Notice2024-08688
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Retire the FINRA Rule 10000 Series (Code of Arbitration Procedure)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 24, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 80 (Wednesday, April 24, 2024)</title>
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[Federal Register Volume 89, Number 80 (Wednesday, April 24, 2024)]
[Notices]
[Pages 31229-31231]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-08688]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99991; File No. SR-FINRA-2024-005]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Retire the FINRA Rule 10000 Series (Code of
Arbitration Procedure)
April 18, 2024.
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 April 17, 2024, the 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 constituting a ``non-
controversial'' rule
[[Page 31230]]
change under paragraph (f)(6) of Rule 19b-4 under the Act,\3\ 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\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to retire the FINRA Rule 10000 Series (Code of
Arbitration Procedure) that governs arbitration and mediation claims
filed in the forum administered by FINRA Dispute Resolution Services
(``DRS'') prior to April 16, 2007.
The text of the proposed rule change is available on FINRA's
website at <a href="http://www.finra.org">http://www.finra.org</a>, at the principal office of FINRA 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, 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
The FINRA Rule 10000 Series (``old Code'') applies to arbitration
and mediation claims filed in the DRS forum prior to April 16, 2007. As
part of a comprehensive plan to reorganize and simplify the old Code,
FINRA previously separated the old Code into three sections: the Code
of Arbitration Procedure for Customer Disputes (``Customer Code''); the
Code of Arbitration Procedure for Industry Disputes (``Industry
Code''); and the Code of Mediation Procedure (``Mediation Code'')
(together, ``Codes'').\4\ The Codes apply to claims filed in the DRS
forum on or after April 16, 2007.\5\
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\4\ See Securities Exchange Act Release No. 52705 (October 31,
2005), 70 FR 67525 (November 7, 2005) (Order Approving File No. SR-
NASD-2004-013); Securities Exchange Act Release No. 55158 (January
24, 2007), 72 FR 4574 (January 31, 2007) (Order Approving File Nos.
SR-NASD-2003-158 and SR-NASD-2004-011). See also Securities Exchange
Act Release No. 58643 (September 25, 2008), 73 FR 57174 (October 1,
2008) (Order Approving File Nos. SR-FINRA-2008-021; SR-FINRA-2008-
022; SR-FINRA-2008-026; SR-FINRA-2008-028 and SR-FINRA-2008-029)
(consolidating NASD rules, including the Codes, as FINRA rules in
the consolidated FINRA rulebook).
\5\ The FINRA Rule 12000 Series contains the Customer Code; the
FINRA Rule 13000 Series contains the Industry Code; and the FINRA
Rule 14000 Series contains the Mediation Code.
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The proposed rule change would retire the old Code. All mediation
and arbitration claims that were filed in the DRS forum prior to April
16, 2007, and governed by the old Code, have closed. Thus, the old Code
is no longer applicable to any mediation or arbitration claims filed in
the DRS forum.
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)(6) of the Act,\6\ 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.
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\6\ 15 U.S.C. 78o-3(b)(6).
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The proposed rule change will protect investors and the public
interest by eliminating potential confusion and providing greater
regulatory clarity to forum users regarding the rules applicable to
claims filed in the DRS forum as it will retire the old Code, which is
no longer applicable to any arbitration or mediation claims filed in
the DRS forum.
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
retire the old Code that is no longer applicable to any arbitration or
mediation claims filed in the DRS forum and, therefore, would not have
additional economic impacts on FINRA members or their associated
persons.
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 \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
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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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#285a5d444d054b4745454d465c5b685b4d4b064f475e"><span class="__cf_email__" data-cfemail="3f4d4a535a125c5052525a514b4c7f4c5a5c11585049">[email protected]</span></a>. Please include
file number SR-FINRA-2024-005 on the subject line.
Paper Comments
<bullet> 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-2024-005. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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
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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
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of FINRA. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection.
All submissions should refer to file number SR-FINRA-2024-005 and
should be submitted on or before May 15, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-08688 Filed 4-23-24; 8:45 am]
BILLING CODE 8011-01-P
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