has
knowledge that the address utilized for service is not current or not
functional (i.e., FINRA receives a bounce back or other message
indicating that there was a failure to deliver the electronic mail),
FINRA will utilize other permissible methods of service.\7\
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\7\ As indicated in the proposed rule text, and consistent with
service by mail, FINRA will consider service by email complete upon
sending of the relevant document or other information.
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In addition, to the extent that an applicant, respondent or other
party will suffer a hardship if FINRA elects service by electronic
mail, FINRA encourages the applicant, respondent or other party to
contact FINRA to discuss reasonable accommodations. FINRA noted that,
in most cases, FINRA and the relevant party, or their counsel, will
have already engaged in communications prior to the service of
documents or other information under the rules that are the subject of
this temporary proposed rule change. Accordingly, in most cases, FINRA
will already have information regarding the relevant party, or their
counsel's, preferred method of service.
The FINRA Rule 1000 Series (Member Application and Associated
Person Registration) governs, among other things, the process for (i)
applying for FINRA membership; (ii) FINRA members to seek approval of a
change in ownership, control or business operations, and (iii) an
applicant to request that FINRA's appellate body, the NAC, review a
FINRA decision rendered under the 1000 Series. In connection with these
processes, applicants and FINRA are required to file or serve certain
documents using the prescribed methods set forth in FINRA Rule 1012(a),
which do not include electronic mail.\8\ In response to current
conditions, FINRA proposes to temporarily amend Rule 1012(a)(4) to
permit FINRA to serve documents under the Rule 1000 Series by
electronic mail. The proposed rule change also temporarily amends FINRA
Rule 1015(f)(1), which requires the NAC to serve a notice of a hearing
before the NAC by facsimile or overnight courier, to allow service of
the notice by electronic mail.\9\
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\8\ FINRA Rule 1012(a) (General Provisions; Filing by Applicant
or Service by FINRA) governs the filing and service requirements for
the Rule 1000 Series.
\9\ In an effort to acknowledge the same logistical and other
challenges facing applicants, FINRA also proposed to amend Rule
1015(a) to temporarily suspend the requirement that the applicant
simultaneously file by first-class mail a copy of the request for
review pursuant to Rule 1015(a) to the district office where the
applicant filed its application.
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The FINRA Rule 9000 Series, among other things, sets forth the
procedure for FINRA proceedings for disciplining a member, associated
person, or formerly associated person. The Rule 9100 Series is of
general applicability to all proceedings set forth in the Rule 9000
Series, unless a rule specifically
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provides otherwise. FINRA Rules 9132(b),\10\ Rule 9133(b),\11\ and Rule
9146(l) \12\ provide that the documents and other information governed
by those rules be served pursuant to FINRA Rule 9134, which permits
service on the parties using the following methods: (1) Personal
service, (2) mail, or (3) courier; Rule 9134 does not permit service by
electronic mail. The proposed rule change temporarily amends Rule
9132(b) to allow FINRA to serve the relevant documents or information
by electronic mail and Rules 9133(b) and 9146(l) to require FINRA to
serve documents by electronic mail, unless the parties agree to an
alternative method of service.
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\10\ FINRA Rule 9132(b) (Service of Orders, Notices, and
Decisions by Adjudicator; How Served).
\11\ FINRA Rule 9133(b) (Service of Papers Other Than
Complaints, Orders, Notices or Decisions; How Served).
\12\ FINRA Rule 9146(l) (Motions; General).
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The FINRA Rule 9300 Series sets forth the procedures for review of
disciplinary proceedings by the NAC and FINRA Board and for
applications for Commission review. FINRA Rules 9321,\13\ 9341(c),\14\
9349(c),\15\ and 9351(e) \16\ require FINRA to serve documents in
connection with those proceedings. Service under those rules is
governed by Rule 9134, which does not permit electronic mail as a
method of service. The proposed rule change temporarily amends Rules
9321, 9341(c), 9349(c), and 9351(e) to allow for electronic mail as a
method of service.
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\13\ FINRA Rule 9321 (Transmission of Record).
\14\ FINRA Rule 9341(c) (Oral Argument; Notice Regarding Oral
Argument).
\15\ FINRA Rule 9349(c) (National Adjudicatory Council Formal
Consideration; Decision; Issuance of Decision After Expiration of
Call for Review Period).
\16\ FINRA Rule 9351(e) (Discretionary Review by FINRA Board;
Issuance of Decision After Expiration of Call for Review Period).
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The FINRA Rule 9520 Series sets forth the procedures for
eligibility proceedings and review of those proceedings by the NAC and
FINRA Board. FINRA Rules 9522(a)(4),\17\ 9524(a)(3)(A) and (B),\18\
Rule 9524(b)(3),\19\ and Rule 9525(e) \20\ require FINRA to serve
documents in connection with those proceedings, but do not allow for
electronic mail as a method of service. The proposed rule change
temporarily amends Rules 9522(a)(4), 9524(a)(3)(A) and (B), 9524(b)(3),
and Rule 9525(e) to allow for electronic mail as a method of service.
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\17\ FINRA Rules 9522(a)(4) (Initiation of Eligibility
Proceeding; Member Regulation Consideration; Service).
\18\ FINRA Rule 9524(a)(3)(A) and (B) (National Adjudicatory
Council Consideration; Transmission of Documents).
\19\ FINRA Rule 9524(b)(3) (National Adjudicatory Council
Consideration; Issuance of Decision After Expiration of Call for
Review Period).
\20\ FINRA Rule 9525(e) (Discretionary Review by the FINRA
Board; Issuance of Decision).
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The FINRA Rule 9550 Series sets forth the procedures for expedited
proceedings and the ability of the NAC to call for review a proposed
decision prepared under the Rule 9550 Series. FINRA Rule 9559(h)(2)
\21\ sets forth the timing and method of service requirements for the
parties' exchange of proposed exhibit and witness lists in advance of
an expedited proceeding.\22\ FINRA Rule 9559(q)(2) \23\ requires the
NAC to serve its decision when it issues one and FINRA Rule 9559(q)(5)
requires the NAC to serve the decision on the parties and all members
with which the respondent is associated. Rule 9559(q)(2) and (5) do not
allow for electronic mail as a method of service. The proposed rule
change temporarily amends Rule 9559(h)(2) to require FINRA to serve its
exhibit and witness lists by electronic mail, unless the parties agree
to an alternative method of service, and 9559(q)(2) and (5) to allow
for electronic mail as a method of service.
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\21\ FINRA Rule 9559(h) (Hearing Procedures for Expedited
Proceedings Under the Rule 9550 Series; Transmission of Documents).
Email is currently permitted as a method of service under Rule
9559(h).
\22\ As with the proposed temporary change to Rule 1015(a) noted
supra in footnote 9, FINRA proposes to temporarily amend FINRA Rule
9559(h) to also suspend the requirements in Rule 9559(h)(1) and (2)
that, if the specified documents are served by facsimile or email,
they must also be served by either overnight courier or personal
delivery.
\23\ FINRA Rule 9559(q) (Hearing Procedures for Expedited
Proceedings Under the Rule 9550 Series; Call for Review by the
National Adjudicatory Council).
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The FINRA Rule 9600 Series sets forth the procedures for members to
seek exemptive relief from a variety of FINRA rules. FINRA Rule
9630(e)(1) and (2) \24\ require the NAC to serve its decision pursuant
to Rule 9134, which does not allow for electronic mail as a method of
service. The proposed rule change temporarily amends Rule 9630(e) to
allow for electronic mail as a method of service.
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\24\ FINRA Rule 9630(e) (Procedures for Exemptions; Appeal;
Decision).
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FINRA believes the requested temporary relief to serve documents by
electronic mail in connection with the above referenced rules is
reasonably tailored to the needs and restraints on the organization's
operations during the COVID-19 pandemic. The proposed rule change
strikes an appropriate balance by seeking relief that will minimize
disruptions to FINRA processes, and provide necessary accommodations,
without compromising critical investor protection measures or fair
processes. For example, FINRA is not seeking relief to permit service
of complaints by electronic mail in FINRA disciplinary proceedings due
to heightened fair process concerns. Further, as noted above, FINRA
will use another permissible method of service if it has knowledge that
the address used for service by electronic mail is not current or
functional, or if FINRA is notified by the relevant party that service
by electronic mail would cause a hardship. The proposed relief to serve
some documents by electronic mail incorporated such considerations.
b. Amendments To Require Filing by Electronic Mail
FINRA's current remote work environment and related restrictions on
accessing FINRA buildings poses significant logistical and other
challenges on FINRA's ability to timely receive and process hard copy
mail. In response, the proposed rule change also temporarily amends
FINRA Rules 1012(a)(3),\25\ 6490(e),\26\ 9133(b), 9146(l),
9524(a)(3)(A) and (B), and 9559(h)(2) to require the applicant,
respondent, or requesting party, depending on the rule, to file or
serve certain documents and information by electronic mail, unless the
parties agree to an alternative method of service. FINRA's intent is to
accommodate an applicant, respondent or other party if service by
electronic mail is not feasible. The requested relief will allow FINRA
to minimize the logistical and other challenges posed by the current
conditions and assist FINRA in maintaining fair review processes and
proceedings.
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\25\ FINRA Rule 1012(a)(3), as temporarily amended, will allow
the applicant to file requested documents or information using a
method other than electronic mail upon agreement with FINRA.
\26\ FINRA Rule 6490(e) (Processing of Company-Related Actions;
Request for an Appeal to Subcommittee of Uniform Practice Code
Committee).
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c. Amendments To Provide Extensions of Time
Operating remotely, and with numerous restrictions in place, also
makes it difficult for FINRA staff to meet certain deadlines related to
the adjudicatory and review processes set forth in FINRA Rules 1015,
6490 and 9559. Accordingly, the proposed rule change requests temporary
extensions of time under these Rules.
FINRA Rule 1015 governs the process by which an applicant can
appeal an adverse decision rendered by FINRA pursuant to Rule 1014 or
1017 to the
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NAC. Rule 1015(f)(1) provides that if a hearing is requested by the
applicant or directed, the hearing must be held within 45 days after
the filing of the request with the NAC or service of the notice by the
Subcommittee.\27\ FINRA proposed to temporarily amend Rule 1015(f)(1)
to require the hearing to take place within 135 days after the filing
of the request with the NAC or service of the notice by the
Subcommittee, providing a 90-day extension to the existing 45-day
deadline. Rule 1015(i) (Subcommittee Recommendation) requires that the
Subcommittee present its recommended decision in writing to the NAC
within 60 days after the hearing held pursuant to 1015(f), and not
later than seven days before the meeting of the NAC at which the
membership proceeding shall be considered. The proposed rule change
temporarily amends Rule 1015(i) to require the Subcommittee to present
its decision in writing 150 days after the date of the hearing held
pursuant to Rule 1015(f), providing a 90-day extension to the existing
60-day deadline.
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\27\ FINRA Rule 1015(d) (Appointment of Subcommittee) requires
that the NAC (or Review Subcommittee as defined in Rule 9120)
appoint a Subcommittee to participate in the review of the appeal
and provides that the Subcommittee shall be composed of two or more
persons who shall be current or past members of the National
Adjudicatory Council or former Directors or Governors.
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Rule 6490 codifies the requirements in Exchange Act Rule 10b-17 for
issuers of a class of publicly trading securities to provide timely
notice to FINRA of certain corporate actions (e.g., dividend or other
distribution of cash or securities, stock split or reverse split,
rights or subscription offering). FINRA reviews related documentation
and, under certain circumstances, the documentation may not be
processed if it is deemed deficient. Rule 6490(e) sets forth the
process for appealing such a determination. Rule 6490(e) requires that
a Requesting Party appeal an adverse determination within seven (7)
calendar days of receiving notice of the determination under the Rule,
otherwise the determination will constitute final FINRA action. Rule
6490(e) further requires that the Subcommittee tasked with reviewing
appeals under this Rule to convene once each calendar month to consider
all appeals received during the prior month. The proposed rule change
will temporarily amend Rule 6490(e) to (i) extend the time for a
Requesting Party to file an appeal from seven calendar days to 30
calendar days, and (ii) permit the Subcommittee to convene once every
90 days instead of monthly and review appeals from within the last 90
days rather than the prior month.
Rule 9559(q)(2) sets forth the deadlines for the Subcommittee of
the NAC to review a proposed decision drafted by the Office of Hearing
Officers in connection with an expedited proceeding and issue a
recommendation to the NAC, if the proceeding is called for review. The
Subcommittee of the NAC is required to meet and conduct its review of
the proposed decision, and provide its recommendation to the NAC, no
later than 40 and 60 days, respectively, after the call for review. The
proposed rule change temporarily amends Rule 9559(q)(2) to require a
Subcommittee of the NAC to meet and conduct its review within 70 days
and make a recommendation to the NAC within 90 days, providing 30-day
extensions to the existing deadlines. These extensions of time
requested in connection with Rules 1015(f)(1) and (i), 6490(e), and
9559(q)(2) provide reasonable grace periods to adjust to current
conditions, the remote work environment and the corresponding
challenges, while maintaining fair and orderly adjudicatory and review
processes under these Rules.
d. Amendment for In-Person Attendance Requirement
FINRA Rule 9341(d) \28\ provides that oral arguments made in
connection with the review of a FINRA disciplinary proceeding take
place before the Subcommittee or, if applicable, the Extended
Proceeding Committee and requires all members of the relevant
Subcommittee or Extended Proceeding Committee to be present for the
oral argument.\29\ The proposed rule change amends Rule 9341(d) to
temporarily permit oral arguments to be conducted by video conference.
The requested relief is a reasonable accommodation to protect the
health and safety of all parties participating in these adjudicatory
processes while avoiding unnecessary delays to these proceedings.
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\28\ FINRA Rule 9341(d) (Oral Argument; Attendance Required).
\29\ See FINRA Rule 9331 (Appointment of Subcommittee or
Extended Proceeding Committee) provides that the NAC or the Review
Subcommittee shall appoint a Subcommittee or an Extended Proceeding
Committee to participate, subject to Rule 9345, in a disciplinary
proceeding appealed or called for review.
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FINRA would be able to implement the proposed rule change
immediately upon effectiveness of this proposed rule change. FINRA has
filed the proposed rule change for immediate effectiveness and has
requested that the Commission waive the requirement that the proposed
rule change not become operative for 30 days after the date of the
filing, so FINRA can implement the proposed rule change immediately.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of
Section 15A(b)(6) of the Act,\30\ 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 that the proposed rule change is also
consistent with Section 15A(b)(8) of the Act,\31\ which requires, among
other things, that FINRA rules provide a fair procedure for the
disciplining of members and persons associated with members.
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\30\ 15 U.S.C. 78o-3(b)(6).
\31\ 15 U.S.C. 78o-3(b)(8).
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The proposed rule change would grant FINRA, and in some cases
another party to a proceeding, temporary modifications to its
procedural requirements in order to allow FINRA to maintain fair
processes and protect investors while operating in a remote work
environment, and with corresponding restrictions on its activities. It
is in the public interest, and consistent with the Act's purpose, for
FINRA to receive this relief to specify filing and service methods,
extend certain time periods, and modify the format of oral argument for
FINRA disciplinary and eligibility proceedings and other review
processes in order to cope with the current pandemic conditions.
FINRA's disciplinary and eligibility proceedings and other review
processes serve a critical role in providing investor protection and
maintaining fair and orderly markets by, for example, sanctioning
misconduct and preventing further customer harm by members and
associated persons. As noted above, the proposed rule change strikes an
appropriate balance by seeking needed temporary relief in connection
with rules and requirements that do not raise heightened fairness
concerns.
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the temporary 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 is intended solely to provide temporary relief from
procedural requirements in FINRA rules
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that would otherwise impose unnecessary impediments to FINRA's
operations and FINRA's investor protection goals. FINRA does not
believe that the proposed rule change will have any material negative
effect on members and will not impose any new costs.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
FINRA has neither solicited nor received comments on the proposed
rule change.
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 \32\ and Rule 19b-
4(f)(6) \33\ thereunder.
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\32\ 15 U.S.C. 78s(b)(3)(A).
\33\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and 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.
FINRA has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
pursuant to Rule 19b-4(f)(6)(iii), the Commission may designate a
shorter time if such action is consistent with the protection of
investors and the public interest. FINRA has asked the Commission to
waive the 30-day operative delay so that the proposed rule change may
become operative immediately upon filing. As noted above, FINRA stated
that the requested relief will help minimize the impact of the COVID-19
outbreak on FINRA's operations, allowing FINRA to continue critical
adjudicatory and review processes in a reasonable and fair manner and
meet its critical investor protection goals, while also following best
practices with respect to the health and safety of its employees. FINRA
also stated that while social distancing requirements have been
implemented across the United States to benefit the health and welfare
of its citizens, certain internal processes, as well as interactions
with member firms, required by FINRA rules are more efficiently and
effectively implemented when physical proximity and full access to
necessary products and services are unhampered. FINRA noted that the
proposed rule change will provide temporary relief on many of these
prescriptions to accommodate the impact that the outbreak has had on,
among other things, FINRA employees' ability to interact internally,
with committees and with member firms. FINRA believes that, given the
impacts of the COVID-19 crisis, there is a significant benefit to
quickly implementing this proposed rule change. The Commission also
notes that the proposal provides only temporary relief from, as FINRA
states, the timing, method of service and other procedural
requirements, described above, during the period in which FINRA's
operations are impacted by COVID-19. As proposed, these changes would
be in place through June 15, 2020.\34\ FINRA also noted that the
amended rules will revert back to their current state at the conclusion
of the temporary relief period and, if applicable, any extension
thereof. For these reasons, the Commission believes that waiver of the
30-day operative delay is consistent with the protection of investors
and the public interest. Accordingly, the Commission hereby waives the
30-day operative delay and designates the proposal operative upon
filing.\35\
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\34\ As noted above, see supra note 5, FINRA states that if it
requires temporary relief from the rule requirements identified in
this proposal beyond June 15, 2020, it may submit a separate rule
filing to extend the effectiveness of the temporary relief under
these rules.
\35\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 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-2020-015 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-2020-015. 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, on business days between the
hours of 10:00 a.m. and 3:00 p.m., located at 100 F Street NE,
Washington, DC 20549. 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.
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-FINRA-2020-015
and should be submitted on or before June 17, 2020.
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\36\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-11287 Filed 5-26-20; 8:45 am]
BILLING CODE 8011-01-P