Foire aux questions concernant la Règle 15a 6 et Courtiers étrangers Division des opérations et des marchés: 21 mars 2013 (mise à jour le 14 avril 2014) Les réponses suivantes aux questions les plus fréquemment posées ont été préparées et représentent les opinions du personnel des SECrsquos Division de la négociation et des marchés (ldquostaffrdquo). Ils ne sont pas des règles, des règlements ou des déclarations de la SEC, et n'ont pas l'approbation ou la désapprobation de la SEC. Le personnel peut mettre à jour ces questions et réponses périodiquement. Dans chaque mise à jour, les questions ajoutées après la publication de la dernière version seront marquées avec MODIFIED ou NEW après la réponse. Renseignements: David W. Blass, avocat principal, au (202) 551 5165, Paula R. Jenson, avocate en chef adjointe, au (202) 551 5554, Joseph Furey, conseiller juridique principal, au (202) 551 5760 ou Andrew R. Bernstein, chef de succursale, au (202) 551 5565, Bureau du conseiller juridique principal (en ce qui concerne les exigences d'inscription des courtiers) Michael A. Macchiaroli, directeur associé, au (202) 551 5525, (202) 551 5521, Mark M. Attar, chef de la section, au (202) 551 5889, ou Carrie A. OrsquoBrien, conseillère spéciale, au (202) 551 5640, Bureau de la responsabilité financière (en ce qui concerne les exigences en matière de responsabilité financière), Division de la négociation et des marchés, Securities and Exchange Commission, 100, rue F, NE Washington, DC 20549. Contexte La Règle 15a 6 de la Securities Exchange Act de 1934 prévoit des exemptions conditionnelles à l'inscription des courtiers pour des courtiers étrangers 1 qui s'engagent dans certaines activités spécifiées impliquant des investisseurs américains. Ces activités comprennent: Effectuer des opérations sur titres non sollicités Fournir des rapports de recherche aux principaux investisseurs institutionnels américains et effectuer des transactions sur les titres visés avec ou pour ces investisseurs Solliciter et effectuer des transactions avec ou pour des investisseurs institutionnels américains ou des investisseurs institutionnels américains importants par l'intermédiaire d'un courtier 2 et sollicitant et effectuant des transactions avec ou pour des courtiers inscrits, des banques 3 agissant en qualité de courtier ou de négociant, certaines organisations internationales, des personnes étrangères temporairement présentes dans les citoyens USUS résidant à l'étranger et des succursales et agences étrangères de personnes américaines. 4 En adoptant la règle 15a 6, la SEC a cherché à faciliter l'accès aux marchés étrangers par les investisseurs institutionnels américains par l'intermédiaire de courtiers courtiers étrangers et la recherche qu'ils fournissent, conformément au maintien des garanties offertes par l'enregistrement des courtiers, rdquo et ldquoto 5 Depuis ce temps, le personnel a fourni des directives sur l'application de la règle 15a 6 dans diverses lettres d'exclusion de la procédure. Par exemple, dans une lettre adressée en 1996 à l'avocat de sept courtiers inscrits, le personnel a indiqué qu'ils ne recommanderaient pas l'application de la loi à la SEC si un courtier étranger affilié à l'une des sociétés mentionnées dans la lettre (chacun, un ldquoU. S. Affilié Foreign Broker Dealerrdquo) a effectué des opérations sur titres étrangers (au sens du présent Accord) avec un Fiduciaire Résidant des États Unis (tel que défini dans le présent Contrat) pour les Offshore Clients (tels que définis dans le présent Contrat) Effectuant les transactions conformément à la règle 15a 6. 6 L'année suivante, le personnel a informé les conseillers juridiques de neuf courtiers inscrits (y compris toutes les firmes parties à la lettre des sept sociétés) qu'ils ne recommanderaient pas l'application de la loi à la SEC si un courtier étranger affilié aux États Unis L'ajout de deux autres sociétés parties à la lettre) ont participé à certaines activités sans que le courtier courtier étranger affilié aux États Unis ne s'inscrive à la SEC en tant que courtier en valeurs mobilières ou effectue les transactions conformément à la règle 15a 6. 7 Entre autres choses, la Lettre des neuf sociétés: a établi une interprétation élargie de la définition de la principale institution financière américaine pour inclure toute entité, y compris tout conseiller en placements (qu'elle soit ou non enregistrée en vertu de la Loi sur les conseillers en placements) Dans le cas d'un conseiller en placement, a sous gestion) plus de 100 millions d'euros d'actifs financiers agrégés, sous réserve de certaines restrictions énoncées dans la lettre. Autorisé un courtier étranger ou son mandataire, conformément à la Règle 15a 6 A) (3) transférer des fonds ou des valeurs mobilières directement à un investisseur institutionnel américain ou à son mandataire tant que: i) les opérations concernent des titres étrangers (au sens de la lettre des sept sociétés) ou des titres du gouvernement américain ii) Le courtier négociant accepte de mettre à la disposition du courtier chaperonnant toutes les informations relatives à l'apurement et au règlement relatives à ces transferts; iii) le courtier étranger8209dealer n'agit pas en tant que dépositaire des fonds ou des titres de l'investisseur américain; le porteur n'est pas en défaut à l'égard de toute contrepartie sur une opération importante sur le marché financier et, sans la participation d'une personne associée d'un courtier chaperonnant, à (i) engager des communications orales provenant de l'extérieur du États Unis avec des investisseurs institutionnels américains (qui ne sont pas qualifiés d'importants investisseurs institutionnels américains) lorsque ces communications ont lieu en dehors des heures de négociation de la Bourse de New York, tant que les personnes étrangères associées n'acceptent pas d'ordres pour effectuer des transactions autres que celles (Ii) avoir des contacts personnels en visite aux États Unis avec des investisseurs institutionnels importants aux États Unis (cette définition étant élargie dans la lettre), à condition que le nombre de jours où ces contacts en personne se produisent Ne dépasse pas 30 par an et que les personnes étrangères associées engagées dans ces contacts n'acceptent pas d'ordres pour effectuer des opérations sur titres aux États Unis 8. De plus, le personnel a fourni des réponses à certaines questions fréquemment posées concernant l'application du règlement AC aux activités de recherche de Les courtiers courtiers étrangers, y compris les courtiers courtiers étrangers qui se prévalent de l'exemption de l'inscription des courtiers courtiers américains à la Règle 15a 6 (a) (2). 9 Nonobstant ces directives existantes, les participants au marché ont demandé au personnel de fournir des directives supplémentaires sur le fonctionnement de la règle. Certaines des questions les plus fréquemment posées sont discutées ci dessous. Réponses aux questions les plus fréquemment posées Question 1 Aux fins de l'article 15a 6 a) 4) iii), une personne étrangère serait elle considérée comme étant présente aux États Unis si elle se trouve aux États Unis pour une période déterminée De temps à des fins d'emploi, d'études ou similaires et reconnaît affirmativement qu'il désire maintenir la relation existante qui avait été établie avec le courtier étranger avant d'entrer aux États Unis. Réponse: La détermination de la présence temporaire d'une personne étrangère Aux États Unis dépendra en définitive des faits et circonstances spécifiques de chaque situation particulière. 10 Toutefois, la SEC a noté dans la Règle 15a 6 Adoption de la libération qu'une personne étrangère non autrement considérée comme résidente des États Unis en vertu de la loi applicable serait présumée être temporairement présente dans ce pays aux fins de la Règle 15a 6 (a) 4) (iii). 11 Le personnel croit que la SEC, en adoptant la règle 15a 6 (a) (4) (iii), a l'intention de permettre à un courtier étranger, sans s'inscrire auprès de la SEC, d'effectuer des transactions avec une personne étrangère située aux États Unis Avec lequel le courtier étranger avait une relation préexistante de bonne foi avant que la personne étrangère ne soit entrée aux États Unis tant que cette personne: (1) n'est pas citoyenne américaine et (2) n'est pas un résident permanent légal des États Unis (C. à d. Un détenteur de carte ldquoGreen). Question 2: Un courtier étranger choisi par un émetteur étranger pour administrer un plan d'options d'achat d'actions à l'échelle mondiale (ldquoESOPrdquo) se fonde t il sur la règle 15a 6a) 1) pour transmettre des communications concernant l'ESOP et effectuer des transactions Les courtiers étrangers qui émettent ou cherchent à administrer un ESOP ou un autre régime qui est une prestation de retraite au titre d'un salarié au sens de 17 CFR Qui est établie et administrée conformément au droit étranger pour un émetteur étranger qui est organisé en dehors des États Unis et dont le bureau principal et le lieu d'affaires sont situés à l'extérieur des États Unis, ne serait pas considérée comme Ont sollicité les employés américains ou une filiale aux États Unis, à condition que le courtier étranger: traite exclusivement de la gestion et les représentants des employés de l'émetteur étranger (tant que ces personnes ne sont pas situés aux États Unis) dans l'administration du plan et limite ses activités En ce qui concerne les personnes américaines aux activités suivantes: (i) faciliter le transfert des titres émetteurs étrangers à une personne américaine employée par l'émetteur étranger ou sa filiale américaine; (ii) envoyer les documents de régime, relevés de compte, Prospectus, mandats de procuration ou autres documents légalement requis à l'employé et (iii) la vente, le transfert ou la cession des valeurs mobilières émises à l'étranger, dans la mesure où les activités décrites aux alinéas i) à iii) Titres acquis par des personnes américaines conformément au régime d'avantages sociaux applicable. En règle générale, le personnel croit que les employés américains ne devraient pas être empêchés de participer à un régime d'avantages sociaux lorsque l'entité employant est un émetteur étranger ou une filiale américaine d'un émetteur étranger. Dans ces circonstances, le personnel considérerait généralement qu'un courtier étranger administrant le régime entretient une relation d'affaires en valeurs mobilières avec l'émetteur étranger, et toute sollicitation faite par le courtier étranger dans des circonstances ordinaires serait adressée à l'émetteur étranger, Plutôt qu'à des employés qui sont présents aux États Unis. Le personnel ne considérerait pas qu'un tel comportement implique la sollicitation d'une personne américaine même si le courtier étranger sollicite activement l'émetteur étranger dans le cadre de ses efforts pour devenir administrateur du régime, Tant que la sollicitation active du courtier étranger est effectuée entièrement en dehors des États Unis et n'implique pas les employés de la société qui sont situés aux États Unis. En revanche, le personnel pourrait considérer un courtier étranger qui a dépassé les circonstances décrites dans Cette FAQ comme ayant sollicité une personne américaine. Comme l'a expliqué la SEC lors de l'adoption de la règle 15a 6, la transmission délibérée d'informations, d'opinions ou de recommandations aux investisseurs aux États Unis, qu'ils soient dirigés à des particuliers ou à des groupes, pourrait conclure que le courtier étranger a sollicité ces investisseurs 12 Enfin, dans la mesure où le courtier étranger n'est pas en mesure de se prévaloir de la règle 15a 6 (a) (1) à ces fins, il ne serait pas exclu de se prévaloir d'une autre exemption applicable de l'inscription par le courtier, Tel que l'article 15a 6 a) 4) iii), qui permet aux courtiers étrangers d'effectuer des opérations avec une personne étrangère temporairement présente aux États Unis avec laquelle le courtier étranger a une relation préexistante de bonne foi 13 Question 2.1: La réponse à la question 2 serait elle différente si des personnes américaines participant à un régime d'avantages sociaux d'un émetteur étranger recevaient, détenaient ou transféraient leurs actions dans les titres émis par des émetteurs étrangers en vertu d'un American Depositary Receipt parrainé LdquoADRrdquo) Réponse: Non. Le personnel reconnaît que de nombreuses entreprises utilisent des ADR pour lever des capitaux ou pour établir une présence commerciale aux États Unis pour diverses raisons juridiques ou opérationnelles. Comme il est expliqué dans la réponse à la question 2, le personnel croit généralement que les employés des États Unis ne devraient pas être empêchés de participer à un régime d'avantages sociaux lorsque l'entité employant est un émetteur étranger ou une filiale américaine d'un émetteur étranger. Par conséquent, le personnel croit qu'un courtier étranger qui administre un régime d'avantages sociaux des émetteurs étrangers conformément aux restrictions énoncées dans la réponse à la question 2 ne serait pas considéré comme ayant sollicité une personne américaine dans la mesure où les distributions ou les transferts de fonds étrangers Les titres issuerrsquos ont été constitués dans le cadre d'un programme ADR parrainé, plutôt que directement dans des actions des titres issuerrsquos. 14 Question 2.2: Outre les mesures décrites dans la réponse à la question 2, un courtier étranger peut, en sa qualité d'administrateur d'un régime d'avantages sociaux des émetteurs étrangers et conformément aux modalités du régime, envoyer des renseignements Et les instructions de l'émetteur ou d'un tiers à un employé américain, recueillir les réponses appropriées de l'employé américain, et transmettre des réponses et d'autres instructions à l'émetteur (ou son fournisseur designeeservice) Réponse: Oui. Un courtier étranger peut exercer ces activités en sa qualité d'administrateur d'un régime d'avantages sociaux des émetteurs étrangers et conformément aux modalités du régime. Par exemple, si un émetteur étranger effectue une offre de droits qui est mise à la disposition de tous les actionnaires (y compris les employés détenant des actions aux termes des modalités d'un régime d'avantages sociaux), l'émetteur (ou son prestataire de services désignés) Documents et instructions relatifs à l'offre de droits au courtier étranger en sa qualité d'administrateur, en particulier si le courtier étranger détient des titres en qualité de prête nom pour les employés. Dans ce cas, l'administrateur peut transmettre ces documents à un employé américain participant au régime d'avantages sociaux, recevoir les réponses de l'employé américain et transmettre ces réponses à l'émetteur (ou à son fournisseur de services désignés). De même, un courtier étranger qui agit à titre d'administrateur d'un régime d'avantages sociaux d'émetteurs étrangers qui comprend des options peut recevoir et transmettre les demandes des employés américains d'exercer leurs options. En outre, un courtier étranger, en tant qu'administrateur du régime et / ou détenteur de l'attestation de la valeur mobilière applicable, peut transmettre à un participant au régime américain des documents de procuration, des formulaires d'instructions de vote et tout autre document et instruction similaire. Il peut également recevoir des instructions et des réponses du participant au régime des États Unis et agir conformément à ces instructions. Il est toutefois important de souligner que, dans chacun des exemples décrits ci dessus (et dans tous les autres scénarios qui suivent le même schéma), les actions des courtiers étrangers doivent être passives, ne comporter aucun autre indice de sollicitation et être prises seulement Conformément aux modalités du régime d'avantages sociaux des émetteurs étrangers ou du régime complémentaire (par exemple, l'offre de droits). Question 2.3: Un courtier en valeurs mobilières étranger, en sa qualité d'administrateur d'un régime d'avantages sociaux des émetteurs étrangers, peut détenir des titres à titre de prête nom pour: 1 ° le conjoint ou le partenaire domestique d'un employé américain participant dans un compte distinct du (2) un ancien employé américain ou, si cet employé est décédé, l'héritier légal du salarié Réponse: Oui, dans chaque situation, le courtier étranger peut détenir des titres à titre de prête nom tant que les titres sont reçus et maintenus conformément aux Les modalités et conditions du régime d'avantages sociaux des émetteurs étrangers. Par exemple, un régime d'avantages sociaux des émetteurs étrangers peut expressément permettre aux employés de transférer les titres reçus dans le cadre du régime à un conjoint ou un partenaire domestique, par exemple par l'entremise d'un don ou d'un ordre de relations domestiques. De même, le régime d'avantages sociaux peut préciser les procédures à suivre à la suite de la séparation ou du décès d'un employé. Toutefois, un tel compte ne peut contenir que des titres (ou des droits y afférents) reçus dans le cadre d'une participation des employés au régime d'avantages sociaux des employés pendant que l'employé travaillait pour l'émetteur étranger. En outre, le courtier en valeurs mobilières étranger ne peut solliciter ni effectuer d'opérations sur titres supplémentaires dans ces comptes, à l'exception des activités visées dans la réponse aux questions 2 et 2.2 de ces questions fréquemment posées. Question 2.4: Un courtier étranger peut il, en sa qualité d'administrateur d'un régime d'avantages sociaux des émetteurs étrangers, mettre à la disposition des employés des États Unis un site Web protégé par mot de passe pour gérer leurs comptes? Bien qu'une transaction effectuée sur un site Web de courtiers étrangers soit ordinairement considérée comme une transaction sollicitée aux fins de l'article 15a 6 (a) (1) 15, le personnel ne croit pas qu'elle serait incompatible avec une déclaration antérieure de la SEC si, Dans le seul but d'agir comme administrateur d'un régime d'avantages sociaux des émetteurs étrangers, un courtier étranger a mis à la disposition de tous les employés participants (y compris des personnes des États Unis) un site Web protégé par mot de passe pour gérer leurs comptes. Cette position est conditionnée (1) au fait que le courtier étranger n'utilise pas le site Web pour solliciter des opérations sur titres auprès de personnes américaines ou pour effectuer des opérations sur des titres qui n'ont pas été reçus dans le cadre du régime d'avantages sociaux des employés américains 2) le site Web du régime d'avantages sociaux des employés est entièrement séparé du site Web principal des courtiers étrangers et non accessible par un lien figurant sur celui ci et (3) le site Web du régime ne lie ni renvoie les participants au courtier étranger site Internet. Question 3: Si un courtier étranger effectue une transaction non sollicitée pour le compte d'un investisseur américain en vertu de la règle 15a 6 (a) (1), le courtier étranger peut envoyer des confirmations et des relevés de compte à l'investisseur américain Avec une telle transaction Réponse: Oui. Le personnel ne considérerait pas qu'un courtier étranger aurait sollicité un investisseur américain uniquement parce que le courtier étranger, dans le cadre d'une opération non sollicitée pour un investisseur américain en vertu de la règle 15a 6a) 1), fournit à l'investisseur américain Avec une confirmation de la transaction et des relevés de compte périodiques. De même, un courtier étranger peut fournir à un investisseur américain, avec ou pour lequel le courtier étranger effectue une transaction non sollicitée, des documents liés à la transaction qui sont exigés en vertu du droit étranger, comme un prospectus, une procuration ou un avis de confidentialité . Un courtier étranger8209dealer qui cherche à se prévaloir de la règle 15a 6 (a) (1) ne peut toutefois fournir à un investisseur américain aucun document comprenant de la publicité ou autre matériel destiné à induire une opération de valeurs mobilières ou une entreprise transactionnelle pour le courtier étranger, Revendeur ou ses filiales. Question 4: La règle 15a 6 (a) (3) (iii) (A) (2) oblige un courtier courtier chaperonnant à émettre toutes les confirmations et déclarations requises à l'investisseur institutionnel américain ou aux grands investisseurs institutionnels américains en ce qui concerne les transactions Effectuée en vertu de celle ci. Si le droit étranger l'exige, le courtier étranger peut envoyer les confirmations et les relevés de compte directement aux contreparties américaines. Réponse: Oui. Dans la mesure requise par le droit étranger ou selon les exigences des politiques et procédures internes de l'entreprise applicables à ses activités commerciales mondiales, un courtier étranger peut envoyer des confirmations et des relevés de compte directement aux contreparties américaines. Toutefois, le courtier courtier chaperonnant a le devoir de s'assurer que les confirmations et les relevés de compte sont envoyés à l'investisseur qui sont conformes à toutes les exigences applicables des États Unis, y compris la règle 10b 10 En vertu de la Loi sur les changes et les règles applicables de l'organisation autonome 8209. De plus, toute confirmation ou relevé de compte envoyé à une contrepartie américaine par un courtier étranger pour le compte d'un courtier en courrier chaperonnant doit clairement identifier le courtier américain au nom duquel le document est envoyé. Question 4.1: La réponse à la question 4 signifie t elle qu'un courtier chaperonnant pourrait satisfaire à ses obligations en vertu de la règle 15a 6a) 3) iii) A) 2) en fournissant les confirmations et Courtier courtier étranger Réponse: Oui. Un courtier courtier chaperonnant peut demander à un courtier étranger de fournir à l'investisseur institutionnel américain ou à l'investisseur institutionnel principal des États Unis (le cas échéant) les confirmations et déclarations requises en application de la règle 15a 6a) 3) iii) (A) (2) indépendamment du fait que la loi étrangère oblige le courtier étranger à fournir ces documents aux contreparties américaines. 16 À cet égard, le personnel considère que la préparation et la remise de la confirmation ou de la déclaration sont analogues à celles dans lesquelles un courtier inscrit utilise un tiers fournisseur de services pour préparer et envoyer ces documents aux clients. Toutefois, comme il est indiqué dans la réponse à la question 4, le courtier chaperonier conserve toujours l'obligation de s'assurer que toute confirmation ou relevé de compte adressé à un investisseur institutionnel américain ou à un investisseur institutionnel américain majeur est conforme à toutes les exigences applicables aux États 10 en vertu de la Loi sur les bourses et des règles applicables de l'organisme d'autoréglementation. En outre, le fait de dépendre du courtier étranger pour préparer et envoyer des confirmations ou des relevés de compte ne libérerait en aucun cas le courtier chaperon de sa responsabilité ultime en ce qui concerne le respect des obligations légales ou réglementaires en vertu des lois fédérales sur les valeurs mobilières. Question 5: Un courtier étranger peut il distribuer de la recherche directement aux principaux investisseurs institutionnels aux États Unis conformément à la règle 15a 6 (a) (2) sans intermédiation ni autre implication d'un courtier inscrit dans le cadre de la distribution des rapports, Telles que l'examen, l'approbation ou la conservation des rapports de recherche ainsi distribués ou le maintien des dossiers Réponse: Oui. La règle 15a 6 (a) (2) permet à un courtier étranger de fournir des rapports de recherche aux principaux investisseurs institutionnels américains et d'effectuer des opérations sur les titres discutés dans les rapports avec ou pour les investisseurs institutionnels américains importants à condition que certaines conditions soient remplies . 17 La règle n'exige pas que la distribution soit faite par un courtier inscrit, même si le courtier étranger a un arrangement de chaperon avec un courtier inscrit. En outre, le courtier chaperon n'aurait aucune obligation à l'égard d'un rapport de recherche si le courtier chaperonnier n'était pas impliqué dans la distribution (c. à d. Que la recherche était distribuée directement par le courtier étranger aux principaux investisseurs institutionnels américains ) Et il ne serait pas tenu de conserver une copie d'un rapport de recherche qu'elle n'a jamais possédé. Il est toutefois important de garder à l'esprit que si le courtier étranger 8209dealer a un arrangement de chaperon avec un courtier inscrit qui satisfait aux exigences de la règle 15a 6 (a) (3), toute transaction avec le courtier étranger Les titres dont il est question dans les rapports de recherche doivent être effectués uniquement par l'entremise du courtier courtier chaperonnant conformément aux exigences de l'alinéa a) (3). La Règle 15a 6 (a) (3) exige notamment que le courtier chaperonier entretienne tous les livres et registres relatifs aux transactions effectuées en vertu de cette loi, y compris ceux exigés par les Règles 17a 3 et 17a 4 de la Loi sur les Bourses. En conséquence, dans la mesure où un courtier chaperonnant obtient une copie d'un rapport de recherche distribué directement aux principaux investisseurs institutionnels américains par un courtier étranger conformément à la Règle 15a 6 (a) (2) (quelle que soit la source à partir de laquelle Il a été obtenu), ce rapport de recherche devrait être conservé par le courtier courtier chaperonnant à la lumière de son obligation d'effectuer des opérations sur les titres pertinents comme décrit ci dessus. Question 6: La position du personnel dans la lettre des neuf sociétés s'applique t elle généralement aux courtiers étrangers qui ne sont pas affiliés à un courtier inscrit? Réponse: Oui. Bien que la position de non action dans la lettre des neuf sociétés ait été fondée sur des observations concernant des faits et des conditions particulières qui comprenaient l'affiliation entre les neuf courtiers inscrits nommés dans la lettre et leurs courtiers étrangers affiliés, Lettre à demander à un courtier étranger qui a un arrangement de chaperon avec un courtier inscrit non affilié. 18 Question 7: Le point de vue du personnel est il étendu à l'égard de l'expression «la majeure partie des investisseurs institutionnels» énoncée dans la lettre des neuf sociétés s'applique à toutes les dispositions de la règle 15a 6 dans lesquelles ce terme est utilisé Réponse: Oui. Les membres du personnel ont une vision élargie du terme «l 'institutionnalité des investissements institutionnels» des États Unis s'applique à toutes les dispositions de la règle 15a 6, y compris les alinéas a) 2) et a) 3) de la règle. 19 Question 8: La position du personnel dans la Lettre des sept sociétés s'applique t elle généralement aux courtiers courtiers étrangers qui ne sont pas affiliés à un courtier inscrit? Réponse: Oui. Pour des raisons semblables à celles évoquées dans la réponse à la question 6, le personnel considère que la position prise dans la Lettre des sept sociétés s'applique à un courtier étranger, que le courtier inscrit avec lequel il a un arrangement de chaperon soit affilié . Question 8.1: La réponse à la question 8 signifie t elle qu'un courtier étranger serait tenu d'avoir un arrangement de chaperonnage avec un courtier inscrit afin de se fier à la réponse des sept sociétés Réponse: Non. Le poste du personnel dans les sept sociétés La lettre s'applique sans égard à la question de savoir si le courtier étranger a un arrangement de chaperon avec un courtier inscrit. Question 9: Un courtier étranger peut il se prévaloir de l'exemption prévue à la règle 15a82096 (a) (1) pour effectuer plus d'une transaction de titres non sollicités au nom d'un seul investisseur américain Réponse: Le personnel ne verrait normalement pas une seule transaction sur titres Effectuée par un courtier étranger pour le compte d'un investisseur américain conformément à la règle 15a 6 (a) (1), qui interdit à ce courtier étranger de se fier à cette même autorité pour effectuer une ou plusieurs autres opérations sur titres non sollicitées pour le compte Du même investisseur américain, en l'absence d'autres indices de sollicitation. Cela s'explique en grande partie par l'accent que la SEC a placé dans la Règle 15a 6 portant adoption de l'importance d'analyser les efforts et les activités d'un courtier étranger pour déterminer s'il y a eu sollicitation plutôt que se concentrer uniquement sur le nombre d'opérations sur titres effectuées Par un courtier étranger. Plus précisément, la SEC adopte une vue d'ensemble de ce qui constitue une sollicitation. Dans le cadre de l'enregistrement des courtiers, la SEC considère généralement les questions de sollicitation, y compris les efforts positifs d'un courtier ou d'un courtier visant à induire des activités transactionnelles pour le courtier ou ses sociétés affiliées. La sollicitation inclut les efforts visant à induire une transaction unique ou à développer une relation commerciale en valeurs mobilières continue. Dans la Règle 15a 6 Adoptant la Libération, la SEC a fourni des exemples de conduite qu'elle considérerait comme une sollicitation par un courtier étranger, y compris: D'un courtier à un client encourageant l'utilisation du courtier pour effectuer des transactions La publicité dirigée vers les États Unis de celles ci fonctionnent comme un courtier ou un market maker et recommander l'achat ou la vente de titres particuliers, avec l'anticipation que le client Exécuter le commerce recommandé par le courtier. En même temps, toutefois, le personnel considérerait qu'une série de transactions fréquentes ou un nombre important de transactions entre un courtier étranger et un investisseur américain est révélatrice d'une sollicitation par l'établissement d'une relation d'affaires de titres de sociétés. Enfin, La SEC, en adoptant la règle 15a 6, a également expliqué qu'en raison de la question de l'expansion, de la spécificité des faits et de la nature variable de la notion de sollicitation, elle estime que la question de la sollicitation est mieux traitée par le personnel au cas par cas, Question 10: Quel est le capital net minimum requis pour un courtier inscrit qui a conclu un accord de chaperon avec un courtier en valeurs mobilières étranger en vertu de la règle 15a 6 a) (3) Réponse: Le courtier inscrit qui conclut un arrangement de chaperon avec un courtier étranger en vertu de la règle 15a 6a) 3) est assujetti à un minimum de capital net d'au moins 250 000 , À moins que le courtier chaperonnier n'ait conclu une convention de portefeuille entièrement divulguée avec un autre courtier inscrit qui a accepté par écrit de se conformer aux règles de responsabilité financière du courtier courtier SECrsquos relativement à l'entente de chaperon. Un courtier courtier chaperonnant qui a conclu une telle convention de rachat est assujetti à un minimum de capital net de 5 000 ou à tout autre montant supérieur à celui qui serait exigé en vertu de la règle 15c3 1 en fonction des activités du courtier négociant. Question 11: Quelle exigence minimale de capital net s'applique à un courtier inscrit agissant en qualité de chaperon auprès d'un courtier en valeurs mobilières étranger si l'entreprise étrangère de courtage en vertu de la règle 15a 6 est limitée aux services de conseil MA à une contrepartie américaine ou non Contrepartie américaine envisageant l'acquisition d'une société Réponse: Si l'activité des courtiers étrangers en vertu de la règle 15a 6 se limite à donner des conseils à un investisseur institutionnel américain ou à un important investisseur institutionnel américain envisageant une acquisition d'une société, L'exigence minimale de capital net, en vertu de cette activité, serait de 5 000 ou de tout autre montant supérieur à celui qui serait exigé en vertu de la règle 15c3 1 en fonction des activités des courtiers en valeurs mobilières. Question 11.1: Quelle exigence minimale de capital net s'applique à un courtier inscrit agissant comme chaperon auprès d'un courtier étranger si l'entreprise étrangère de courtage en vertu de la règle 15a 6 se limite à fournir des services de placement privé aux États Investisseur ou investisseur institutionnel important aux États Unis Réponse: Si l'activité des courtiers étrangers en vertu de la règle 15a 6 se limite à donner des conseils sur les services de placement privés à un investisseur institutionnel américain ou à un investisseur institutionnel important aux États Unis, Exigence, en vertu de cette activité, serait de 5 000 ou de tout autre montant supérieur à celui qui serait exigé en vertu de la règle 15c3 1 en fonction des activités des courtiers en valeurs mobilières. Question 12: Can a registered introducing broker dealer act as chaperone for a foreign broker dealer under Rule 15a 6(a)(3) and rely on all the terms of the Nine Firms Letter if the registered broker dealer has in effect a fully disclosed carrying agreement with another registered broker8209dealer that has agreed to comply with the financial responsibility rules Answer: Yes. The registered broker dealer can act as a chaperone for a foreign broker dealer under Rule 15a 6(a)(3) and rely on the Nine Firms Letter if it has in effect a fully disclosed carrying agreement with another registered broker dealer that has agreed, in writing, to comply with the SECrsquos broker dealer financial responsibility rules with respect to the chaperoning arrangement. In such an arrangement, the registered broker dealer would be subject to a minimum net capital requirement of 5,000, or such greater amount as would be required under Rule 15c3 1 based on the broker dealerrsquos activities. Question 13: Can a registered introducing broker dealer act as chaperone for a foreign broker dealer under Rule 15a 6(a)(3) and rely on all the terms of the Nine Firms Letter if the registered broker dealer has a minimum net capital requirement of 100,000 in accordance with Rule 15c382093(k)(2)(i) Answer: No. An introducing broker dealer cannot rely on the Rule 15c382093(k)(2)(i) exception and maintain net capital of 100,000 while acting as a chaperone for a foreign broker dealer under Rule 15a 6(a)(3) and relying on the Nine Firms Letter. As stated in response to question 10, a registered broker dealer that enters into a chaperoning arrangement with a foreign broker dealer under Rule 15a 6(a)(3) is subject to a minimum net capital requirement of at least 250,000, unless the chaperoning broker dealer has entered into a fully disclosed carrying agreement with another registered broker dealer that has agreed, in writing, to comply with the SECrsquos broker dealer financial responsibility rules with respect to the chaperoning arrangement. 23 A broker dealer that maintains minimum net capital of at least 250,000 and relies on the Rule 15c3 3(k)(2)(i) exception or a broker dealer that is fully computing under Rule 15c3 3 may operate under the Nine Firms Letter. This net capital requirement is based on the chaperonersquos responsibilities under Rule 15a 6(a)(3)(iii). Question 14: What is the minimum net capital required for a registered broker8209dealer that has entered into an arrangement under Rule 15a 6(a)(3) with a foreign broker dealer to act as a chaperone for DVPRVP transactions with institutional investors Answer: A broker dealer acting as a chaperone under Rule 15a 6(a)(3) for DVPRVP transactions with institutional investors has a minimum net capital requirement of at least 250,000. The chaperoning broker8209dealer cannot rely on the 100,000 minimum net capital requirement set forth in Rule 15c3 1(a)(2)(ii) that is available to broker dealers exempt from Rule 15c3 3 under paragraph (k)(2)(i) of that rule. This net capital requirement is based on the chaperonersquos responsibilities under Rule 15a 6(a)(3)(iii). Question 15: Is a registered broker dealer that acts as a chaperone in connection with securities transactions with a U. S. institutional investor or a major U. S. institutional investor required to take a net capital charge for failed transactions, even if the foreign broker dealer is required to take a fails charge under foreign law Answer: Yes, unless the chaperoning broker dealer has entered into a fully disclosed carrying agreement with another registered broker dealer as described in the response to question 10, in which case the carrying broker dealer would be required to take the net capital charge for failed transactions. The existence of a carrying agreement does not relieve the chaperoning broker dealer from maintaining books and records that identify open trades and failed transactions. The chaperoning broker dealer can obtain this information directly from the foreign broker dealer or another party but is responsible for ensuring that its books and records are accurate. Question 16: What other recordkeeping obligations apply to a registered broker8209dealer that has entered into a chaperoning agreement with a foreign broker dealer pursuant to Rule 15a 6(a)(3) Answer: A registered broker dealer acting as a chaperone for a foreign broker dealer must comply with Rules 17a 3 and 17a 4. A chaperoning broker dealer is required to make and keep current books and records that reflect trades between the U. S. customer and the foreign broker dealer, including, but not limited to, transaction records and failed transaction records. The chaperoning broker dealer may obtain this information from the foreign broker dealer or another source however, the chaperoning broker dealer is responsible for the accuracy of its books and records. For example, a chaperoning broker dealer may download information for its books and records, such as its ledger, from the foreign broker dealer provided that the chaperoning broker dealers books and records are kept current. Question 17: Does the 30 day limit referred to in the Nine Firms letter that allows unchaperoned in person contacts with major U. S. institutional investors during visits to the U. S apply to the foreign broker dealer (the entity) or per associated person of a foreign broker dealer Answer: The 30 day limit referred to in the Nine Firms Letter applies per foreign associated person. This means that the number of days each foreign associated person of a foreign broker dealer could participate in unchaperoned meetings in the U. S. is limited to no more than 30 days per year. 24 In other words, a foreign associated person of a foreign broker dealer may, without the participation or physical presence of an associated person of the chaperoning broker dealer, have in person contacts during visits to the U. S. with major U. S. institutional investors so long as: the number of days on which such unchaperoned in person contacts occur does not exceed 30 per year and the foreign associated persons engaged in such in person contacts do not accept orders while in the U. S. to effect securities transactions. Question 18: Does the definition of ldquomajor U. S. institutional investorrdquo include entities owned exclusively by other major U. S. institutional investors Answer: Yes. Staff interprets the definition of ldquomajor U. S. institutional investorrdquo, as expanded by the staff in the Nine Firms Letter, to include any entity, all of the equity owners of which are major U. S. institutional investors. In other words, any entity whose equity securities are held entirely by one or more entities, including any investment adviser (whether or not registered under the Investment Advisers Act), that each individually owns or controls (or, in the case of an investment adviser, has under management) in excess of 100 million in aggregate financial assets), would itself be a major U. S. institutional investor for purposes of Rule 15a 6. Staff believes that this position is consistent with prior Commission treatment of similar terms. 25 (NEW 04142014) 1 Rule 15a 6(b)(3) defines foreign broker dealer to include ldquoany non8209U. S. resident person (including any U. S. person engaged in business as a broker or dealer entirely outside the United States, except as otherwise permitted by this rule) that is not an office or branch of, or a natural person associated with, a registered broker or dealer, whose securities activities, if conducted in the United States, would be described by the definition of lsquobrokerrsquo or lsquodealerrsquo in sections 3(a)(4) or 3(a)(5) of the Exchange Act. rdquo 2 For purposes of these FAQs, the term ldquochaperoning broker dealerrdquo means a registered broker dealer that satisfies all of the requirements set forth in Rule 15a 6(a)(3)(iii) including, among other things, effecting transactions, issuing confirmations, maintaining books and records, participating in oral communications, and obtaining certain representations and consents. 3 As explained in the release adopting Rule 15a 6, the term ldquobankrdquo is defined in section 3(a)(6) of the Exchange Act to mean a bank directly regulated by U. S. state or federal bank regulators. Accordingly, a foreign bank is excluded from this term except to the extent that the ldquoforeign bank establishes a branch or agency in the United States that is supervised and examined by a federal or state banking authority and otherwise meets the requirements of section 3(a)(6).rdquo See Registration Requirements for Foreign Broker Dealers . Exchange Act Release No. 27017 (July 11, 1989), 54 FR 30013, n.16 (July 18, 1989) (ldquoRule 15a 6 Adopting Releaserdquo) (noting, however, that the determination whether any particular financial institution meets the requirements of section 3(a)(6) is the responsibility of the financial institution and its counsel) (internal citations omitted). 4 17 C. F.R. sect 240.15a 6. 5 Rule 15a 6 Adopting Release at 54 FR 30013 see also Registration Requirements for Foreign Broker Dealers . Exchange Act Release No. 25801 (June 14, 1988), 53 FR 23645 (June 23, 1988). 6 See Letter re: Transactions in Foreign Securities by Foreign Brokers or Dealers with Accounts of Certain Foreign Persons Managed or Advised by U. S. Resident Fiduciaries from Catherine McGuire, Chief Counsel, Division of Market Regulation to Giovanni P. Prezioso, Cleary, Gottlieb, Steen amp Hamilton, dated January 30, 1996 (ldquoSeven Firms Letterrdquo). 7 See Letter re: Securities Activities of U. S. Affiliated Foreign Dealers from Richard R. Lindsey, Director, Division of Market Regulation to Giovanni P. Prezioso, Cleary, Gottlieb, Steen amp Hamilton, dated April 9, 1997 (quotNine Firms Letterquot), available at sec. govdivisionsmarketregmr noactioncleary040997.pdf. 9 See Responses to Frequently Asked Questions Concerning Regulation Analyst Certification, available at sec. govdivisionsmarketregmregacfaq0803.htm . 10 In addition to requiring that the foreign customer be ldquotemporarily present in the United States, rdquo Rule 15a 6(a)(4)(iii) also provides that the foreign broker dealer must have had a bona fide, pre existing relationship with the foreign customer before such person entered the U. S.rdquo See 17 C. F.R. sect 240.15a 6(a)(4)(iii). While the rule does not expressly require the type of affirmative acknowledgement described in the question, such representation would likely be useful in determining whether a bona fide, pre existing relationship exists. 11 See Rule 15a 6 Adopting Release at 54 FR 30030. This presumption would be subject to rebuttal in light of all of the facts and circumstances surrounding the foreign persons presence in the U. S. 12 Rule 15a 6 Adopting Release at 54 FR 30021. 13 See 17 C. F.R. sect 240.15a 6(a)(4)(iii) and Rule 15a 6 Adopting Release at 54 FR 30030 31. See also question 1 and the accompanying response. 14 Staff notes, however, that the position set forth in this response is limited to the facts described in the question and does not otherwise modify any requirements or restrictions applicable to the trading of ADRs pursuant to any existing statute, regulation or legal interpretation, including the limitation to the definition of ldquoForeign Securityrdquo contained in the Seven Firms Letter. See supra note 6. 15 See Interpretation Re: Use of Internet Web Sites To Offer Securities, Solicit Securities Transactions, or Advertise Investment Services Offshore, Exchange Act Release No. 39779, (March 23, 1998), 63 FR 14806, 14813 (March 27, 1998) (explaining that ldquobecause a securities firmrsquos Web site itself typically is a solicitation, orders routed through the Web site would not be considered lsquounsolicitedrsquordquo for purposes of Rule 15a 6(a)(1)). 16 The Staff takes no position with respect to any requirements of, or restrictions contained in, non U. S. law, including as it would relate to the delivery of confirmations and statements to any U. S. person. 17 See 17 C. F.R. sect 240.15a 6(a)(2) Rule 15a 6 Adopting Release at 54 FR 30022 23. Specifically, the research reports must not recommend the use of the foreign broker dealer to effect trades in any security, and the foreign broker dealer may not initiate contact with the major U. S. institutional investor to follow up on the research reports or otherwise induce or attempt to induce the purchase or sale of any security by the major U. S. institutional investor. Moreover, a foreign broker dealer may not provide research to U. S. persons pursuant to any express or implied understanding that those U. S. persons will direct commission income to the foreign broker dealer ( i. e. . ldquosoft dollarrdquo arrangements). 18 The staff believes that this view is consistent with the SECrsquos decision to adopt Rule 15a 6(a)(3) without, as initially proposed, requiring ldquoany affiliation between the foreign broker dealer and the registered broker dealer through ownership or control. rdquo See Rule 15a 6 Adopting Release at 54 FR 30025 (noting that the rule, as proposed, would have required such affiliation). Notwithstanding this view, the U. S. and foreign broker dealers would still have to meet the other conditions of the Nine Firms Letter. 19 See Letter re: Securities Activities of U. S. Affiliated Foreign Dealers from Catherine McGuire, Chief Counsel, Division of Market Regulation to Giovanni P. Prezioso, Cleary, Gottlieb, Steen amp Hamilton, dated April 28, 1997 (clarifying the no action position taken in Nine Firms Letter). 20 Rule 15a 6 Adopting Release at 54 FR 30017 30018 (footnote omitted). 21 See id . The SEC has previously indicated that the exception in Rule 15a 6(a)(1) for unsolicited trades was designed to reflect the view that ldquoU. S. persons seeking out unregistered foreign broker dealers outside the U. S. cannot expect the protection of U. S. broker dealer standards. rdquo See Rule 15a 6 Adopting Release at 54 FR 30031. In this regard, staff believes that if a foreign broker dealer regularly effects transactions directly with or for a U. S. investor, the investor might reasonably expect to be protected by U. S. laws, regulations and supervisory structures applicable to registered broker dealers. 22 Rule 15a 6 Adopting Release at 54 FR 30021. 23 See also the exception in the response to question 11. 24 The staff, however, reminds firms that the ability to participate in unchaperoned meetings on a per foreign associated person basis should not be structured in such a way that the foreign broker dealer uses a rotating series of individuals to create a de facto quotofficequot or presence in the U. S. ( e. g. . a presence that would constitute a quotpermanent establishmentquot of the foreign broker dealer for U. S. tax purposes) or to offer a continuous U. S. presence to deal with a specific major U. S. institutional investor or group of major U. S. institutional investors. See Rule 15a 6(b)(3) (definition of quotforeign broker or dealerquot). 25 For example, Rule 144A under the Securities Act of 1933 defines the term ldquoqualified institutional buyerrdquo to include, among other things, ldquoany entity, all of the equity owners of which are qualified institutional buyers, acting for its own account or the accounts of other qualified institutional buyers. rdquo See 17 C. F.R. 230.144A(a)(1)(v).17 CFR 240.15a 6 Exemption of certain foreign brokers or dealers. xA7 240.15a 6 Exemption of certain foreign brokers or dealers. (a) A foreign broker or dealer shall be exempt from the registration requirements of sections 15(a)(1) or 15B(a)(1) of the Act to the extent that the foreign broker or dealer: (1) Effects transactions in securities with or for persons that have not been solicited by the foreign broker or dealer or (2) Furnishes research reports to major U. S. institutional investors, and effects transactions in the securities discussed in the research reports with or for those major U. S. institutional investors, provided that: (i) The research reports do not recommend the use of the foreign broker or dealer to effect trades in any security (ii) The foreign broker or dealer does not initiate contact with those major U. S. institutional investors to follow up on the research reports, and does not otherwise induce or attempt to induce the purchase or sale of any security by those major U. S. institutional investors (iii) If the foreign broker or dealer has a relationship with a registered broker or dealer that satisfies the requirements of paragraph (a)(3) of this section. any transactions with the foreign broker or dealer in securities discussed in the research reports are effected only through that registered broker or dealer. pursuant to the provisions of paragraph (a)(3) of this section and (iv) The foreign broker or dealer does not provide research to U. S. persons pursuant to any express or implied understanding that those U. S. persons will direct commission income to the foreign broker or dealer or (3) Induces or attempts to induce the purchase or sale of any security by a U. S. institutional investor or a major U. S. institutional investor, provided that: (i) The foreign broker or dealer: (A) Effects any resulting transactions with or for the U. S. institutional investor or the major U. S. institutional investor through a registered broker or dealer in the manner described by paragraph (a)(3)(iii) of this section and (B) Provides the Commission (upon request or pursuant to agreements reached between any foreign securities authority, including any foreign government. as specified in section 3(a)(50) of the Act, and the Commission or the U. S. Government) with any information or documents within the possession, custody, or control of the foreign broker or dealer, any testimony of foreign associated persons, and any assistance in taking the evidence of other persons, wherever located, that the Commission requests and that relates to transactions under paragraph (a)(3) of this section. except that if, after the foreign broker or dealer has exercised its best efforts to provide the information, documents, testimony, or assistance, including requesting the appropriate governmental body and, if legally necessary, its customers (with respect to customer information) to permit the foreign broker or dealer to provide the information, documents, testimony, or assistance to the Commission, the foreign broker or dealer is prohibited from providing this information, documents, testimony, or assistance by applicable foreign law or regulations, then this paragraph (a)(3)(i)(B) shall not apply and the foreign broker or dealer will be subject to paragraph (c) of this section (ii) The foreign associated person of the foreign broker or dealer effecting transactions with the U. S. institutional investor or the major U. S. institutional investor: (A) Conducts all securities activities from outside the U. S. except that the foreign associated persons may conduct visits to U. S. institutional investors and major U. S. institutional investors within the United States. provided that: (1) The foreign associated person is accompanied on these visits by an associated person of a registered broker or dealer that accepts responsibility for the foreign associated persons communications with the U. S. institutional investor or the major U. S institutional investor and (2) Transactions in any securities discussed during the visit by the foreign associated person are effected only through the registered broker or dealer. pursuant to paragraph (a)(3) of this section and (1) Not be subject to a statutory disqualification specified in section 3(a)(39) of the Act, or any substantially equivalent foreign (i) Expulsion or suspension from membership, (ii) Bar or suspension from association, (iii) Denial of trading privileges, (iv) Order denying, suspending, or revoking registration or barring or suspending association, or (v) Finding with respect to causing any such effective foreign suspension, expulsion, or order (2) Not to have been convicted of any foreign offense, enjoined from any foreign act, conduct, or practice, or found to have committed any foreign act substantially equivalent to any of those listed in sections 15(b)(4) (B), (C), (D), or (E) of the Act and (3) Not to have been found to have made or caused to be made any false foreign statement or omission substantially equivalent to any of those listed in section 3(a)(39)(E) of the Act and (iii) The registered broker or dealer through which the transaction with the U. S. institutional investor or the major U. S. institutional investor is effected: (A) Is responsible for: (1) Effecting the transactions conducted under paragraph (a)(3) of this section. other than negotiating their terms (2) Issuing all required confirmations and statements to the U. S. institutional investor or the major U. S. institutional investor (3) As between the foreign broker or dealer and the registered broker or dealer. extending or arranging for the extension of any credit to the U. S. institutional investor or the major U. S. institutional investor in connection with the transactions (4) Maintaining required books and records relating to the transactions, including those required by Rules 17a 3 and 17a 4 under the Act (17 CFR 2410.17a 3 and l7a 4) (5) Complying with Rule 15c3 1 under the Act (17 CFR 240.15c3 1 ) with respect to the transactions and (6) Receiving, delivering, and safeguarding funds and securities in connection with the transactions on behalf of the U. S. institutional investor or the major U. S. institutional investor in compliance with Rule 15c3 3 under the Act (17 CFR 240.15c3 3 ) (B) Participates through an associated person in all oral communications between the foreign associated person and the U. S. institutional investor, other than a major U. S. institutional investor (C) Has obtained from the foreign broker or dealer, with respect to each foreign associated person, the types of information specified in Rule l7a 3(a)(12) under the Act (17 CFR 240.17a 3(a)(12) ), provided that the information required by paragraph (a)(12)(d) of that Rule shall include sanctions imposed by foreign securities authorities, exchanges, or associations, including without limitation those described in paragraph (a)(3)(ii)(B) of this section (D) Has obtained from the foreign broker or dealer and each foreign associated person written consent to service of process for any civil action brought by or proceeding before the Commission or a self regulatory organization (as defined in section 3(a)(26) of the Act), providing that process may be served on them by service on the registered broker or dealer in the manner set forth on the registered brokers or dealers current Form BD and (E) Maintains a written record of the information and consents required by paragraphs (a)(3)(iii) (C) and (D) of this section. and all records in connection with trading activities of the U. S. institutional investor or the major U. S. institutional investor involving the foreign broker or dealer conducted under paragraph (a)(3) of this section. in an office of the registered broker or dealer located in the United States (with respect to nonresident registered brokers or dealers, pursuant to Rule 17a 7(a) under the Act (17 CFR 240.17a 7(a) )), and makes these records available to the Commission upon request or (4) Effects transactions in securities with or for, or induces or attempts to induce the purchase or sale of any security by: (i) A registered broker or dealer. whether the registered broker or dealer is acting as principal for its own account or as agent for others, or a bank acting pursuant to an exception or exemption from the definition of x201Cbrokerx201D or x201Cdealerx201D in sections 3(a)(4)(B), 3(a)(4)(E), or 3(a)(5)(C) of the Act (15 U. S.C. 78c(a)(4)(B). 15 U. S.C. 78c(a)(4)(E), or 15 U. S.C. 78c(a)(5)(C) ) or the rules thereunder (ii) The African Development Bank, the Asian Development Bank, the Inter American Development Bank, the International Bank for Reconstruction and Development, the International Monetary Fund, the United Nations, and their agencies, affiliates, and pension funds (iii) A foreign person temporarily present in the United States. with whom the foreign broker or dealer had a bona fide, pre existing relationship before the foreign person entered the United States (iv) Any agency or branch of a U. S. person permanently located outside the United States. provided that the transactions occur outside the United States or (v) U. S. citizens resident outside the United States. provided that the transactions occur outside the United States. and that the foreign broker or dealer does not direct its selling efforts toward identifiable groups of U. S. citizens resident abroad. (b) When used in this rule, (1) The term family of investment companies shall mean: (i) Except for insurance company separate accounts, any two or more separately registered investment companies under the Investment Company Act of 1940 that share the same investment adviser or principal underwriter and hold themselves out to investors as related companies for purposes of investment and investor services and (ii) With respect to insurance company separate accounts, any two or more separately registered separate accounts under the Investment Company Act of 1940 that share the same investment adviser or principal underwriter and function under operational or accounting or control systems that are substantially similar. (2) The term foreign associated person shall mean any natural person domiciled outside the United States who is an associated person, as defined in section 3(a)(18) of the Act, of the foreign broker or dealer, and who participates in the solicitation of a U. S. institutional investor or a major U. S. institutional investor under paragraph (a)(3) of this section. (3) The term foreign broker or dealer shall mean any non U. S. resident person (including any U. S. person engaged in business as a broker or dealer entirely outside the United States. except as otherwise permitted by this rule) that is not an office or branch of, or a natural person associated with, a registered broker or dealer. whose securities activities, if conducted in the United States. would be described by the definition of x201Cbrokerx201D or x201Cdealerx201D in sections 3(a)(4) or 3(a)(5) of the Act. (4) The term major U. S. institutional investor shall mean a person that is: (i) A U. S. institutional investor that has, or has under management, total assets in excess of 100 million provided, however. that for purposes of determining the total assets of an investment company under this rule, the investment company may include the assets of any family of investment companies of which it is a part or (ii) An investment adviser registered with the Commission under section 203 of the Investment Advisers Act of 1940 that has total assets under management in excess of 100 million. (5) The term registered broker or dealer shall mean a person that is registered with the Commission under sections 15(b), 15B(a)(2), or 15C(a)(2) of the Act. (6) The term United States shall mean the United States of America, including the States and any territories and other areas subject to its jurisdiction. (7) The term U. S. institutional investor shall mean a person that is: (i) An investment company registered with the Commission under section 8 of the Investment Company Act of 1940 or (ii) A bank, savings and loan association, insurance company, business development company. small business investment company, or employee benefit plan defined in Rule 501(a)(1) of Regulation D under the Securities Act of 1933 (17 CFR 230.501(a)(1) ) a private business development company defined in Rule 501(a)(2) (17 CFR 230.501(a)(2) ) an organization described in section 501(c)(3) of the Internal Revenue Code, as defined in Rule 501(a)(3) (17 CFR 230.501(a)(3) ) or a trust defined in Rule 501(a)(7) (17 CFR 230.501(a)(7) ). (c) The Commission, by order after notice and opportunity for hearing, may withdraw the exemption provided in paragraph (a)(3) of this section with respect to the subsequent activities of a foreign broker or dealer or class of foreign brokers or dealers conducted from a foreign country, if the Commission finds that the laws or regulations of that foreign country have prohibited the foreign broker or dealer, or one of a class of foreign brokers or dealers, from providing, in response to a request from the Commission, information or documents within its possession, custody, or control. testimony of foreign associated persons, or assistance in taking the evidence of other persons, wherever located, related to activities exempted by paragraph (a)(3) of this section. This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part. It is not guaranteed to be accurate or up to date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site. United States Code U. S. Code: Title 7 AGRICULTURE U. S. Code: Title 12 BANKS AND BANKING 17 CFR Part 240 This document makes technical corrections to a rule that was published in the Federal Register on May 10, 2016 (81 FR 28689). The Commission adopted revisions to Rule 12g 1 under the Securities Exchange Act of 1934 (Exchange Act) in light of the statutory changes made by Title V and Title VI of the Jumpstart Our Business Startups Act and Title LXXXV of the Fixing Americaaposs Surface Transportation Act. This document is being published to correct language in that rule to more precisely reflect the holder of record threshold established by Exchange Act Section 12(g)(1). 2016 11 21 vol. 81 224 Monday, November 21, 201681 FR 83494 Exemptions To Facilitate Intrastate and Regional Securities Offerings Effective date: Revised 17 CFR 230.147 (Rule 147) and new 17 CFR 230.147A (Rule 147A) will be effective on April 20, 2017. The amendments to 17 CFR 230.504 (Rule 504) and 17 CFR 200.30 1 (Rule 30 1) will be effective on January 20, 2017. The removal of 17 CFR 230.505 (Rule 505) will be effective on May 22, 2017. All other amendments in this rule will be effective on May 22, 2017. Comment date: Comments regarding the collection of information requirements within the meaning of the Paperwork Reduction Act of 1995 should be received on or before January 20, 2017. 17 CFR Parts 200, 230, 239, 240, 249, 270 and 275 We are adopting amendments to modernize Rule 147 under the Securities Act of 1933, which provides a safe harbor for compliance with the Section 3(a)(11) exemption from registration for intrastate securities offerings. We are also establishing a new intrastate offering exemption under the Securities Act, designated Rule 147A, which will be similar to amended Rule 147, but will have no restriction on offers and will allow issuers to be incorporated or organized outside of the state in which the intrastate offering is conducted provided certain conditions are met. The amendments to Rule 147 and new Rule 147A are designed to facilitate capital formation, including through offerings relying upon intrastate crowdfunding provisions under state securities laws, while maintaining appropriate investor protections and providing state securities regulators with the flexibility to add additional investor protections they deem appropriate for offerings within their state. We also are adopting amendments to Rule 504 of Regulation D under the Securities Act to facilitate issuersapos capital raising efforts and provide additional investor protections. The amendments to Rule 504 will increase the aggregate amount of securities that may be offered and sold in any twelve month period from 1 million to 5 million and disqualify certain bad actors from participation in Rule 504 offerings. In light of these amendments to Rule 504, we are also repealing Rule 505. 2016 11 18 vol. 81 223 Friday, November 18, 201681 FR 81870 Investment Company Reporting Modernization Effective Dates: This rule is effective January 17, 2017, except for the following: The amendments to 17 CFR 200.800, 232.105, 232.301, 240.10A 1, 240.12b 25, 240.13a 10, 240.13a 11, 240.13a 13, 240.13a 16, 240.15d 10, 240.15d 11, 240.15d 13, 240.15d 16, 249.322, 249.330, 270.8b 16, 270.10f 3, 270.30a 1, 270.30a 4, 270.30b1 1, 270.30b1 2, 270.30b1 3, 274.101, and 274.218, and in Instruction 55 amending 270.30d 1 are effective June 1, 2018 and The amendments to 17 CFR 232.401, 249.332, 270.8b 33, 270.30a 2, 270.30a 3, 270.30b1 5, and 274.130, and in Instruction 54 amending 270.30d 1, Instruction 57 amending Form N 1A (referenced in 239.15A and 274.11A), Instruction 59 amending Form N 2 (referenced in 239.14 and 274.11a 1), and Instruction 61 amending Form N 3 (referenced in 239.17a and 274.11b) are effective August 1, 2019. Compliance Dates: The applicable compliance dates are discussed in section II. H. of this final rule. 17 CFR Parts 200, 210, 232, 239, 240, 249, 270, 274 The Securities and Exchange Commission is adopting new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The Commission is adopting new Form N PORT, which will require certain registered investment companies to report information about their monthly portfolio holdings to the Commission in a structured data format. In addition, the Commission is adopting amendments to Regulation S X, which will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The Commission is adopting new Form N CEN, which will require registered investment companies, other than face amount certificate companies, to annually report certain census type information to the Commission in a structured data format. The Commission is adopting amendments to Forms N 1A, N 3, and N CSR to require certain disclosures regarding securities lending activities. Finally, the Commission is rescinding current Forms N Q and N SAR and amending certain other rules and forms. Collectively, these amendments will, among other things, improve the information that the Commission receives from investment companies and assist the Commission, in its role as primary regulator of investment companies, to better fulfill its mission of protecting investors, maintaining fair, orderly and efficient markets, and facilitating capital formation. Investors and other potential users can also utilize this information to help investors make more informed investment decisions. 2016 11 10 vol. 81 218 Thursday, November 10, 201681 FR 79122 Universal Proxy 17 CFR Part 240 We are proposing amendments to the federal proxy rules to require the use of universal proxies in all non exempt solicitations in connection with contested elections of directors other than those involving registered investment companies and business development companies. Our proposal would require the use of universal proxies that include the names of both registrant and dissident nominees and thus allow shareholders to vote by proxy in a manner that more closely resembles how they can vote in person at a shareholder meeting. We further propose amendments to the form of proxy and proxy statement disclosure requirements to specify clearly the applicable voting options and voting standards in all director elections. 2016 10 13 vol. 81 198 Thursday, October 13, 201681 FR 70744 Definition of Covered Clearing Agency 17 CFR Part 240 The Securities and Exchange Commission (SEC or Commission) proposes to amend the definition of covered clearing agency under Rule 17Ad 22 to mean a registered clearing agency that provides the services of a central counterparty (CCP), central securities depository (CSD), or a securities settlement system (SSS). The Commission also proposes a definition of securities settlement system and proposes to amend the definitions of central securities depository services to facilitate the proposed amendment to covered clearing agency. In addition, the Commission proposes to amend the definition of sensitivity analysis under Rule 17Ad 22 to expand the scope of covered clearing agencies subject to requirements thereunder. These amendments are proposed pursuant to Section 17A of the Securities Exchange Act of 1934 (Exchange Act) and the Payment, Clearing, and Settlement Supervision Act of 2010 (Clearing Supervision Act), enacted in Title VIII of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank Act). 81 FR 70786 Standards for Covered Clearing Agencies17 CFR Part 240 The Securities and Exchange Commission (SEC or Commission) is adopting amendments to Rule 17Ad 22 and adding new Rule 17Ab2 2 pursuant to Section 17A of the Securities Exchange Act of 1934 (Exchange Act) and the Payment, Clearing, and Settlement Supervision Act of 2010 (Clearing Supervision Act), enacted in Title VIII of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank Act). Among other things, the rules establish enhanced standards for the operation and governance of those clearing agencies registered with the Commission (registered clearing agencies) that meet the definition of covered clearing agency. 2016 10 05 vol. 81 193 Wednesday, October 5, 201681 FR 69240 Amendment to Securities Transaction Settlement Cycle 17 CFR Part 240 The Securities and Exchange Commission (Commission) proposes to amend Rule 15c6 1(a) under the Securities Exchange Act of 1934 (Exchange Act) to shorten the standard settlement cycle for most broker dealer transactions from three business days after the trade date (T3) to two business days after the trade date (T2). The proposed amendment is designed to reduce a number of risks, including credit risk, market risk, and liquidity risk and, as a result, reduce systemic risk for U. S. market participants. 2016 09 29 vol. 81 189 Thursday, September 29, 201681 FR 66898 Extension of Comment Period for Disclosure Update and Simplification 17 CFR Parts 210, 229, 230, 239, 240, 249, and 274 The Securities and Exchange Commission is extending the comment period for a proposal to amend certain of its disclosure requirements that may have become redundant, duplicative, overlapping, outdated, or superseded, in light of other Commission disclosure requirements, U. S. Generally Accepted Accounting Principles (U. S. GAAP), International Financial Reporting Standards (IFRS), or changes in the information environment Release No. 33 10110 34 78310 IC 32175 81 FR 51607 (July 13, 2016). The release also solicits comment on certain Commission disclosure requirements that overlap with, but require information incremental to, U. S. GAAP to determine whether to retain, modify, eliminate, or refer them to the Financial Accounting Standards Board for potential incorporation into U. S. GAAP. The original comment period is scheduled to end on October 3, 2016. The Commission is extending the time period in which to provide the Commission with comments until November 2, 2016. This action will allow interested persons additional time to analyze the issues and prepare their comments. 2016 09 02 vol. 81 171 Friday, September 2, 201681 FR 60585 Access to Data Obtained by Security Based Swap Data Repositories 17 CFR Part 240 Pursuant to section 763(i) of Title VII (Title VII) of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank Act), the Securities and Exchange Commission (Commission) is adopting amendments to rule 13n 4 under the Securities Exchange Act of 1934 (Exchange Act) related to regulatory access to security based swap data held by security based swap data repositories. The rule amendments would implement the conditional Exchange Act requirement that security based swap data repositories make data available to certain regulators and other authorities. 2016 08 04 vol. 81 150 Thursday, August 4, 201681 FR 51608 Disclosure Update and Simplification 17 CFR Parts 210, 229, 230, 239, 240, 249, and 274 We are proposing amendments to certain of our disclosure requirements that may have become redundant, duplicative, overlapping, outdated, or superseded, in light of other Commission disclosure requirements, U. S. Generally Accepted Accounting Principles (U. S. GAAP), International Financial Reporting Standards (IFRS), or changes in the information environment. We are also soliciting comment on certain Commission disclosure requirements that overlap with, but require information incremental to, U. S. GAAP to determine whether to retain, modify, eliminate, or refer them to the Financial Accounting Standards Board (FASB) for potential incorporation into U. S. GAAP. The proposed amendments are intended to facilitate the disclosure of information to investors, while simplifying compliance efforts, without significantly altering the total mix of information provided to investors. These proposals are part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers. We are also issuing these proposals as part of our efforts to implement title LXXII, section 72002(2) of the Fixing Americaaposs Surface Transportation Act. 2016 07 27 vol. 81 144 Wednesday, July 27, 201681 FR 49163 Order Recognizing the Resource Extraction Payment Disclosure Requirements of the European Union, Canada and the U. S. Extractive Industries Transparency Initiative as Substantially Similar to the Requirements of Rule 13q 1 Under the Securities Exchange Act of 1934 Effective date: The final rule and form amendment are effective September 26, 2016. Compliance date: A resource extraction issuer must comply with the final rule and form for fiscal years ending on or after September 30, 2018. 17 CFR Parts 240 and 249b We are adopting Rule 13q 1 and an amendment to Form SD to implement Section 1504 of the Dodd Frank Wall Street Reform and Consumer Protection Act relating to the disclosure of payments by resource extraction issuers. Rule 13q 1 was initially adopted by the Commission on August 22, 2012, but it was subsequently vacated by the U. S. District Court for the District of Columbia. Section 1504 of the Dodd Frank Act added Section 13(q) to the Securities Exchange Act of 1934, which directs the Commission to issue rules requiring resource extraction issuers to include in an annual report information relating to any payment made by the issuer, a subsidiary of the issuer, or an entity under the control of the issuer, to a foreign government or the Federal Government for the purpose of the commercial development of oil, natural gas, or minerals. Section 13(q) requires a resource extraction issuer to provide information about the type and total amount of such payments made for each project related to the commercial development of oil, natural gas, or minerals, and the type and total amount of payments made to each government. In addition, Section 13(q) requires a resource extraction issuer to provide information about those payments in an interactive data format. 81 FR 49432 Disclosure of Order Handling Information17 CFR Parts 240 and 242 The Securities and Exchange Commission (Commission or SEC) is proposing to amend Rules 600 and 606 of Regulation National Market System (Regulation NMS) under the Securities Exchange Act of 1934 (Exchange Act) to require additional disclosures by broker dealers to customers about the routing of their orders. Specifically, with respect to institutional orders, the Commission is proposing to amend Rule 606 of Regulation NMS to require a broker dealer, upon request of its customer, to provide specific disclosures related to the routing and execution of the customeraposs institutional orders for the prior six months. The Commission also is proposing to amend Rule 606 of Regulation NMS to require a broker dealer to make publicly available aggregated information with respect to its handling of customersapos institutional orders for each calendar quarter. With respect to retail orders, the Commission is proposing to make targeted enhancements to current order routing disclosures under Rule 606 by requiring limit order information to be broken down into marketable and non marketable categories, requiring the disclosure of the net aggregate amount of any payment for order flow received, payment from any profit sharing relationship received, transaction fees paid, and transaction rebates received by a broker dealer from certain venues, requiring broker dealers to describe any terms of payment for order flow arrangements and profit sharing relationships with certain venues that may influence their order routing decisions, and eliminating the requirement to divide retail order routing information by listing market. In connection with these new requirements, the Commission is proposing to amend Rule 600 of Regulation NMS to include a number of newly defined terms which are used in the proposed amendments to Rule 606. The Commission is also proposing to amend Rules 605 and 606 of Regulation NMS to require that the public order execution and order routing reports be kept publicly available for a period of three years and to make conforming changes to Rule 607. Finally, the Commission is proposing to amend Rule 3a51 1(a) under the Exchange Act Rule 13h 1(a)(5) of Regulation 13D G Rule 105(b)(1) of Regulation M Rules 201(a) and 204(g) of Regulation SHO Rules 600(b), 602(a)(5), 607(a)(1), and 611(c) of Regulation NMS and Rule 1000 of Regulation SCI, to update cross references as a result of this proposed rule. 2016 07 01 vol. 81 127 Friday, July 1, 201681 FR 43130 Amendments to Smaller Reporting Company Definition 17 CFR Parts 229, 230, and 240 We are proposing amendments to the definition of smaller reporting company as used in our rules and regulations. The proposed amendments, which would expand the number of registrants that qualify as smaller reporting companies, are intended to promote capital formation and reduce compliance costs for smaller registrants, while maintaining investor protections. Registrants with less than 250 million in public float would qualify, as would registrants with zero public float if their revenues were below 100 million in the previous year. 2016 06 17 vol. 81 117 Friday, June 17, 201681 FR 39808 Trade Acknowledgment and Verification of Security Based Swap Transactions 17 CFR Part 240 In accordance with Section 764(a) of Title VII of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank Act), the Securities and Exchange Commission (Commission) is adopting Rules 15Fi 1 and 15Fi 2 under the Securities Exchange Act of 1934 (Exchange Act) requiring security based swap dealers and major security based swap participants to provide trade acknowledgments and to verify those trade acknowledgments in security based swap transactions. The Commission also is amending Rule 3a71 6 under the Exchange Act to address the potential availability of substituted compliance in connection with those trade acknowledgment and verification requirements. 2016 06 10 vol. 81 112 Friday, June 10, 201681 FR 37670 Incentive Based Compensation Arrangements Rule 15b12 1, by its terms, will expire and no longer be effective on July 31, 2016. Interested persons should be aware that as of that date, any broker or dealer, including a broker or dealer that is also dually registered as a futures commission merchant (BDFCM), shall be prohibited under the Commodity Exchange Act (CEA) from offering or entering into a transaction described in the CEA with a person who is not an eligible contract participant (retail forex transaction). 2016 05 24 vol. 81 100 Tuesday, May 24, 201681 FR 32643 Business Conduct Standards for Security Based Swap Dealers and Major Security Based Swap Participants Correction 17 CFR Part 240 In accordance with Section 764 of Title VII (Title VII) of the Dodd Frank Wall Street Reform and Consumer Protection Act (the Dodd Frank Act), the Securities and Exchange Commission (SEC or Commission) is adopting new rules under the Securities Exchange Act of 1934 (Exchange Act) that are intended to implement provisions of Title VII relating to business conduct standards and the designation of a chief compliance officer for security based swap dealers and major security based swap participants. The final rules also address the cross border application of the rules and the availability of substituted compliance. 2016 05 10 vol. 81 90 Tuesday, May 10, 201681 FR 28689 Changes to Exchange Act Registration Requirements To Implement Title V and Title VI of the JOBS Act 17 CFR Parts 230 and 240 We are amending our rules in light of the statutory changes made by Title V and Title VI of the Jumpstart Our Business Startups Act (the JOBS Act) and Title LXXXV of the Fixing Americaaposs Surface Transportation Act (the FAST Act). The amendments revise our rules to reflect the new, higher thresholds for registration, termination of registration and suspension of reporting that were set forth in the JOBS Act and the FAST Act. In addition, the amendments revise the definition of held of record in Rule 12g5 1 under the Securities Exchange Act of 1934 (the Exchange Act), in accordance with the JOBS Act, to exclude certain securities held by persons who received them pursuant to employee compensation plans and establish a non exclusive safe harbor for determining whether securities are held of record for purposes of registration under Exchange Act Section 12(g). 2016 04 22 vol. 81 78 Friday, April 22, 201681 FR 23916 Business and Financial Disclosure Required by Regulation S K 17 CFR Parts 210, 229, 230, 232, 239, 240 and 249 The Commission is publishing this concept release to seek public comment on modernizing certain business and financial disclosure requirements in Regulation S K. These disclosure requirements serve as the foundation for the business and financial disclosure in registrantsapos periodic reports. This concept release is part of an initiative by the Division of Corporation Finance to review the disclosure requirements applicable to registrants to consider ways to improve the requirements for the benefit of investors and registrants. 2016 04 01 vol. 81 63 Friday, April 1, 201681 FR 18747 General Rules and Regulations, Securities Exchange Act of 1934 Extension of comment period. The comment period for the proposed rule published on December 23, 2015 (80 FR 80057), is extended. Initial comments are due on February 16, 2016. Reply comments, which may respond only to issues raised in the initial comment period, are due on March 8, 2016. In developing the final rules, the Commission may rely on both new comments and comments that have been received to date, including those that were provided in connection with the prior rules that the Commission issued under Section 13(q). 17 CFR Parts 240 and 249 The Securities and Exchange Commission is extending the comment period for a release proposing new Rule 13q 1 and an amendment to Form SD to implement Section 1504 of the Dodd Frank Wall Street Reform and Consumer Protection Act relating to disclosure of payments by resource extraction issuers Release No. 34 76620 (Dec. 11, 2015) 80 FR 80057 (Dec. 23, 2015). The comment period for the proposal is divided between an initial comment period and a period for reply comments. The original initial comment period is scheduled to end on January 25, 2016 and the original period for reply comments is scheduled to end on February 16, 2016. The Commission is extending the time period in which to provide the Commission with initial comments until February 16, 2016 and to provide reply comments until March 8, 2016. This action will allow interested persons additional time to analyze the issues and prepare their comments. 2016 01 21 vol. 81 13 Thursday, January 21, 201681 FR 3354 Access to Data Obtained by Security Based Swap Data Repositories and Exemption From Indemnification Requirement The Securities and Exchange Commission (Commission) is publishing this Advance Notice of Proposed Rulemaking, Concept Release, and Request for Comment on Transfer Agent Regulations (release) to seek public comment regarding the Commissionaposs transfer agent rules. The first transfer agent rules were adopted in 1977 and remain essentially unchanged. At the same time, transfer agents now operate in a market structure that bears little resemblance to the structure in 1977. The release, noting the importance of transfer agents within the national market structure, includes a history of transfer agent services and applicable regulations as well as an overview of current transfer agent services and activities, and requests comment on all topics. The release includes an Advance Notice of Proposed Rulemaking in specific areas, such as transfer agent registration and reporting requirements, safeguarding of funds and securities, and revision of obsolete or outdated rules, along with requests for comment, as well as a Concept Release and Request for Comment addressing additional areas of specific Commission interest, including processing of book entry securities, broker dealer recordkeeping for beneficial owners, transfer agents to mutual funds, and administration of issuer plans. The Commission intends to consider the publicaposs comments in connection with any future rulemaking, and comments to the Advance Notice of Proposed Rulemaking will be used to further consider the sufficiency and scope of the rulemaking proposals described therein. 2015 12 28 vol. 80 248 Monday, December 28, 201580 FR 80998 Regulation of NMS Stock Alternative Trading Systems 17 CFR Parts 240, 242, 249 The Securities and Exchange Commission is proposing to amend the regulatory requirements in Regulation ATS under the Securities Exchange Act of 1934 (Exchange Act) applicable to alternative trading systems (ATSs) that transact in National Market System (NMS) stocks (hereinafter referred to as (NMS Stock ATSs), including so called dark pools. First, the Commission is proposing to amend Regulation ATS to adopt Form ATS N to provide information about the broker dealer that operates the NMS Stock ATS (broker dealer operator) and the activities of the broker dealer operator and its affiliates in connection with the NMS Stock ATS, and to provide detailed information about the manner of operations of the ATS. Second, the Commission is proposing to make filings on Form ATS N public by posting certain Form ATS N filings on the Commissionaposs internet Web site and requiring each NMS Stock ATS that has a Web site to post on the NMS Stock ATSaposs Web site a direct URL hyperlink to the Commissionaposs Web site that contains the required documents. Third, the Commission is proposing to amend Regulation ATS to provide a process for the Commission to determine whether an entity qualifies for the exemption from the definition of exchange under Exchange Act Rule 3a1 1(a)(2) with regard to NMS stocks and declare an NMS Stock ATSaposs Form ATS N either effective or, after notice and opportunity for hearing, ineffective. Fourth, under the proposal, the Commission could suspend, limit, or revoke the exemption from the definition of exchange after providing notice and opportunity for hearing. Fifth, the Commission is proposing to require that an ATSaposs safeguards and procedures to protect subscribersapos confidential trading information be written. The Commission is also proposing to make conforming changes to Regulation ATS and Exchange Act Rule 3a1 1(a). Additionally, the Commission is requesting comment about, among other things, changing the requirements of the exemption from the definition of exchange pursuant to Exchange Act Rule 3a1 1(a) for ATSs that facilitate transactions in securities other than NMS stocks. Lastly, the Commission is also requesting comment regarding its consideration to amend Exchange Act Rules 600 and 606 to improve transparency around the handling and routing of institutional customer orders by broker dealers. 2015 12 23 vol. 80 246 Wednesday, December 23, 201580 FR 79757 Establishing the Form and Manner with which Security Based Swap Data Repositories Must Make Security Based Swap Data Available to the Commission 17 CFR Part 240 The Securities and Exchange Commission (SEC or Commission) is publishing for comment a proposed amendment to specify the form and manner with which security based swap data repositories (SDRs) will be required to make security based swap (SBS) data available to the Commission under Exchange Act Rule 13n 4(b)(5). The Commission is proposing to require SDRs to make these data available according to schemas that will be published on the Commissionaposs Web site and that will reference the international industry standards Financial products Markup Language (FpML) and Financial Information eXchange Markup Language (FIXML). 80 FR 80058 Disclosure of Payments by Resource Extraction IssuersWe are providing two comment periods for this proposal. Initial comments are due on January 25, 2016. Reply comments, which may respond only to issues raised in the initial comment period, are due on February 16, 2016. In developing the final rules, the Commission may rely on both new comments and comments that have been received to date, including those that were provided in connection with the prior rules that the Commission issued under Section 13(q). 17 CFR Parts 240 and 249b We are proposing Rule 13q 1 and an amendment to Form SD to implement Section 1504 of the Dodd Frank Wall Street Reform and Consumer Protection Act relating to disclosure of payments by resource extraction issuers. Rule 13q 1 was initially adopted by the Commission on August 22, 2012, but it was subsequently vacated by the U. S. District Court for the District of Columbia. Section 1504 of the Dodd Frank Act added Section 13(q) to the Securities Exchange Act of 1934, which directs the Commission to issue rules requiring resource extraction issuers to include in an annual report information relating to any payment made by the issuer, a subsidiary of the issuer, or an entity under the control of the issuer, to a foreign government or the Federal Government for the purpose of the commercial development of oil, natural gas, or minerals. Section 13(q) requires a resource extraction issuer to provide information about the type and total amount of such payments made for each project related to the commercial development of oil, natural gas, or minerals, and the type and total amount of payments made to each government. In addition, Section 13(q) requires a resource extraction issuer to provide information about those payments in an interactive data format. 2015 12 22 vol. 80 245 Tuesday, December 22, 201580 FR 79473 Crowdfunding Correction 17 CFR Parts 200, 227, 232, 239, 240, 249, 269, and 274 The Securities and Exchange Commission published in the Federal Register of November 16, 2015, the final rule, Regulation Crowdfunding, under the Securities Act of 1933 and the Securities Exchange Act of 1934 to implement the requirements of Title III of the Jumpstart Our Business Startups Act of 2012. The effective date for subpart U, which adds Form Funding Portal, was inadvertently omitted in the DATES section of the Federal Register. This correction adds the effective date for subpart U, Form Funding Portal. The section you are viewing is cited by the following CFR sections. Title 17 published on 2015 12 04 . The following are only the Rules published in the Federal Register after the published date of Title 17. For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab. 2016 12 28 vol. 81 249 Wednesday, December 28, 2016 81 FR 95458 Changes to Exchange Act Registration Requirements To Implement Title V and Title VI of the JOBS Act Correction 17 CFR Part 240 This document makes technical corrections to a rule that was published in the Federal Register on May 10, 2016 (81 FR 28689). The Commission adopted revisions to Rule 12g 1 under the Securities Exchange Act of 1934 (Exchange Act) in light of the statutory changes made by Title V and Title VI of the Jumpstart Our Business Startups Act and Title LXXXV of the Fixing Americaaposs Surface Transportation Act. This document is being published to correct language in that rule to more precisely reflect the holder of record threshold established by Exchange Act Section 12(g)(1). 2016 11 21 vol. 81 224 Monday, November 21, 201681 FR 83494 Exemptions To Facilitate Intrastate and Regional Securities Offerings Effective date: Revised 17 CFR 230.147 (Rule 147) and new 17 CFR 230.147A (Rule 147A) will be effective on April 20, 2017. The amendments to 17 CFR 230.504 (Rule 504) and 17 CFR 200.30 1 (Rule 30 1) will be effective on January 20, 2017. The removal of 17 CFR 230.505 (Rule 505) will be effective on May 22, 2017. All other amendments in this rule will be effective on May 22, 2017. Comment date: Comments regarding the collection of information requirements within the meaning of the Paperwork Reduction Act of 1995 should be received on or before January 20, 2017. 17 CFR Parts 200, 230, 239, 240, 249, 270 and 275 We are adopting amendments to modernize Rule 147 under the Securities Act of 1933, which provides a safe harbor for compliance with the Section 3(a)(11) exemption from registration for intrastate securities offerings. We are also establishing a new intrastate offering exemption under the Securities Act, designated Rule 147A, which will be similar to amended Rule 147, but will have no restriction on offers and will allow issuers to be incorporated or organized outside of the state in which the intrastate offering is conducted provided certain conditions are met. The amendments to Rule 147 and new Rule 147A are designed to facilitate capital formation, including through offerings relying upon intrastate crowdfunding provisions under state securities laws, while maintaining appropriate investor protections and providing state securities regulators with the flexibility to add additional investor protections they deem appropriate for offerings within their state. We also are adopting amendments to Rule 504 of Regulation D under the Securities Act to facilitate issuersapos capital raising efforts and provide additional investor protections. The amendments to Rule 504 will increase the aggregate amount of securities that may be offered and sold in any twelve month period from 1 million to 5 million and disqualify certain bad actors from participation in Rule 504 offerings. In light of these amendments to Rule 504, we are also repealing Rule 505. 2016 11 18 vol. 81 223 Friday, November 18, 201681 FR 81870 Investment Company Reporting Modernization Effective Dates: This rule is effective January 17, 2017, except for the following: The amendments to 17 CFR 200.800, 232.105, 232.301, 240.10A 1, 240.12b 25, 240.13a 10, 240.13a 11, 240.13a 13, 240.13a 16, 240.15d 10, 240.15d 11, 240.15d 13, 240.15d 16, 249.322, 249.330, 270.8b 16, 270.10f 3, 270.30a 1, 270.30a 4, 270.30b1 1, 270.30b1 2, 270.30b1 3, 274.101, and 274.218, and in Instruction 55 amending 270.30d 1 are effective June 1, 2018 and The amendments to 17 CFR 232.401, 249.332, 270.8b 33, 270.30a 2, 270.30a 3, 270.30b1 5, and 274.130, and in Instruction 54 amending 270.30d 1, Instruction 57 amending Form N 1A (referenced in 239.15A and 274.11A), Instruction 59 amending Form N 2 (referenced in 239.14 and 274.11a 1), and Instruction 61 amending Form N 3 (referenced in 239.17a and 274.11b) are effective August 1, 2019. Compliance Dates: The applicable compliance dates are discussed in section II. H. of this final rule. 17 CFR Parts 200, 210, 232, 239, 240, 249, 270, 274 The Securities and Exchange Commission is adopting new rules and forms as well as amendments to its rules and forms to modernize the reporting and disclosure of information by registered investment companies. The Commission is adopting new Form N PORT, which will require certain registered investment companies to report information about their monthly portfolio holdings to the Commission in a structured data format. In addition, the Commission is adopting amendments to Regulation S X, which will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The Commission is adopting new Form N CEN, which will require registered investment companies, other than face amount certificate companies, to annually report certain census type information to the Commission in a structured data format. The Commission is adopting amendments to Forms N 1A, N 3, and N CSR to require certain disclosures regarding securities lending activities. Finally, the Commission is rescinding current Forms N Q and N SAR and amending certain other rules and forms. Collectively, these amendments will, among other things, improve the information that the Commission receives from investment companies and assist the Commission, in its role as primary regulator of investment companies, to better fulfill its mission of protecting investors, maintaining fair, orderly and efficient markets, and facilitating capital formation. Investors and other potential users can also utilize this information to help investors make more informed investment decisions. 2016 10 13 vol. 81 198 Thursday, October 13, 201681 FR 70786 Standards for Covered Clearing Agencies 17 CFR Part 240 The Securities and Exchange Commission (SEC or Commission) is adopting amendments to Rule 17Ad 22 and adding new Rule 17Ab2 2 pursuant to Section 17A of the Securities Exchange Act of 1934 (Exchange Act) and the Payment, Clearing, and Settlement Supervision Act of 2010 (Clearing Supervision Act), enacted in Title VIII of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank Act). Among other things, the rules establish enhanced standards for the operation and governance of those clearing agencies registered with the Commission (registered clearing agencies) that meet the definition of covered clearing agency. 2016 09 02 vol. 81 171 Friday, September 2, 201681 FR 60585 Access to Data Obtained by Security Based Swap Data Repositories 17 CFR Part 240 Pursuant to section 763(i) of Title VII (Title VII) of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank Act), the Securities and Exchange Commission (Commission) is adopting amendments to rule 13n 4 under the Securities Exchange Act of 1934 (Exchange Act) related to regulatory access to security based swap data held by security based swap data repositories. The rule amendments would implement the conditional Exchange Act requirement that security based swap data repositories make data available to certain regulators and other authorities. 2016 07 27 vol. 81 144 Wednesday, July 27, 201681 FR 49163 Order Recognizing the Resource Extraction Payment Disclosure Requirements of the European Union, Canada and the U. S. Extractive Industries Transparency Initiative as Substantially Similar to the Requirements of Rule 13q 1 Under the Securities Exchange Act of 1934 Effective date: The final rule and form amendment are effective September 26, 2016. Compliance date: A resource extraction issuer must comply with the final rule and form for fiscal years ending on or after September 30, 2018. 17 CFR Parts 240 and 249b We are adopting Rule 13q 1 and an amendment to Form SD to implement Section 1504 of the Dodd Frank Wall Street Reform and Consumer Protection Act relating to the disclosure of payments by resource extraction issuers. Rule 13q 1 was initially adopted by the Commission on August 22, 2012, but it was subsequently vacated by the U. S. District Court for the District of Columbia. Section 1504 of the Dodd Frank Act added Section 13(q) to the Securities Exchange Act of 1934, which directs the Commission to issue rules requiring resource extraction issuers to include in an annual report information relating to any payment made by the issuer, a subsidiary of the issuer, or an entity under the control of the issuer, to a foreign government or the Federal Government for the purpose of the commercial development of oil, natural gas, or minerals. Section 13(q) requires a resource extraction issuer to provide information about the type and total amount of such payments made for each project related to the commercial development of oil, natural gas, or minerals, and the type and total amount of payments made to each government. In addition, Section 13(q) requires a resource extraction issuer to provide information about those payments in an interactive data format. 2016 06 17 vol. 81 117 Friday, June 17, 201681 FR 39808 Trade Acknowledgment and Verification of Security Based Swap Transactions 17 CFR Part 240 In accordance with Section 764(a) of Title VII of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank Act), the Securities and Exchange Commission (Commission) is adopting Rules 15Fi 1 and 15Fi 2 under the Securities Exchange Act of 1934 (Exchange Act) requiring security based swap dealers and major security based swap participants to provide trade acknowledgments and to verify those trade acknowledgments in security based swap transactions. The Commission also is amending Rule 3a71 6 under the Exchange Act to address the potential availability of substituted compliance in connection with those trade acknowledgment and verification requirements. 2016 05 26 vol. 81 102 Thursday, May 26, 201681 FR 33374 Retail Foreign Exchange Transactions Rule 15b12 1, by its terms, will expire and no longer be effective on July 31, 2016. Interested persons should be aware that as of that date, any broker or dealer, including a broker or dealer that is also dually registered as a futures commission merchant (BDFCM), shall be prohibited under the Commodity Exchange Act (CEA) from offering or entering into a transaction described in the CEA with a person who is not an eligible contract participant (retail forex transaction). 2016 05 24 vol. 81 100 Tuesday, May 24, 201681 FR 32643 Business Conduct Standards for Security Based Swap Dealers and Major Security Based Swap Participants Correction 17 CFR Part 240 In accordance with Section 764 of Title VII (Title VII) of the Dodd Frank Wall Street Reform and Consumer Protection Act (the Dodd Frank Act), the Securities and Exchange Commission (SEC or Commission) is adopting new rules under the Securities Exchange Act of 1934 (Exchange Act) that are intended to implement provisions of Title VII relating to business conduct standards and the designation of a chief compliance officer for security based swap dealers and major security based swap participants. The final rules also address the cross border application of the rules and the availability of substituted compliance. 2016 05 10 vol. 81 90 Tuesday, May 10, 201681 FR 28689 Changes to Exchange Act Registration Requirements To Implement Title V and Title VI of the JOBS Act 17 CFR Parts 230 and 240 We are amending our rules in light of the statutory changes made by Title V and Title VI of the Jumpstart Our Business Startups Act (the JOBS Act) and Title LXXXV of the Fixing Americaaposs Surface Transportation Act (the FAST Act). The amendments revise our rules to reflect the new, higher thresholds for registration, termination of registration and suspension of reporting that were set forth in the JOBS Act and the FAST Act. In addition, the amendments revise the definition of held of record in Rule 12g5 1 under the Securities Exchange Act of 1934 (the Exchange Act), in accordance with the JOBS Act, to exclude certain securities held by persons who received them pursuant to employee compensation plans and establish a non exclusive safe harbor for determining whether securities are held of record for purposes of registration under Exchange Act Section 12(g). 2016 04 01 vol. 81 63 Friday, April 1, 201681 FR 18747 General Rules and Regulations, Securities Exchange Act of 1934
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