[Federal Register Volume 80, Number 181 (Friday, September 18, 2015)]
[Proposed Rules]
[Pages 56405-56407]
[FR Doc No: 2015-23409]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2015-3631; Directorate Identifier 2015-NM-060-AD]
RIN 2120-AA64

Airworthiness Directives; Airbus Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for
certain Airbus Model A330-200 and -300 series airplanes; Model A330-200
Freighter series airplanes; and Model A340-200, -300, -500, and -600
series airplanes. This proposed AD was prompted by reports of chafed
wiring at the upper left corner of the cockpit door. The affected wire
bundle was not grounded on the cockpit door frame. This proposed AD
would require modifying the cockpit door frame structure, installing
bonding-leads to the upper cockpit door frame, and modifying the upper
cockpit door plate cover. We are proposing this AD to prevent
electrical shock injury to persons contacting the cockpit door.

DATES: We must receive comments on this proposed AD by November 2,
2015.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
    For service information identified in this proposed AD, contact
Airbus SAS, Airworthiness Office--EAL, 1 Rond Point Maurice Bellonte,
31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5 61
93 45 80; email<EMAIL_ADDRESS>Internet http://www.airbus.com. You may view this referenced service information at the
FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA.
For information on the availability of this material at the FAA, call
425-227-1221.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2015-
3631; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this proposed AD, the regulatory evaluation, any comments
received, and other information. The street address for the Docket
Operations office (telephone<PHONE_NUMBER>) is in the ADDRESSES section.
Comments will be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Vladimir Ulyanov, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue SW., Renton, WA 98057-3356; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2015-3631;
Directorate Identifier 2015-NM-060-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD based on those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Union, has issued EASA
Airworthiness Directive 2015-0037, dated March 2, 2015 (referred to
after this as the Mandatory Continuing Airworthiness Information, or
``the MCAI''), to correct an unsafe condition for certain Airbus Model
A330-200 and -300 series airplanes; Model A330-200 Freighter series
airplanes; and Model A340-200, -300, -500, and -600 series airplanes.
The MCAI states:

    An operator has reported chafed wiring at the upper left corner
of the cockpit door. The investigation concluded that the affected
wire bundle, which supplies a voltage of 115V [volt] AC [alternating
current], was not grounded on the cockpit door frame as part of the
design of A330 and A340 aeroplanes.
    This condition, if not corrected, could result in injury
[electrical shock], in case any person gets in contact with the door
frame.
    Prompted by these findings, Airbus issued SB [service bulletin]
A330-25-3534, SB A340-25-4349 and SB A340-25-5212 to provide
instructions to modify the electrical bonding of the cockpit door.
    For the reasons described above, this [EASA] AD requires
modification of the cockpit door frame structure, installation of
bonding-leads to the upper cockpit door frame and modification of
the upper cockpit door plate cover.

    You may examine the MCAI in the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2015-
3631.

Related Service Information Under 1 CFR Part 51

    Airbus has issued the following service information.
     Service Bulletin A330-25-3534, Revision 01, dated October
23, 2014. This service information describes procedures for modifying
the cockpit door frame structure and installing bonding-leads to the
upper cockpit door frame.
     Service Bulletin A340-25-4349, Revision 01, dated October
27, 2014. This service information describes procedures for modifying
the cockpit door frame structure and installing bonding-leads to the
upper cockpit door frame.
     Service Bulletin A340-25-5212, Revision 01, dated October
27, 2014. This service information describes procedures for modifying
the cockpit door frame structure and installing

bonding-leads to the upper cockpit door frame.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section of this
NPRM.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with the State of Design Authority, we have
been notified of the unsafe condition described in the MCAI and service
information referenced above. We are proposing this AD because we
evaluated all pertinent information and determined an unsafe condition
exists and is likely to exist or develop on other products of these
same type designs.

Explanation of ``RC'' Procedures and Tests in Service Information

    The FAA worked in conjunction with industry, under the
Airworthiness Directive Implementation Aviation Rulemaking Committee
(ARC), to enhance the AD system. One enhancement was a new process for
annotating which procedures and tests in the service information are
required for compliance with an AD. Differentiating these procedures
and tests from other tasks in the service information is expected to
improve an owner's/operator's understanding of crucial AD requirements
and help provide consistent judgment in AD compliance. The procedures
and tests identified as Required for Compliance (RC) in any service
information have a direct effect on detecting, preventing, resolving,
or eliminating an identified unsafe condition.
    As specified in a NOTE under the Accomplishment Instructions of the
specified service information, procedures and tests that are identified
as RC in any service information must be done to comply with the
proposed AD. However, procedures and tests that are not identified as
RC are recommended. Those procedures and tests that are not identified
as RC may be deviated from using accepted methods in accordance with
the operator's maintenance or inspection program without obtaining
approval of an alternative method of compliance (AMOC), provided the
procedures and tests identified as RC can be done and the airplane can
be put back in a serviceable condition. Any substitutions or changes to
procedures or tests identified as RC will require approval of an AMOC.

Costs of Compliance

    We estimate that this proposed AD affects 70 airplanes of U.S.
registry.
    We also estimate that it would take about 27 work-hours per product
to comply with the basic requirements of this proposed AD. The average
labor rate is $85 per work-hour. Required parts would cost about $2,620
per product. Based on these figures, we estimate the cost of this
proposed AD on U.S. operators to be $344,050, or $4,915 per product.
    According to the manufacturer, some of the costs of this proposed
AD may be covered under warranty, thereby reducing the cost impact on
affected individuals. We do not control warranty coverage for affected
individuals. As a result, we have included all costs in our cost
estimate.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. ``Subtitle VII: Aviation
Programs,'' describes in more detail the scope of the Agency's
authority.
    We are issuing this rulemaking under the authority described in
``Subtitle VII, Part A, Subpart III, Section 44701: General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979);
    3. Will not affect intrastate aviation in Alaska; and
    4. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

Airbus: Docket No. FAA-2015-3631; Directorate Identifier 2015-NM-
060-AD.

(a) Comments Due Date

    We must receive comments by November 2, 2015.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all the Airbus airplanes identified in
paragraphs (c)(1), (c)(2), and (c)(3) of this AD, certificated in
any category, except airplanes on which Airbus Modification 203066,
Modification 203074, or Modification 203372 has been embodied in
production.
    (1) Model A330-201, -202, -203, -223, -223F, -243, -243F, -301,
-302, -303, -321, -322, -323, -341, -342, and -343 airplanes; all
manufacturer serial numbers (MSNs); if modified in-service as
specified in Airbus Service Bulletin A330-25-3161, or in production
with Airbus Modification 50014.
    (2) Model A340-211, -212, -213, -311, -312, and -313 airplanes;
all MSNs, if modified in-service as specified in Airbus Service
Bulletin A340-25-4181, or in production with Airbus Modification
50014.
    (3) Model A340-541 airplanes; and Model A340-642 airplanes; all
MSNs.

(d) Subject

    Air Transport Association (ATA) of America Code 25, Equipment/
Furnishings.

(e) Reason

    This AD was prompted by reports of chafed wiring at the upper
left corner of the cockpit door. The affected wire bundle was not
grounded on the cockpit door frame. We are issuing this AD to
prevent electrical

shock injury to persons contacting the cockpit door.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Door Modification and Installation

    Within 24 months after the effective date of this AD, modify the
cockpit door frame structure and install bonding-leads to the upper
cockpit door frame, in accordance with the Accomplishment
Instructions of the applicable service information identified in
paragraphs (g)(1), (g)(2), and (g)(3) of this AD.
    (1) Airbus Service Bulletin A330-25-3534, Revision 01, dated
October 23, 2014. (2) Airbus Service Bulletin A340-25-4349, Revision
01, dated October 27, 2014. (3) Airbus Service Bulletin A340-25-
5212, Revision 01, dated October 27, 2014.

(h) Cover Plate Modification of the Upper Flight Deck Door

    Except for airplanes on which Airbus Modification 52869 or
Modification 53292 has been embodied in production: Before or
concurrently with accomplishing the modification required by
paragraph (g) of this AD, modify the upper cockpit door plate cover,
in accordance with the Accomplishment Instructions of the applicable
service information identified in paragraphs (h)(1), (h)(2), and
(h)(3) of this AD.
    (1) Airbus Service Bulletin A330-25-3534, Revision 01, dated
October 23, 2014. (2) Airbus Service Bulletin A340-25-4349, Revision
01, dated October 27, 2014. (3) Airbus Service Bulletin A340-25-
5212, Revision 01, dated October 27, 2014.

(i) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager
International Branch, ANM-116, Transport Airplane Directorate, FAA,
has the authority to approve AMOCs for this AD, if requested using
the procedures found in 14 CFR 39.19. In accordance with 14 CFR
39.19, send your request to your principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the International Branch, send it to ATTN: Vladimir
Ulyanov, Aerospace Engineer, International Branch, ANM-116,
Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton,
WA 98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Information
may be emailed to<EMAIL_ADDRESS>Before using any
approved AMOC, notify your appropriate principal inspector, or
lacking a principal inspector, the manager of the local flight
standards district office/certificate holding district office. The
AMOC approval letter must specifically reference this AD.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must be
accomplished using a method approved by the Manager, International
Branch, ANM-116, Transport Airplane Directorate, FAA; or the
European Aviation Safety Agency (EASA); or Airbus's EASA Design
Organization Approval (DOA). If approved by the DOA, the approval
must include the DOA-authorized signature.
    (3) Required for Compliance (RC): If any service information
contains procedures or tests that are identified as RC, those
procedures and tests must be done to comply with this AD; any
procedures or tests that are not identified as RC are recommended.
Those procedures and tests that are not identified as RC may be
deviated from using accepted methods in accordance with the
operator's maintenance or inspection program without obtaining
approval of an AMOC, provided the procedures and tests identified as
RC can be done and the airplane can be put back in a serviceable
condition. Any substitutions or changes to procedures or tests
identified as RC require approval of an AMOC.

(j) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) EASA Airworthiness Directive 2015-0037, dated March 2, 2015,
for related information. This MCAI may be found in the AD docket on
the Internet at http://www.regulations.gov by searching for and
locating Docket No. FAA-2015-3631.
    (2) For service information identified in this AD, contact
Airbus SAS, Airworthiness Office--EAL, 1 Rond Point Maurice
Bellonte, 31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96;
fax +33 5 61 93 45 80; email<EMAIL_ADDRESS>
Internet http://www.airbus.com. You may view this service
information at the FAA, Transport Airplane Directorate, 1601 Lind
Avenue SW., Renton, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

    Issued in Renton, Washington, on September 11, 2015.
Michael Kaszycki,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2015-23409 Filed 9-17-15; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Notices]
[Pages 39081-39089]
[FR Doc No: 2016-14084]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78026; File No. SR-FINRA-2016-018]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend
FINRA Rules 2210 (Communications With the Public), 2213 (Requirements
for the Use of Bond Mutual Fund Volatility Ratings), and 2214
(Requirements for the Use of Investment Analysis Tools)

June 9, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 25, 2016, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been substantially prepared by
FINRA. The Commission is publishing this notice to solicit comments on
the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA is proposing amendments that would revise the filing
requirements in FINRA Rule 2210 (Communications with the Public) and
FINRA Rule 2214 (Requirements for the Use of Investment Analysis Tools)
and the content and disclosure requirements in FINRA Rule 2213
(Requirements for the Use of Bond Mutual Fund Volatility Ratings).
    The text of the proposed rule change is available on FINRA's Web
site at http://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.

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

    In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.

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

1. Purpose
Background
    In April 2014, FINRA launched a retrospective review of its
communications with the public rules to assess their effectiveness and
efficiency. In December 2014, FINRA published a report on the
assessment phase of the review.\3\ The report concluded that, while the
rules have met their intended investor protection objectives, they
could benefit from some updating to better align the investor
protection benefits and the economic impacts. To this end, FINRA
recommended consideration of a combination of rule proposals, guidance
and administrative measures, to enhance the efficiency of the rules
with no reduction in investor protection.
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    \3\ See Retrospective Rule Report, Communications with the
Public, December 2014.
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    Pursuant to these recommendations, FINRA initially is proposing
amendments to the filing requirements in FINRA Rule 2210 and FINRA Rule
2214 and the content and disclosure requirements in FINRA Rule 2213.
Proposed Amendments
New Member Communications
    FINRA Rule 2210(c)(1)(A) currently requires new FINRA members to
file with FINRA retail communications used in any electronic or other
public media at least 10 business days prior to use. This requirement
extends for one year from the effective date of the firm's membership.
This new firm filing requirement only applies to broadly disseminated
retail communications, such as generally accessible Web sites, print
media communications, and television and radio commercials.
    While FINRA believes that the requirement for new members to file
their broadly disseminated retail communications serves a useful
purpose, since new members may not be as familiar with the standards
that apply to retail communications as more established members, the
requirement to file these communications at least 10 business days
prior to use can delay members' abilities to communicate with the
public in a timely manner according to FINRA. For example, if a new
member wishes to update its public Web site with new information, the
member must first file the proposed update with FINRA and wait at least
10 business days before it can post this update on its Web site. FINRA
believes that such a delay may hinder its ability to communicate
important information to its existing and prospective customers.
    FINRA believes it can continue to protect investors from potential
harm without imposing this time delay on new members by reviewing new
members' communications on a post-use, rather than a pre-use, basis.
FINRA has found a post-use filing requirement to be an effective
investor protection approach for retail communications with similar
risk profiles as FINRA typically sees from new members. Accordingly,
FINRA proposes to revise the new member filing requirement to require
new members to file retail communications used in electronic or other
public media within 10 business days of first use for a one-year
period, rather than requiring these filings at least 10 business days
prior to use.\4\
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    \4\ See proposed amendments to FINRA Rule 2210(c)(1)(A). This
proposed change also would delete as redundant current rule text
that permits a new member to file a retail communication that is a
free writing prospectus filed with the SEC pursuant to Securities
Act Rule 433(d)(1)(ii), within 10 business days of first use rather
than at least 10 business days prior to first use.

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Investment Company Shareholder Reports
    FINRA currently requires members to file the management's
discussion of fund performance (``MDFP'') portion of a registered
investment company shareholder report if the report is distributed or
made available to prospective investors.\5\ FINRA has required the MDFP
to be filed because members sometimes distribute or make shareholder
reports available to prospective investors to provide more information
about the funds they offer. Thus, FINRA has considered the MDFP to be
subject to the filing requirement for investment company retail
communications.
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    \5\ See, e.g., Notice to Members 99-79 (September 1999)
(``[m]embers are not required to file shareholder reports with
[FINRA] if they are only sent to current fund shareholders. However,
if a member uses a shareholder report as sales material with
prospective investors, the member must file the management's
discussion of fund performance (MDFP) portion of the report (as well
as any supplemental sales material attached to or distributed with
the report) with the Department.'').
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    Although Rule 2210 does not contain any express filing exclusion
for investment company shareholder reports, FINRA has not required
members to file portions of shareholder reports other than the MDFP,
such as the financial statements or schedules of portfolio investments.
FINRA has not regarded these other parts of investment company
shareholder reports to be subject to the filing requirements of Rule
2210, since they serve a regulatory purpose rather than promoting the
sale of investment company securities.
    Investment companies already must file shareholder reports with the
SEC,\6\ and the MDFP typically presents less investor risk than other
types of promotional communications concerning investment companies,
since it usually focuses on the most recent period covered by the
report rather than containing promotional content that is intended to
encourage future investments. Accordingly, FINRA proposes to exclude
from the FINRA filing requirements the MDFP by adding an express
exclusion for annual or semi-annual reports that have been filed with
the SEC in compliance with applicable requirements.\7\ FINRA believes
that it would assist members' understanding of Rule 2210 expressly to
clarify that annual and semi-annual reports that have been filed with
the SEC are not subject to filing. The rule already excludes
prospectuses, fund profiles, offering circulars and similar documents
that have been filed with the SEC. As such, FINRA believes it would be
consistent to add shareholder reports that have been filed with the SEC
to that list.
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    \6\ See Section 30 of the Investment Company Act of 1940 and
Rules 30a-1 and 30b1-1 thereunder.
    \7\ See proposed amendments to FINRA Rule 2210(c)(7)(F). To the
extent that a member distributes or attaches registered investment
company sales material along with the fund's shareholder report,
such material would remain subject to filing under Rule 2210.
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Offering Documents Concerning Unregistered Securities
    Rule 2210(c)(7)(F) currently excludes from filing ``prospectuses,
preliminary prospectuses, fund profiles, offering circulars and similar
documents that have been filed with the SEC or any state, or that is
exempt from such registration . . .'' (emphasis supplied). The filing
exclusion is intended (and has been interpreted by FINRA) to exclude
issuer-prepared offering documents concerning securities offerings that
are exempt from registration.
    Accordingly, FINRA is proposing to amend Rule 2210(c)(7)(F) to make
this intent more clear, and to avoid any confusion concerning the
phrase ``or that is exempt from such registration.'' As revised, Rule
2210(c)(7)(F) would exclude from filing, among other things, ``similar
offering documents concerning securities offerings that are exempt from
SEC or state registration requirements.'' While FINRA believes that
this amendment will clarify this filing exclusion, it does not believe
that it represents a substantive change to the current filing exclusion
for unregistered securities' offering documents.
Backup Material for Investment Company Performance Rankings and
Comparisons
    A member that files a retail communication for a registered
investment company that contains a fund performance ranking or
performance comparison must include a copy of the ranking or comparison
used in the retail communication.\8\ When FINRA adopted this
requirement, prior to the Internet, FINRA staff did not have ready
access to the sources of rankings or comparisons. Today, this
information typically is easily available online. FINRA therefore
proposes to eliminate the requirement to file ranking and comparison
backup material and instead expressly to require members to maintain
back-up materials as part of their records.\9\
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    \8\ See FINRA Rule 2210(c)(3)(A).
    \9\ See proposed amendments to FINRA Rules 2210(b)(4)(A)(vi) and
2210(c)(3)(A).
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Generic Investment Company Communications
    FINRA Rule 2210(c)(3)(A) requires members to file within 10
business days of first use retail communications ``concerning''
registered investment companies. FINRA proposes to revise this filing
requirement to cover only retail communications that promote a specific
registered investment company or family of registered investment
companies. Thus, members would no longer be required to file generic
investment company retail communications.
    An example of such a generic communication would be a retail
communication that describes different mutual fund types and features
but does not discuss the benefits of a specific fund or fund family.
This type of material typically is intended to educate the public about
investment companies in general or the types of products that a member
offers, and thus does not present the same risks of including
potentially misleading information as promotional communications about
specific funds or fund families.
Investment Analysis Tools
    ``Investment analysis tools'' are interactive technological tools
that produce simulations and statistical analyses that present the
likelihood of various investment outcomes if certain investments are
made or certain investment strategies or styles are undertaken.
Pursuant to FINRA Rules 2210(c)(3)(C) and 2214(a), members that intend
to offer an investment analysis tool must file templates for written
reports produced by, or retail communications concerning, the tool,
within 10 business days of first use. Rule 2214 also requires members
to provide FINRA with access to the tool itself, and provide customers
with specific disclosures when members communicate about the tool, use
the tool or provide written reports generated by the tool.
    Since Rule 2214 became effective in 2005,\10\ FINRA has found that
members have largely complied with the Rule's requirements applicable
to templates for written reports produced by investment analysis tools
and retail communications concerning such tools. FINRA does not believe
that the filing requirements for these templates and retail
communications are necessary given this history and in light of the
investor protection afforded by other content standards and the
requirement that members provide access to the tools

and their output upon request of FINRA staff. Accordingly, FINRA
proposes to eliminate the filing requirements for investment analysis
tool report templates and retail communications concerning such tools
and instead require members to provide FINRA staff with access to
investment analysis tools upon request.\11\
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    \10\ See Notice to Members 04-86 (November 2004).
    \11\ See proposed amendments to FINRA Rules 2210(c)(3) and
2214(a).
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Filing Exclusion for Templates
    Members are not required to file retail communications that are
based on templates that were previously filed with FINRA but changed
only to update recent statistical or other non-narrative
information.\12\ However, members are required to re-file previously
filed retail communications that are subject to filing under FINRA Rule
2210(c) to the extent that the member has updated any narrative
information contained in the prior filing. Often these re-filed retail
communications are templates for fact sheets concerning particular
funds or products and provide quarterly information concerning a
product's performance, portfolio holdings and investment objectives.
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    \12\ See FINRA Rule 2210(c)(7)(B).
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    Through its review of updated fund fact sheets and other similar
templates, FINRA has found that certain narrative information has not
presented significant risk to investors, and that these narrative
updates typically are consistent with applicable standards. In
particular, narrative updates that are not predictive in nature and
merely describe market events that occurred during the period covered
by the communication, or that merely describe changes in a fund's
portfolio, rarely have presented significant investor risks. In
addition, members often will update narrative information concerning a
registered investment company, such as a description of a fund's
investment objectives, based on information that is sourced from the
fund's regulatory documents filed with the SEC. In both cases, FINRA
believes that the costs associated with filing these types of narrative
updates exceed the investor benefits associated with FINRA staff review
of these updates.
    Accordingly, FINRA proposes to expand the template filing exclusion
also to allow members to include updated non-predictive narrative
descriptions of market events during the period covered by the
communication and factual descriptions of portfolio changes without
having to refile the template, as well as updated information that is
sourced from a registered investment company's regulatory documents
filed with the SEC.\13\
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    \13\ See proposed amendments to FINRA Rule 2210(c)(7)(B).
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Bond Mutual Fund Volatility Ratings
    FINRA Rule 2213 permits members to use communications that include
ratings provided by independent third parties that address the
sensitivity of the net asset value of an open-end management investment
company's bond portfolio to changes in market conditions and the
general economy, subject to a number of requirements. For example,
these communications must be accompanied or preceded by the bond fund's
prospectus and contain specific disclosures. Members currently must
file retail communications that include bond mutual fund volatility
ratings at least 10 business days prior to first use, and withhold them
from publication or circulation until any changes specified by FINRA
have been made.\14\
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    \14\ FINRA Rules 2210(c)(2)(C) and 2213(b) and (c).
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    FINRA believes that some of these requirements have discouraged
members from including bond fund volatility ratings in their
communications due to the significant compliance burdens associated
with doing so, and the level of disclosures required to accompany such
ratings. FINRA has found that, since Rule 2213 first became effective
in 2000,\15\ members have rarely, if ever, filed communications that
contain bond fund volatility ratings. In general, in the few cases in
which members filed such communications with FINRA, the staff has found
that they have met applicable standards.
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    \15\ See Notice to Members 00-23 (April 2000).
---------------------------------------------------------------------------

    Given that bond fund volatility ratings may provide useful
information to investors, and that Rule 2213 as currently drafted
appears to have discouraged members from including these ratings in
their communications, FINRA believes it is appropriate to revise the
rule to reduce some of these burdens while continuing to include
requirements that it believes will protect investors. Accordingly,
FINRA proposes to modify some of Rule 2213's requirements.
    Consistent with the filing requirements for other retail
communications about specific registered investment companies, the
proposal would no longer require a retail communication that includes a
bond fund volatility rating to be accompanied or preceded by a
prospectus for the fund, and would permit members to file these
communications within 10 business days of first use rather than prior
to use.\16\
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    \16\ See proposed amendments to FINRA Rules 2210(c) and 2213(b).
This change relates only to Rule 2213 and does not affect a member's
obligation to deliver a prospectus under the Securities Act or for
Investment Company Act companies.
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    FINRA believes that the requirement that any retail communication
including a bond fund volatility rating be accompanied or preceded by a
fund prospectus increases the burdens associated with these
communications without adding commensurate investor protection. Except
in rare circumstances due to operational hardship, all mutual fund
prospectuses are available online, and thus an investor can easily
access the prospectus, if needed.
    Similarly, FINRA believes that requiring members to file these
retail communications at least 10 business days prior to use and to
withhold them from publication or circulation until any changes
specified by the Department have been made does not provide appreciably
greater investor protection. According to FINRA, this pre-use filing
requirement inhibits a member's ability to circulate retail
communications containing volatility ratings in a timely manner.
Moreover, members still would be required to file these communications
within 10 business days of first use, so that if they contain
misleading content, the Department staff can take appropriate measures
to correct any problems, such as recommending changes to the
communication, or directing the member to cease using the communication
with the public. FINRA has found a post-use filing requirement to be an
effective investor protection approach for most retail communications
with similar risk profiles.\17\
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    \17\ As a general matter, FINRA does not believe that retail
communications that include bond fund volatility ratings present
risks of investor harm that are comparable to other retail
communications that require pre-use filing, such as retail
communications that include self-created rankings or comparisons or
retail communications concerning security futures. See FINRA Rule
2210(c)(2)(A) and (B). Retail communications that include self-
created rankings or comparisons present a greater risk of being
misleading than bond fund volatility ratings, since they are not
created by an entity that is independent of the member. In addition,
security futures are more complex and potentially more volatile than
most bond mutual funds.
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    The proposal also would streamline the content and disclosure
requirements. In particular, the amendments would eliminate the
requirements: (1) That all disclosures be contained in a separate
Disclosure Statement; (2) to disclose all current bond mutual fund
volatility ratings that have been issued with respect to the

fund; (3) to explain the reason for any change in the current rating
from the most recent prior rating; (4) to describe the criteria and
methodologies used to determine the rating; (5) to include a statement
that not all bond funds have volatility ratings; and (6) to include a
statement that the portfolio may have changed since the date of the
rating.
    FINRA believes that many of these requirements are unnecessary in
light of the content requirements that still will apply to such retail
communications. For example, members still would not be permitted to
refer to a volatility rating as a ``risk'' rating, and would have to
incorporate the most recently available rating and reflect information
that, at a minimum, is current to the most recent calendar quarter end.
The criteria and methodology used to determine the rating still would
have to be based exclusively on objective, quantifiable factors, and
such communications would have to include a link to, or Web site
address for, a Web site that includes the criteria and methodology.
Communications would have to provide the name of the entity that issued
the rating, the most current rating and date for the rating, and
whether consideration was paid for the rating, as well as a description
of the types of risks the rating measures.
    FINRA believes that, as long as the required disclosures are
provided, it is not necessary that they appear in a separate Disclosure
Statement. FINRA also believes it is unnecessary to disclose all other
current volatility ratings assigned to the advertised fund, since this
requirement is not imposed under other similar rules. For example,
FINRA Rule 2214 allows members to provide fund ranking information
without also requiring the member to disclose all rankings assigned by
other ranking entities. The other disclosure requirements add little
understanding about the rating presented, while adding voluminous text
to the retail communication. In addition, if an investor does seek more
information about the criteria and methodology used to create the
rating, this information will be available via a hyperlink to separate
Web site.
    If the Commission approves the proposed rule change, FINRA will
announce the implementation date of the proposed rule change in a
Regulatory Notice to be published no later than 60 days following
Commission approval. The effective date will be no later than 180 days
following publication of the Regulatory Notice announcing Commission
approval.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\18\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change will
improve efficiency and reduce regulatory burden by reducing the filing
requirements applicable to retail communications distributed by members
and streamlining the content and disclosure requirements for retail
communications that include bond mutual fund volatility ratings, while
maintaining necessary investor protections.
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    \18\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. FINRA has undertaken an
economic impact assessment, as set forth below, to analyze the
regulatory need for the proposed rulemaking, its potential economic
impacts, including anticipated costs and benefits, and the alternatives
FINRA considered in assessing how to best meet its regulatory
objectives.
Economic Impact Assessment
1. Regulatory Need
    As discussed previously, based on the retrospective review of rules
governing communications with the public, FINRA has identified several
areas where updating the rules would better provide information that
may be useful to investors while maintaining important investor
protections.
2. Economic Baseline
    The economic baseline used to evaluate the impact of the proposed
amendments is the current regulatory framework. This baseline serves as
the primary point of comparison for assessing economic impacts,
including the incremental benefits and costs of the proposed rule
change. To better understand the members affected by this proposal and
the filings by these members, FINRA reviewed the filing history and its
comments on the communications filed in 2014. Based on this review, 770
members filed communications with FINRA in 2014, and approximately 40%
to 50% of these members filed communications specific to the
requirements in this proposal.
    In 2014, 79 members filed communications pursuant to the new firm
filing requirement, 183 filed investment company shareholder reports,
155 filed backup material for investment company performance rankings
and comparisons, 51 filed communications associated with investment
analysis tools, 218 filed updated fund fact sheets or other similar
templates, and three filed communications that included bond mutual
fund volatility ratings.\19\ Approximately 58% of the members that
filed communications specific to the requirements in this proposal were
small, whereas approximately 19% and 23% of the members were mid-sized
and large, respectively.\20\ In 2014, these members filed approximately
300 communications pursuant to the new firm filing requirement, 5,000
investment company shareholder reports, 13,500 filings of backup
material for investment company performance rankings and comparisons,
590 filings related to investment analysis tools, and approximately
23,800 filings of applicable templates. These filings were largely
concentrated amongst a few members that filed frequently. For example,
the 20 members with the highest number of filings overall accounted for
over 50% of the filings related to this proposal.
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    \19\ FINRA cannot precisely identify the number of members that
filed generic investment company communications or the number of
such filings. However, based on experience and review of filings in
2014, FINRA believes that the number of members that filed generic
communications was approximately the same as the number of members
that filed updated fund fact sheets or other similar templates.
    \20\ Based on FINRA By-Law, Article I (Definitions), members
with 150 or fewer registered persons are classified as small,
members with 151-499 persons are classified as mid-size, and members
with 500 or more persons are classified as large.
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3. Economic Impacts
    The proposed amendments would impact members that are subject to
the filing, content and disclosure requirements in this proposal. As
discussed above, approximately 40% to 50% of the 770 members that in
2014 filed communications specific to the requirements in this
proposal. These members would be impacted directly by the proposed
amendments.
i. Anticipated Benefits
    The amendments will benefit members by reducing their costs
associated with the filing requirements in this proposal. These cost
savings

would include savings on filing fees from the proposed elimination or
reduction in the scope of certain filing requirements.
    Based on review of communication filings in 2014 and historical
experience with such filings, FINRA preliminarily estimates that, as a
result of the proposed amendments, there would be a reduction in the
filings of investment company shareholder reports of 5,000 filings per
year, and a potential decline in the filings of generic investment
company communications of approximately 3,000 filings per year. FINRA
further estimates that the anticipated decline in filings related to
investment analysis tools and filings of templates would be
approximately 500 and 13,000 filings per year, respectively.\21\
Overall, FINRA estimates that as a result of the proposed amendments,
the total communications filings would be reduced by 21,500 filings per
year.
---------------------------------------------------------------------------

    \21\ Based on staff experience, FINRA believes that some members
would continue to file communications even after the elimination of
applicable filing requirements. FINRA's estimates for reduction in
number of filings attempt to account for such voluntary filings.
---------------------------------------------------------------------------

    Accordingly, based on an average filing fee of $185 in 2014, FINRA
preliminarily estimates that the proposed amendments would reduce the
filing fees for members by approximately $4 million per year.\22\ In
addition to this reduction in filing fees, members would likely also
benefit from a decrease in other direct costs associated with filings,
such as staff, systems and infrastructure costs, or third-party legal
and consulting fees associated with the requirements applicable to this
proposal. Since these costs account for a significant proportion of
members' overall direct costs, any reduction in these costs as a result
of the proposed amendments could be material. For example, based on the
survey results from the assessment phase of FINRA's retrospective rule
review, FINRA estimates that the direct costs other than filing fees
(such as staffing, systems and infrastructure costs, third-party legal
and consulting fees) account for more than 90% of the overall
advertising-related compliance costs for most members that file
communications.\23\ Accordingly, the overall reduction in direct costs
associated with communication filings could be larger than the
anticipated reduction in filing fees discussed above. Moreover, the
proposed elimination or reduction in the scope of certain filing
requirements may also reduce disruption in members' advertising efforts
associated with these filings. In addition, the streamlined disclosure
and content requirements for the presentation of bond fund volatility
ratings in communications may save members additional costs associated
with creating and reviewing disclosure.
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    \22\ As discussed above, the relevant communication filings are
largely concentrated amongst a few members that file frequently.
Accordingly, the anticipated benefits, including reduction in filing
fees and other direct costs associated with filing, would also
largely accrue to these frequent filers.
    \23\ As part of the assessment phase of its retrospective review
of FINRA's communications with the public rules, the staff conducted
a survey of the entire membership to seek feedback on the
effectiveness and efficiency of the rules, including direct and
indirect costs associated with the current rules. Based on the
survey responses, FINRA estimates that for approximately 52% of the
members that file communications with FINRA, direct costs other than
filing fees, such as staff, systems and infrastructure costs, or
third-party legal and consulting fees, account for more than 90% of
their overall direct costs.
---------------------------------------------------------------------------

    The proposed amendments may generate benefits to the public as they
may also encourage members to communicate additional valuable
information to investors. For example, the elimination of the costs
associated with the filing requirement for generic, educational
communications regarding investment companies may encourage members to
provide more frequent and timely information to investors. Similarly,
the changes to the template exclusion from the filing requirement for
investment company communications may enable members to provide
investors with more timely explanations of market events as well as
changes in a fund's portfolio, particularly for those firms that
voluntarily file all retail communications prior to use and wait to
receive the staff's response letter before distributing retail
communications (instead of filing retail communications within 10 days
of first use as required). Under the expanded filing exception for
templates, it is likely that these firms may distribute the updated
communications without choosing to file them, thus allowing them to
communicate with investors sooner.
ii. Anticipated Costs
    Members that are subject to the filing, content and disclosure
requirements in this proposal would likely incur costs associated with
updating their policies and procedures. These costs would include
training their advertising review and other staff associated with
communications with the public. Members may also need to make updates
to systems to reflect changes in the filing requirements. FINRA,
however, anticipates that these costs would likely be minimal relative
to the cost savings from the proposed amendments. FINRA would also
incur costs associated with updating its Advertising Regulation
Electronic Files (AREF) system as well as training the relevant staff
on the amendments in the proposal.
iii. Other Economic Impacts
    FINRA also considered the potential negative impacts of the
proposed amendments to investors. FINRA believes that the proposed
exclusions and streamlining of filing requirements would not diminish
investor protection because the applicable communications pose little
risk to investors. For example, investment company shareholder reports,
generic investment company retail communications, and non-predictive
narrative descriptions about market events in report templates
generally are low-risk communications in FINRA's view.
    Some members choose to file some mutual fund advertising materials
on a voluntary basis. Members that choose to do so base their decision
on business needs and not FINRA requirements. The proposed rule change
would not limit the ability of members to continue to make voluntary
filings if they should deem them to be valuable.
4. Alternatives
    In considering how to best meet its regulatory objectives, FINRA
considered alternatives to particular features of this proposal. For
example, FINRA considered narrowing the new member filing requirement
to cover only public Web sites since new members primarily reach out to
their existing and potential customers by developing Web sites. As
discussed in more detail below, PIABA raised concerns about potential
investor harm if FINRA only reviews new members' Web sites without
reviewing other types of public media advertising, such as television
and radio commercials and newspaper advertisement. FINRA reviewed the
communications filing history and its comments on the communications
filed by new members and found that a higher proportion of new member
communications require revisions to be compliant with the applicable
standards, compared to all filed communications. As a result, to
maintain the same level of investor protection, FINRA has determined
not to narrow the new member filing requirement to public Web sites.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

Background
    In May 2015, FINRA published Regulatory Notice 15-16 (the
``Notice''), requesting comment on proposed amendments that would
revise the filing requirements in FINRA Rule 2210 and FINRA Rule 2214
and the content and disclosure requirements in FINRA Rule 2213 (the
``Notice proposal''). A copy of the Notice is attached as Exhibit 2a.
The comment period expired on July 2, 2015. FINRA received 11 comments
in response to the Notice. All but one commenter supported the
proposal. A list of the commenters in response to the Notice is
attached as Exhibit 2b, and copies of the comment letters received in
response to the Notice are attached as Exhibit 2c.\24\ A summary of the
comments and FINRA's response is provided below.
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    \24\ See Exhibit 2b for a list of abbreviations assigned to
commenters.
---------------------------------------------------------------------------

Continuation of Retrospective Review
    While many comments supported the proposal, some commenters
recommended that FINRA continue its retrospective review of the
communications rules to address other issues. Commenters urged FINRA to
update the rules governing social media, mobile devices and electronic
communications,\25\ performance advertising,\26\ the amount of
disclosure required in print advertising,\27\ the content standards
under FINRA Rule 2210(d),\28\ and options communications.\29\
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    \25\ See CAI, Fidelity, SIFMA, TD Ameritrade, and Vanguard.
    \26\ See TD Ameritrade.
    \27\ See Fidelity and TD Ameritrade.
    \28\ See FSI.
    \29\ See TD Ameritrade.
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    Commenters also recommended that FINRA harmonize the differences
between its communications rules and SEC rules governing investment
adviser communications, particularly with respect to rules governing
projections and performance information,\30\ and that FINRA update its
electronic filing system to allow members to file materials in other
than PDF format.\31\ Wells Fargo suggested that FINRA clarify what
constitutes a ``public appearance'' under Rule 2210(f)(3). The ICI
urged FINRA to codify clear disclosure standards for retail
communications concerning closed-end funds and eliminate the filing
requirement for these communications. The CAI recommended that FINRA
take a more risk-based approach of differentiating communications that
should be filed and reviewed, and those that should not.
---------------------------------------------------------------------------

    \30\ See Fidelity and Wells Fargo.
    \31\ See CAI.
---------------------------------------------------------------------------

    While FINRA states that it appreciates these recommendations, FINRA
does not believe it is necessary to address all of these issues as part
of this proposed rule change. The amendments that FINRA has proposed in
this filing are only the first step in addressing the results of the
assessment phase of its retrospective review of the communications
rules. FINRA continues to consider additional rule changes related to
the areas raised by commenters and will address those topics as part of
its future proposed rule changes, as appropriate.
New Member Filing Requirement
    In addition to changing the filing requirement for new members from
a pre-use to a post-use requirement, the Notice proposal would have
narrowed the types of retail communications subject to this
requirement. Currently new members must file all retail communications
used in electronic or other public media, including radio and
television advertisements, newspaper and magazine ads, and public Web
sites. The Notice proposal would have narrowed the new member filing
requirement to cover only public Web sites.
    PIABA urged FINRA not to narrow the current new member filing
requirements. PIABA stated that if FINRA reviews only new members' Web
sites without reviewing other types of public media advertising, such
as television and radio commercials and newspaper advertisements,
investors potentially could be harmed. PIABA also noted that pre-use
filing offers more investor protection than post-use filing, since pre-
use filing allows FINRA staff to review communications prior to their
distribution.
    While the deficiencies noted by FINRA staff on new members' filed
communications are still relatively low, the staff does find that a
higher percentage of new members' communications require revisions to
be compliant with applicable standards as compared with all
communications filed with FINRA. Accordingly, FINRA has determined not
to narrow the scope of public media communications required to be filed
by new members.
    Nevertheless, FINRA still believes it is appropriate to allow new
members to file these communications on a post-use rather than a pre-
use basis. In this regard, a post-use filing requirement allows new
members to create and alter their public media communications in a
timely manner (such as a change to a new member's Web site) without the
need to wait for FINRA staff review before doing so. In addition, new
members still would be required to approve public media communications
prior to use, and such communications would remain subject to the
communications rules' content standards. FINRA believes this revision
appropriately balances the need to protect investors with making its
communications rules less burdensome and resource-consuming for
members.
Filing Exclusion for Shareholder Reports
    FINRA currently requires members to file the MDFP portion of
registered investment company shareholder reports. The Notice proposal
would have amended FINRA Rule 2210(c)(7)(F) to exclude from filing
annual and semi-annual shareholder reports that have been filed with
the SEC.
    Two commenters supported this proposed change on the ground that
members are already required to file these reports with the SEC, and
filing the MDFP with FINRA is therefore redundant and unnecessary.\32\
The ICI noted that the proposed exclusion is somewhat ambiguous, since
it appears to apply only if the report has been filed with the SEC
prior to or perhaps contemporaneously with making the report available
to prospective investors. The ICI noted that SEC rules require funds to
file their reports with the SEC ``not later than 10 days after the
transmission to stockholders.'' \33\
---------------------------------------------------------------------------

    \32\ See ICI and Vanguard.
    \33\ See Investment Company Act Rule 30b2-1(a).
---------------------------------------------------------------------------

    PIABA opposed this change. PIABA asserted that SEC staff rarely
reviews shareholder reports filed with the SEC given the volume of
filings it receives on a daily basis, and that therefore FINRA should
continue to require the MDFP to be filed and reviewed by FINRA staff.
    FINRA agrees that this proposed change would not require members to
file fund shareholder reports prior to or contemporaneously with making
the reports available to prospective investors, as long as the reports
are filed in compliance with SEC rule requirements. To clarify this
intent, FINRA is modifying the proposed amendment to Rule 2210(c)(7)(F)
to specify that such reports must be filed with the SEC ``in compliance
with applicable requirements.''
    FINRA has found through its filing program that the MDFPs in
shareholder reports rarely have raised issues

requiring members to revise or withdraw reports from circulation. FINRA
also notes that, while the SEC may not review all securities-related
filings contemporaneous with their submission, the staff can review
higher risk communications as needed. FINRA believes that removing this
filing requirement would not harm investors and would allow FINRA to
allocate its staff resources more efficiently to focus on reviewing
higher risk communications more expeditiously.
Backup Ranking Data
    The Notice proposal would have eliminated the current requirement
to include a copy of an investment company performance ranking or
comparison used in any retail communication that contains such a
ranking or comparison. TD Ameritrade supported the elimination of this
requirement given that this information typically is available online.
PIABA opposed this change, apparently believing that it would
completely eliminate the requirement to file retail communications that
contain performance rankings or comparisons, rather than merely
eliminating the requirement to file the backup data.
    FINRA continues to believe this change is appropriate and will
relieve members of the additional burden of having to file backup
ranking data, given the online availability of such data. The proposal
will not eliminate the requirement to file retail communications that
contain performance rankings or comparisons. In addition, the proposal
would require members to maintain the backup materials for inspection.
Accordingly, FINRA believes PIABA's concerns are misplaced.
Generic Investment Company Communications
    Commenters generally supported the proposal to revise the filing
requirement for retail communications concerning registered investment
companies to cover only those communications that promote or recommend
a specific registered investment company or family of registered
investment companies.\34\
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    \34\ See CAI, TD Ameritrade, and Vanguard.
---------------------------------------------------------------------------

    The CAI had a number of recommendations for changes and
clarifications. First, it asked FINRA to confirm that the mere mention
of the name of an investment company does not necessarily constitute
the promotion or recommendation of the investment company, and that
this determination needs to be made based on the full context of the
communication. Second, it requested that FINRA clarify that the
proposed change would exclude from filing generic retail communications
concerning variable annuity contracts that do not promote or recommend
a particular contract.
    Third, it noted that this proposed change might have the unintended
effect of increasing compliance costs for members, since members that
create generic investment company communications would no longer file
them, and thus other members that use these communications would no
longer be able to rely on the principal approval exception contained in
FINRA Rule 2210(b)(1)(C).\35\ The CAI recommended that FINRA revise
Rule 2210(b)(1)(C) to create an exception from the principal approval
requirements for generic retail communications created by a third
party, even if the third party has not filed it with FINRA. The CAI
also suggested that FINRA consider creating a principal approval
exception for any third-party communication that is reviewed and
approved by another member.
---------------------------------------------------------------------------

    \35\ Rule 2210(b)(1)(C) provides that the principal approval
requirements do not apply to a retail communication if (i) another
member has filed it with FINRA and received a letter from FINRA
stating that it appears consistent with applicable standards, and
(ii) the member using it in reliance upon this exception has not
materially altered it and will not use it in a manner inconsistent
with the conditions contained in the FINRA review letter.
---------------------------------------------------------------------------

    The IPA recommended that FINRA create a similar filing exclusion
for retail communications concerning unlisted real estate investment
trusts (REITs) and direct participation programs (DPPs) that do not
promote or recommend a particular product.
    The determination of whether a retail communication promotes or
recommends a specific registered investment company or family of
investment companies will always be a facts-and-circumstances analysis.
Accordingly, FINRA does not believe it would be productive to speculate
whether particular types of retail communications that mention the name
of a specific investment company would have to be filed.
    The filing requirement for retail communications concerning
registered investment companies applies to communications concerning
mutual funds, exchange-traded funds, variable insurance products,
closed-end funds, and unit investment trusts.\36\ Accordingly, by its
terms, this filing requirement would not apply to a retail
communication concerning a variable annuity contract unless it promoted
or recommended a specific contract or family of such contracts (e.g., a
retail communication concerning variable contracts that promoted or
recommended a specific insurance company).
---------------------------------------------------------------------------

    \36\ See FINRA Rule 2210(c)(3)(A).
---------------------------------------------------------------------------

    FINRA declines to revise the exception from the principal approval
requirements for retail communications under FINRA Rule 2210(b)(1)(C).
Part of the reason for this exception is that communications covered by
this provision must have been filed with FINRA and received a letter
stating that the communication appears consistent with applicable
standards. FINRA does not believe an exception that excludes this
filing requirement would offer the same level of investor protection.
    FINRA also declines to create another filing exclusion for generic
retail communications concerning REITs or DPPs. A filing exclusion for
retail communications concerning REITs is unnecessary in FINRA's view,
since FINRA Rule 2210 currently does not require retail communications
concerning REITs to be filed. FINRA believes that DPPs often are more
complex and less familiar to retail investors than registered
investment companies; accordingly FINRA believes that a filing
requirement for generic retail communications concerning DPPs still
makes sense in light of the investor protection offered by this
requirement.
Investment Analysis Tools
    TD Ameritrade supported the proposed elimination of the current
filing requirement for report templates and retail communications
concerning investment analysis tools. However, it recommended that
FINRA also eliminate the disclosure requirements in FINRA Rule 2214(c)
for retail communications that promote investment analysis tools.\37\
TD Ameritrade also stated that FINRA staff has inappropriately applied
Rule 2214 to retirement planning calculators.
---------------------------------------------------------------------------

    \37\ FINRA Rule 2214(c) requires written reports generated by
investment analysis tools and related retail communications to: (1)
Describe the criteria and methodology used, including the tool's
limitations and key assumptions; (2) explain that results may vary
with each use and over time; (3) if applicable, describe the
universe of investments considered in the analysis, explain how the
tool determines which securities to select, disclose if the tool
favors certain securities and, if so, explain the reason for the
selectivity, and state that other investments not considered may
have characteristics similar or superior to those being analyzed;
and (4) display a specific legend regarding the hypothetical nature
of the projections created by the tool.
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    FINRA does not believe it is necessary to revise Rule 2214(c) as
suggested. Rule 2214.06 already provides that a retail communication
that contains only an

incidental reference to an investment analysis tool need not include
the disclosures required by Rule 2214(c). In addition, Rule 2214.06
provides that if a retail communication refers to an investment
analysis tool in more detail but does not provide access to the tool or
the results generated by the tool, the retail communication may exclude
some of the disclosures required by Rule 2214(c). FINRA believes this
provision already provides appropriate flexibility and regulatory
relief for retail communications concerning investment analysis tools.
    As for the comment that FINRA staff has inappropriately applied
current Rule 2214 to retirement planning calculators, FINRA believes
that these concerns are best addressed through discussions with FINRA
staff rather than through a proposed change to Rule 2214.
Template Filing Exclusion
    Multiple commenters supported the proposed change to the current
filing exclusion for templates contained in FINRA Rule 2210(c)(7)(B),
which currently does not require a member to file a retail
communication that is based on a template that was previously filed
with FINRA and where the changes are limited to updates of more recent
statistical and other non-narrative information.\38\ The Notice
proposal would have allowed a member that had previously filed a retail
communication template also to update non-predictive narrative
information that describes market events during the period covered by
the communication or factual changes in portfolio composition.
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    \38\ See CAI, ICI, and TD Ameritrade.
---------------------------------------------------------------------------

    The CAI recommended that FINRA allow members to make non-material
changes to narrative disclosures, as well as updates to non-predictive
descriptions of market events and market commentary. Two other
commenters recommended that the filing exclusion for templates be
revised to allow members to include other non-predictive narrative
information, provided that it comes from either an independent data
provider or is sourced from an investment company's regulatory
documents filed with the SEC.\39\
---------------------------------------------------------------------------

    \39\ See Fidelity and ICI. The ICI suggested that this revision
only cover data received from ``ranking entities'' as that term is
defined in FINRA Rule 2212, rather than any third-party data
provider.
---------------------------------------------------------------------------

    PIABA opposed the proposed change to the template filing exclusion,
arguing that funds sometimes write misleading descriptions of market
events to explain losses in a fund's net asset value. PIABA gave as an
example of this practice a 2007 FINRA enforcement action involving a
fund fact sheet.
    FINRA Rule 2210(c)(7)(A) already contains a filing exclusion for
retail communications that previously were filed with FINRA and that
are used without material change. Accordingly, FINRA does not believe
it is necessary to revise the proposed change to Rule 2210(c)(7)(B) to
allow non-material changes.
    FINRA agrees that it makes little sense for members to refile
previously filed templates if the only changes to the template are
sourced from an investment company's regulatory documents filed with
the SEC. For example, if a fund alters the description of its
investment objectives in its prospectus and files these changes with
the SEC, and a member wants to make a corresponding change to a
previously filed fact sheet concerning the fund, there is little need
to file such an update with FINRA.
    Accordingly, FINRA is revising its proposed changes to the template
filing exclusion also to cover updated information that is sourced from
an investment company's regulatory documents filed with the SEC. FINRA
declines to expand this filing exclusion also to cover any information
that comes from an independent data provider regardless of its source,
as that information is not subject to the same level of regulatory
scrutiny as information in documents required by SEC rules. Therefore,
if a narrative change to a template is not sourced from SEC filings,
FINRA believes that such changes should require the member to refile
the template, even if this information comes from an independent third-
party data provider.
    FINRA recognizes that it is always possible that a member will use
this filing exclusion to include non-predictive narrative information
that is misleading in nature. Nevertheless, FINRA has found over the
years from reviewing thousands of template updates that non-predictive
narrative information concerning market events or portfolio composition
has rarely generated comments from the staff and generally has been
low-risk in nature. Based on this experience, FINRA believes the
proposed changes to the template filing exclusion will improve staff
efficiency without sacrificing investor protection. Moreover, any
updates to templates remain subject to Rule 2210's content standards.
Accordingly, if a member did prepare a misleading update to a template,
FINRA could still reach that conduct and bring an action for violation
of the communications with the public rules.
Bond Fund Volatility Ratings
    PIABA urged FINRA not to modify Rule 2213's requirements applicable
to retail communications that include a bond mutual fund volatility
rating. PIABA argued that past FINRA enforcement actions involving the
sale of bond funds demonstrate that bond funds should be more highly
regulated.
    FINRA disagrees with this comment. The proposed changes to Rule
2213 will not eliminate the filing requirement for any retail
communication concerning bond funds, regardless of whether such filing
includes a volatility rating. Even with the changes, members will still
be required to file retail communications that contain a bond fund
volatility rating within 10 business days of first use. Moreover, as
revised, Rule 2213 would still require members to include many
disclosures concerning the risks and limitations of such ratings.
Accordingly, FINRA believes that revised Rule 2213 still would offer
ample protection to investors and involve FINRA staff review of such
communications.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2016-018 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange

Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-FINRA-2016-018. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of FINRA. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-FINRA-2016-018 and should be
submitted on or before July 6, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\40\
---------------------------------------------------------------------------

    \40\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-14084 Filed 6-14-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 186 (Wednesday, September 27, 2023)]
[Notices]
[Page 66473]
[FR Doc No: 2023-20995]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4591-DR; Docket ID FEMA-2023-0001]

Poarch Band of Creek Indians; Amendment No. 7 to Notice of a
Major Disaster Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice amends the notice of a major disaster declaration
for the Poarch Band Creek Indians (FEMA-4591-DR), dated March 28, 2021,
and related determinations.

DATES: This change occurred on June 29, 2023.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency
(FEMA) hereby gives notice that pursuant to the authority vested in the
Administrator, under Executive Order 12148, as amended, Robert D.
Samaan, of FEMA is appointed to act as the Federal Coordinating Officer
for this disaster.
    This action terminates the appointment of Gracia B. Szczech as
Federal Coordinating Officer for this disaster.

    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households In Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050, Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance (Presidentially
Declared Disasters); 97.039, Hazard Mitigation Grant.

Deanne Criswell,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2023-20995 Filed 9-26-23; 8:45 am]
BILLING CODE 9111-23-P


                       Notes from Meeting with Qualanex

Attended by:
Qualanex Staff:	Gerard Sartori, Dan Ezell, and Bill Turpin

PharmEcology Staff:	Charlotte Smith

EPA Staff:	Jim O'Leary, Kristin Fitzgerald, Narendra Chaudhari, Tim McMahon

Date:			March 19, 2015

EPA met with representatives from Qualanex and PharmEcology.   Qualanex  described the development of their new system for processing pharmaceuticals for manufacturer's credit, call Qosk.


[Federal Register Volume 83, Number 162 (Tuesday, August 21, 2018)]
[Notices]
[Pages 42307-42308]
[FR Doc No: 2018-17961]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2017-D-5297]

Microdose Radiopharmaceutical Diagnostic Drugs: Nonclinical Study
Recommendations; Guidance for Industry; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice of availability.

-----------------------------------------------------------------------

SUMMARY: The Food and Drug Administration (FDA or Agency) is announcing
the availability of a final guidance for industry entitled ``Microdose
Radiopharmaceutical Diagnostic Drugs: Nonclinical Study
Recommendations.'' This guidance is intended to assist sponsors of
microdose radiopharmaceutical diagnostic drugs on the nonclinical
studies recommended to support human clinical trials and marketing
applications. This guidance finalizes the draft guidance of the same
name issued on September 13, 2017.

DATES: The announcement of the guidance is published in the Federal
Register on August 21, 2018.

ADDRESSES: You may submit either electronic or written comments on
Agency guidances at any time as follows:

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. Comments submitted
electronically, including attachments, to https://www.regulations.gov
will be posted to the docket unchanged. Because your comment will be
made public, you are solely responsible for ensuring that your comment
does not include any confidential information that you or a third party
may not wish to be posted, such as medical information, your or anyone
else's Social Security number, or confidential business information,
such as a manufacturing process. Please note that if you include your
name, contact information, or other information that identifies you in
the body of your comments, that information will be posted on https://www.regulations.gov.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand delivery/Courier (for written/paper
submissions): Dockets Management Staff (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Dockets
Management Staff, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-2017-D-5297 for ``Microdose Radiopharmaceutical Diagnostic Drugs:
Nonclinical Study Recommendations; Guidance for Industry;
Availability.'' Received comments will be placed in the docket and,
except for those submitted as ``Confidential Submissions,'' publicly
viewable at https://www.regulations.gov or at the Dockets Management
Staff between 9 a.m. and 4 p.m., Monday through Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on https://www.regulations.gov.
Submit both copies to the Dockets Management Staff. If you do not wish
your name and contact information to be made publicly available, you
can provide this information on the cover sheet and not in the body of
your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-23389.pdf.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to https://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.
    You may submit comments on any guidance at any time (see 21 CFR
10.115(g)(5)).
    Submit written requests for single copies of this guidance to the
Division of Drug Information, Center for Drug Evaluation and Research,
Food and Drug Administration, 10001 New Hampshire Ave., Hillandale
Building, 4th Floor, Silver Spring, MD 20993-0002. Send one self-
addressed adhesive label to assist that office in processing your
requests. See the SUPPLEMENTARY

INFORMATION section for electronic access to the guidance document.

FOR FURTHER INFORMATION CONTACT: Adebayo Laniyonu, Center for Drug
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 22, Rm. 5400, Silver Spring, MD 20993-0002, 301-
796-1392.

SUPPLEMENTARY INFORMATION:

I. Background

    FDA is announcing the availability of a guidance for industry
entitled ``Microdose Radiopharmaceutical Diagnostic Drugs: Nonclinical
Study Recommendations.'' This guidance is intended to assist sponsors
of microdose radiopharmaceutical diagnostic drugs on the nonclinical
studies recommended to support human clinical trials and marketing
applications. This guidance incorporates comments received and
finalizes the draft guidance of the same name issued on September 13,
2017 (82 FR 43025). The guidance includes a few editorial changes and a
new sentence clarifying the definition of the term diagnostic
radiopharmaceutical.
    This guidance is being issued consistent with FDA's good guidance
practices regulation (21 CFR 10.115). The guidance represents the
current thinking of FDA on nonclinical study recommendations for
microdose radiopharmaceutical diagnostic drugs. It does not establish
any rights for any person and is not binding on FDA or the public. You
can use an alternative approach if it satisfies the requirements of the
applicable statutes and regulations. This guidance is not subject to
Executive Order 12866.

II. Paperwork Reduction Act of 1995

    This guidance refers to previously approved collections of
information that are subject to review by the Office of Management and
Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520). The collections of information in 21 CFR parts 312 and 314 have
been approved under OMB control numbers 0910-0014 and 0910-0001,
respectively. The collection of information for radioactive drug
research committees in 21 CFR 361.1 has been approved under OMB control
number 0910-0053. The collection of information for the regulations on
in vivo radiopharmaceuticals used for diagnosis and monitoring in 21
CFR 315.4, 315.5, and 315.6 has been approved under OMB control number
0910-0409.

III. Electronic Access

    Persons with access to the internet may obtain the guidance at
either https://www.fda.gov/Drugs/GuidanceComplianceRegulatoryInformation/Guidances/default.htm or
https://www.regulations.gov.

    Dated: August 15, 2018.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2018-17961 Filed 8-20-18; 8:45 am]
BILLING CODE 4164-01-P