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Federal Register / Vol. 86, No. 160 / Monday, August 23, 2021 / Notices
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certain time periods, and modify the format of oral argument for FINRA
disciplinary and eligibility proceedings and other review processes to cope with the current pandemic conditions. In addition, extending this temporary relief will further support FINRAs disciplinary and eligibility proceedings and other review processes that serve a critical role in providing investor protection and maintaining fair and orderly markets.
The proposed rule change, which also extends the expiration date of the temporary amendments to FINRA rules set forth in SRFINRA2020027, will continue to aid FINRAs efforts to timely conduct hearings in connection with its core adjudicatory functions. Given the current and frequently changing COVID19 conditions and the uncertainty around when those conditions will see meaningful, widespread and sustained improvement, without this relief allowing OHO and NAC hearings to proceed by video conference, FINRA
might be required to postpone some or almost all hearings indefinitely. FINRA
must be able to perform its critical adjudicatory functions to fulfill its statutory obligations to protect investors and maintain fair and orderly markets.
As such, this relief is essential to FINRAs ability to fulfill its statutory obligations and allows hearing participants to avoid the serious COVID19-related health and safety risks associated with in-person hearings.
Among other things, this relief will allow OHO to conduct temporary cease and desist proceedings by video conference so that FINRA can take immediate action to stop ongoing customer harm and will allow the NAC
to timely provide members, disqualified individuals and other applicants an approval or denial of their applications.
As set forth in detail in the original filing, this temporary relief allowing OHO and NAC hearings to proceed by video conference accounts for fair process considerations and will continue to provide fair process while avoiding the COVID19-related public health risks for hearing participants.
Accordingly, the proposed rule change extending this temporary relief is in the public interest and consistent with the Acts purpose.
B. Self-Regulatory Organizations 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.
As set forth in SRFINRA2020015

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and SRFINRA2020027, the proposed rule change is intended solely to extend temporary relief necessitated by the continued impacts of the COVID19
outbreak and the related health and safety risks of conducting in-person activities. FINRA believes that the proposed rule change will prevent unnecessary impediments to FINRAs operations, including its critical adjudicatory processes, and its ability to fulfill its statutory obligations to protect investors and maintain fair and orderly markets that would otherwise result if the temporary amendments were to expire on August 31, 2021.
C. Self-Regulatory Organizations 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 19b3A of the Act 19 and Rule 19b 4f6 thereunder.20
A proposed rule change filed under Rule 19b4f6 normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b4f6iii, the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. As FINRA requested in connection with SRFINRA2020015 and related extensions,21 FINRA has also asked the Commission to waive the 30-day operative delay so that this proposed rule change may become operative immediately upon filing.
FINRA has indicated that extending the relief provided originally in SR
FINRA2020015 and SRFINRA
2020027 will continue to ease logistical and other issues by providing FINRA with needed flexibility for its 19 15

U.S.C. 78sb3A.
CFR 240.19b4f6.
21 See SRFINRA2020015, 85 FR at 31836.
Although FINRA did not request that the Commission waive the 30-day operative delay for SRFINRA2020027, FINRA did request that the Commission waive the 30-day operative delay for SRFINRA2020042 and FINRA2021006, which extended the expiration date of the temporary amendments originally set forth in SRFINRA
2020027.
20 17

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operations during the COVID19
outbreak. Importantly, extending the relief provided in these prior rule changes immediately upon filing and without a 30-day operative delay will allow 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.22 The Commission also notes that this proposal, like SR
FINRA2020015 and SRFINRA
2020027, provides only temporary relief during the period in which FINRAs operations are impacted by COVID19. As proposed, the changes would be in place through December 31, 2021.23 FINRA also noted in both SR
FINRA2020015 and SRFINRA
2020027 that the amended rules will revert back to their original state at the conclusion of the temporary relief period and, if applicable, any extension thereof.24 For these reasons, the Commission believes that waiver of the 30-day operative delay for this proposal 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.25
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.
22 See supra Item II.A.1; see also SRFINRA
2020015, 85 FR at 31833.
23 As noted above, see supra note 4, FINRA stated that if it requires temporary relief from the rule requirements identified in this proposal beyond December 31, 2021, it may submit a separate rule filing to extend the effectiveness of the temporary relief under these rules.
24 See SRFINRA2020015, 85 FR at 31833; see also SRFINRA2020027, 85 FR at 55712.
25 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule changes impact on efficiency, competition, and capital formation. See 15 U.S.C.
78cf.

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