
[Federal Register Volume 79, Number 141 (Wednesday, July 23, 2014)]
[Notices]
[Pages 42850-42852]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-17266]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72638; File No. SR-FINRA-2014-033]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating To Serving Electronically Written 
Decisions on Members Seeking Exemptive Relief Under NASD Rule 1070

July 17, 2014.
    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 9, 2014, 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. 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 is proposing to amend FINRA Rule 9620 (Decision) to permit 
FINRA staff to serve by an electronic method written decisions on 
members seeking exemptive relief from FINRA's qualification examination 
requirements under NASD Rule 1070.
    Below is the text of the proposed rule change. Proposed new 
language is in italics.
* * * * *
9000. CODE OF PROCEDURE
* * * * *
9600. PROCEDURES FOR EXEMPTIONS
* * * * *
9620. Decision
    After considering an application, FINRA staff shall issue a written 
decision setting forth its findings and conclusions. The decision shall 
be served on the Applicant pursuant to Rules 9132 and 9134, except with 
respect to written decisions for exemptive relief under NASD Rule 1070 
(Qualification Examinations and Waiver of Requirements), which shall be 
served on the Applicant electronically. After the decision is served on 
the Applicant, the application and decision may be publicly available.
* * * * *

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.

[[Page 42851]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    FINRA is proposing to amend FINRA Rule 9620 (Decision) permit [sic] 
FINRA staff to serve by an electronic method written decisions on 
members seeking exemptive relief from FINRA's qualification examination 
requirements.
    The NASD Rule 1000 Series specifies, among other things, 
registration and qualification requirements for registered 
representatives and principals associated with firms. NASD Rule 1070(d) 
authorizes FINRA, pursuant to the FINRA Rule 9600 Series, in 
exceptional cases and where good cause is shown, to waive qualification 
examinations (as specified in the NASD Rule 1000 Series) and accept 
other standards as evidence of an applicant's qualification for 
registration. Under the FINRA Rule 9600 Series, an initial application 
for relief under any FINRA rule for which exemptive relief may be 
granted, including qualification examination waivers under NASD Rule 
1070 (Qualification Examinations and Waiver of Requirements), is filed 
with the appropriate department or staff.
    All applications for qualification examination waivers under NASD 
Rule 1070 are filed by a member. As of January 16, 2009, members have 
been required to submit all applications for qualification examination 
waivers to FINRA's Department of Member Regulation (``Department'') 
through the Firm Gateway, a comprehensive web-based tool that provides 
members with consolidated access to FINRA regulatory and filing 
applications.\3\ Each member has a Firm Gateway account and an account 
administrator who can apply for a qualification examination waiver 
electronically or can give entitlement privileges to other firm 
personnel to file the application electronically. In connection with 
each qualification examination waiver application, the member 
contemporaneously provides, among other things, an email address for a 
contact person at the firm. Once submitted, the Department examines the 
merits of the application, determines what action to take, and issues a 
decision to the applicant that grants or denies the application. 
Currently, the Department serves the decision on the applicant by U.S. 
mail in accordance with FINRA Rules 9132 (Service of Orders, Notices, 
and Decisions by Adjudicator) and 9134 (Methods of, Procedures for 
Service).
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    \3\ See Regulatory Notice 08-67 (November 2008).
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    FINRA proposes that the Department use the examination-waiver email 
address provided by the applicant in Firm Gateway to serve 
electronically a written decision on the FINRA member seeking exemptive 
relief from a FINRA qualification examination. Serving written 
decisions electronically on applicants would allow the Department to 
issue decisions and allow the applicants to receive the decision more 
expeditiously. It also would reduce FINRA's costs because of 
inefficiencies and expenses associated with printing and mailing hard 
copies of written decisions and scanning hard copies of written 
decisions for electronic storage. In the event that the Department is 
unable to serve electronically a decision on a particular applicant 
because the email address provided by the applicant is no longer valid, 
the Department would serve the decision on the applicant by U.S. mail 
in accordance with FINRA Rules 9132 and 9134.
    FINRA has filed the proposed rule change for immediate 
effectiveness. The implementation date of the proposed rule change will 
be August 18, 2014. FINRA will announce the implementation date of the 
proposed rule change no later than 60 days following Commission notice 
of the filing of 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)(6) of the Act,\4\ 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 promote 
efficiency because it will enable members seeking relief under NASD 
Rule 1070 to receive more expeditiously a written decision regarding an 
associated person's request to waive a qualification examination. It is 
in the public interest, and consistent with the Act's purpose, that 
decisions concerning an associated person's qualifications for 
registration are timely resolved.
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    \4\ 15 U.S.C. 78o-3(b)(6).
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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. The proposed rule change would 
not change for any member the process of submitting electronically a 
qualification examination waiver application through Firm Gateway. The 
proposed rule change only would change the method of serving the 
decision on applicants seeking a qualification examination waiver. 
FINRA believes the proposed rule change would promote efficiency 
because qualification examination waiver applicants would receive 
decisions more expeditiously. FINRA further believes that members would 
not be adversely affected because, in the unlikely circumstance that 
the Department is unable to serve electronically a decision on the 
applicant because the email address provided by the applicant is no 
longer valid, the Department would serve the decision on the applicant 
in accordance with FINRA Rules 9132 and 9134.

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 \5\ and Rule 19b-
4(f)(6) thereunder.\6\
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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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    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.

[[Page 42852]]

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 rule-comments@sec.gov. Please include 
File Number SR-FINRA-2014-033 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-2014-033. 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 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-2014-033 and should be 
submitted on or before August 13, 2014.
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    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-17266 Filed 7-22-14; 8:45 am]
BILLING CODE 8011-01-P


