Voglio sapere a riguardo di…

Federal Register / Vol. 86, No. 209 / Tuesday, November 2, 2021 / Notices MSRB proposes an operative date of January 1, 2022.
The text of the proposed rule change is available on the MSRBs website at www.msrb.org/Rules-andInterpretations/SEC-Filings/2021Filings.aspx, at the MSRBs principal office, and at the Commissions Public Reference Room.
II. Self-Regulatory Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the MSRB 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. The MSRB has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
jspears on DSK121TN23PROD with NOTICES1

1. Purpose The MSRB continues to closely monitor the impact on municipal market participants resulting from the coronavirus disease COVID19
pandemic. In light of the operational challenges and disruptions to normal business functions as a result of the pandemic, the MSRB previously filed a proposed rule change for immediate effectiveness with the SEC in April 2020 5 and a second proposed rule change in December 2020 6 April relief and December relief. In connection with the April relief, the MSRB provided additional time for dealers to complete certain supervisory obligations, including, among other things, that office inspections due to be conducted during calendar year 2020
could be conducted by March 31, 2021, but with the expectation that dealers would conduct their inspections on-site.
The December relief allowed dealers to conduct their office inspections remotely that were due to be completed by March 31, 2021, for calendar year 2020 and those for calendar year 2021, subject to certain conditions being met.
Through stakeholder engagement, the MSRB has learned that dealers have delayed their return to office plans due 5 See Exchange Act Release No. 88694 April 20, 2020, 85 FR 23088 April 24, 2020 File No. SR
MSRB202001.
6 See Exchange Act Release No. 90621 December 9, 2020, 85 FR 81254 December 15, 2020 File No.
SRMSRB202009.

VerDate Sep<11>2014

17:42 Nov 01, 2021

Jkt 256001

to the continued pandemic and are considering or have implemented hybrid work arrangements dependent on functions and regulatory requirements. To that end, in order to address ongoing industry-wide concerns regarding having to conduct in-person office inspections while safety concerns related to the pandemic persist 7 and to align with pandemic-related regulatory relief provided by FINRA,8 the MSRB is proposing amendments to Supplementary Material .01 of MSRB
Rule G27. The proposed amendments to Supplementary Material .01 of MSRB
Rule G27 would allow dealers to satisfy their office inspection obligations by permitting dealers to conduct calendar year 2022 office inspections remotely until June 30, 2022, without the need to conduct an on-site visit to such office or location.9
The conditions required to be met for dealers to avail themselves of the option to conduct office inspections remotely remain unchanged; however, technical amendments are being proposed to paragraphs b and d to reflect the additional extension of time under the proposed rule change. Pursuant to paragraphs b and d of Supplementary Material .01 of MSRB Rule G27, for dealers that elect to conduct their office inspections remotely, such dealers must i amend or supplement their written supervisory procedures as appropriate to provide for remote inspections that are reasonably designed to assist in detecting and preventing violations of, and achieving compliance with, applicable securities laws and regulations, and with applicable Board rules; ii use remote office inspections as part of an effective supervisory system, which would include the ongoing review of activities and functions occurring at all offices and locations; and iii make and maintain the required records related to remote office inspections.
7 See The Centers for Disease Control and Prevention CDC, What You Need to Know about Variants stating, in part, that the Delta variant causes more infections and spreads faster than earlier forms of the virus that causes COVID19
available at https www.cdc.gov/coronavirus/2019ncov/variants/variant.html updated September 3, 2021.
8 On September 13, 2021, FINRA made a filing with the SEC for immediate effectiveness, noting that while some firms have taken affirmative steps to develop and implement phased-in office re-entry plans based on local conditions, there are many other firms that have not. See Release No. 3493002
September 15, 2021, 86 FR 52508 September 21, 2021 File No. SRFINRA2021023.
9 As previously noted, a temporary location established in response to the implementation of a business continuity plan is not deemed an office for purposes of complying with the office inspection obligations, under MSRB Rule G27. See supra note 5.

PO 00000

Frm 00083

Fmt 4703

Sfmt 4703

60523

The regulatory relief provided for under the proposed rule change will automatically sunset on June 30, 2022.
During this time, the MSRB will continue to monitor the effectiveness of remote office inspections on dealers overall supervisory systems and will consider more long-term regulatory initiatives that align with and promote the evolving ways dealers are doing business and supervising the activities of the dealer and its associated persons.
2. Statutory Basis The MSRB believes that the proposed rule change is consistent with Section 15Bb2C of the Exchange Act,10
which provides that the MSRBs rules shall:
be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in municipal securities and municipal financial products, to remove impediments to and perfect the mechanism of a free and open market in municipal securities and municipal financial products, and, in general, to protect investors, municipal entities, obligated persons, and the public interest.

The proposed rule change is designed to provide dealers additional time to comply with certain obligations under MSRB rules for a temporary period of time; it does not relieve dealers from compliance with their core regulatory obligations to establish and maintain a system to supervise the activities of each of its associated persons that is reasonably designed to achieve compliance with applicable rules and regulations, and with applicable MSRB
rules, which directly serve to protect investors, municipal entities, obligated persons, and the public interest. The MSRB believes extending the relief and affording dealers the option to conduct remote inspections in calendar year 2022, until June 30, 2022, is a prudent regulatory approach while continuing to serve the important investor protection objectives of the inspection requirements under these unique circumstances.
In a time when faced with unique challenges resulting from the sustained pandemic, the proposed rule change will afford dealers the ability to safeguard the health and safety of their personnel and to more effectively allocate resources to serve and promote the protection of investors, municipal entities, obligated persons and the public interest. In addition, the 10 15

E:FRFM02NON1.SGM

U.S.C. 78o4b2C.

02NON1