[Federal Register: December 13, 2007 (Volume 72, Number 239)]
[Rules and Regulations]
[Page 70769-70771]
[DOCID:fr13de07-5]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2007-0153; Airspace Docket No. 07-AEA-12]

Establishment of Class E Airspace; Honesdale, PA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Direct final rule, request for comments.

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SUMMARY: This action establishes additional Class E Airspace at
Honesdale, PA. The existing controlled airspace does not adequately
support a new Area Navigation (RNAV) Global Positioning System (GPS)
Special Instrument Approach Procedure (IAP) that has been developed for
medical flight operations. This action will enhance the safety and
management of Instrument Flight Rule (IFR) operations by providing the
required controlled airspace to protect for this approach around
Honesdale, PA.

DATES: Effective 0901 UTC, February 14, 2008. The Director of the
Federal Register approves this incorporation by reference action under
title 1, Code of Federal Regulations, part 51, subject to the annual
revision of FAA Order 7400.9 and publication of conforming amendments.
Comments for inclusion in the Rules Docket must be received on or
before January 10, 2008.

ADDRESSES: Send comments on this rule to: Docket Management Facility,
U.S. Department of Transportation, 1200 New Jersey, SE., West Building,
Ground Floor, Room W12-140, Washington, DC 20590-0001; Telephone: 1-
800-647-5527; Fax:<PHONE_NUMBER>. You must identify the Docket Number
FAA-2007-0153; Airspace Docket No. 07-AEA-12, at the beginning of your
comments. You may also submit and review received comments through the
Internet at http://www.regulations.gov.

    You may review the public docket containing the rule, any comments
received, and any final disposition in person in the Dockets Office
(see ADDRESSES section for address and phone number) between 9 a.m. and
5 p.m., Monday through Friday, except Federal Holidays. An informal
docket may also be examined during normal business hours at the office
of the Eastern Service Center, Federal Aviation Administration, Room
210, 1701 Columbia Avenue, College Park, Georgia 30337.

FOR FURTHER INFORMATION CONTACT: Daryl Daniels, System Support Group,
Eastern Service Center, Federal Aviation Administration, P.O. Box
20636, Atlanta, Georgia 30320; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

The Direct Final Rule Procedure

    The FAA anticipates that this regulation will not result in adverse
or negative comments, and, therefore, issues it as a direct final rule.
The FAA has determined that this rule only involves and established
body of technical regulations for which frequent and routine amendments
are necessary to keep them operationally current. Unless a written
adverse or negative comment or a written notice of intent to submit an
adverse or negative comment is received within the comment period, the
regulation will become effective on the date specified above. After the
close of the comment period, the FAA will publish a document in the
Federal Register indicating that no adverse or negative comments were
received and confirming the effective date. If the FAA receives, within
the comment period, an adverse or negative comment, or written notice
of intent to submit such a comment, a document withdrawing the direct
final rule will be published in the Federal Register, and a notice of
proposed rulemaking may be published with a new comment period.

Comments Invited

    Although this action is in the form of a direct final rule, and was
not preceded by a notice of proposed rulemaking, interested persons are
invited to comment on this rule by submitting such written data, views,
or arguments as they may desire. An electronic copy of this document
may be downloaded from http://www.regulations.gov. Communications

should identify both docket numbers and be submitted in triplicate to
the address specified under the caption ADDRESSES above or through the
Web site. All communications received on or before the closing date for
comments will be considered, and this rule may be amended or withdrawn
in light of the comments received.
    Comments are specifically invited on the overall regulatory,
economic, environmental, and energy aspects of the rule that might
suggest a need to modify the rule. Factual information that supports
the commenter's ideas and suggestions is extremely helpful in
evaluating the effectiveness of this action and determining whether
additional rulemaking action would be needed. All comments submitted
will be available, both before and after the closing date for comments,
in the Rules Docket for examination by interested persons. Those
wishing the FAA to acknowledge receipt of their comments submitted in
response to this rule must submit a self-addressed, stamped postcard on
which the following statement is made: ``Comments to Docket No. FAA-
2007-0153; Airspace Docket No. 07-AEA-12'' The postcard will be date
stamped and returned to the commenter.

The Rule

    This amendment to Title 14, Code of Federal Regulations (14 CFR)--
part 71 establishes Class E airspace at Honesdale, PA providing the
controlled airspace required to support the new Copter RNAV (GPS) 250
Point in Space (PinS) approach developed for the Honesdale Sports
Complex Heliport. Although Class E airspace exists in the area, it is
insufficient for this approach which will serve medical flights.
Controlled airspace extending upward from 700 feet Above Ground Level
(AGL) is required to encompass all IAPs and for IFR operations,
therefore, the FAA is amending Title 14, Code of Federal Regulations
(14 CFR--part 71 to amend the Class E5 airspace at Honesdale, PA.
Designations for Class E airspace areas extending upward from 700 feet
or more above the surface of the Earth are published in FAA Order
7400.9R, signed August 15, 2007 effective September 15, 2007, which is
incorporated by reference in 14 CFR part 71.1. The Class E designations
listed in this document will be published subsequently in the Order.

Agency Findings

    The regulations adopted herein will not have substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among various levels of government. Therefore, it is
determined that this final rule does not have federalism implications
under Executive Order 13132.
    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current, is
non-controversial and unlikely to result in adverse or negative
comments. It, therefore, (1) is not a ``significant regulatory action''
under Executive Order 12866; (2) is not a ``significant rule'' under
DOT Regulatory Policies and Procedures (44 FR 11034; February 26,
1979); and (3) does not warrant preparation of a Regulatory Evaluation
as the anticipated impact is so minimal. Since this is a routine matter
that will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, will not have a significant
economic impact on a substantial number of small entities under the
criteria of the Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. 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.
    This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the
FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it establishes and amends controlled airspace near the Honesdale
Sports Complex Heliport in Honesdale, PA.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (Air).

Adoption of the Amendment

0
In consideration of the foregoing, the Federal Aviation Administration
amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation
Administration Order 7400.9R, Airspace Designations and Reporting
Points, signed August 15, 2007, effective September 15, 2007, is
amended as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

AEA PA E5 Honesdale, PA [REVISED]

Cherry Ridge Airport, Honesdale, PA
    (Lat. 41[deg]30'55'' N., long 75[deg]15'05'' W.)
Spring Hill Airport, Sterling, PA
    (Lat. 41[deg]20'50'' N., long. 75[deg]24'57'' W.)
Wilkes-Barre VORTAC
    (Lat. 41[deg]16'22'' N., long. 75[deg]41'22'' W.)
Honesdale Sports Complex Heliport (Point in Space Coordinates)
    (Lat. 41[deg]34'11'' N., long. 75[deg]14'49'' W.)

    That airspace extending upward from 700 feet above the surface
within a 6.3-mile radius of Cherry Ridge Airport and within 4.4
miles each side of the Wilkes-Barre VORTAC 054[deg] radial extending
from the 6.3-mile radius to 8.7 miles northeast of the VORTAC, that
airspace within a 6-mile radius of Spring Hill Airport and that
airspace within a 6-mile radius of the point in space coordinates
serving the Honesdale Sports Complex Heliport.
* * * * *

    Issued in College Park, Georgia, on November 15, 2007.
Barry A. Knight,
Acting Manager, System Support Group, Eastern Service Center.
[FR Doc. 07-6017 Filed 12-12-07; 8:45 am]

BILLING CODE 4910-13-M


[Federal Register Volume 86, Number 32 (Friday, February 19, 2021)]
[Notices]
[Pages 10372-10375]
[FR Doc No: 2021-03353]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91128]

Order Extending the Annual Reports Filing Deadline for Certain
Smaller Broker-Dealers

February 12, 2021.

I. Introduction

    Broker-dealers registered with the U.S. Securities and Exchange
Commission (``SEC'' or ``Commission'') are generally required to file
with the Commission, within 60 calendar days after the end of the
fiscal year of the broker-dealer, a financial report and either a
compliance report or exemption report, along with reports prepared by
an independent public accountant \1\ covering the financial report and,
as applicable, the compliance or exemption report (collectively the
``annual reports'').\2\ Pursuant to paragraph (m)(3) of Exchange Act
Rule 17a-5 (``Rule 17a-5''), the Financial Industry Regulatory
Authority, Inc. (``FINRA'') has requested that the Commission extend by
30 calendar days the deadline for certain smaller broker-dealers to
file the annual reports.\3\ This order grants such an extension to
certain smaller broker-dealers, subject to the conditions described in
section III below.
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    \1\ The independent public accountant must be qualified and
independent in accordance with Rule 2-01 of Regulation S-X and must
be registered with the Public Company Accounting Oversight Board
(``PCAOB'') if required by the Sarbanes-Oxley Act of 2002
(``Sarbanes-Oxley Act''). See Public Law 107-204, 116 Stat. 745
(2002); 17 CFR 240.17a-5(f)(1).
    \2\ See 17 CFR 240.17a-5(d)(5).
    \3\ See 17 CFR 240.17a-5(m)(3) (stating that on written request
of any national securities exchange, registered national securities
association, broker-dealer, or on its own motion, the Commission may
grant an extension of time or an exemption from any of the
requirements of Rule 17a-5 either unconditionally or on specified
terms and conditions).
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II. Discussion

A. FINRA's Request

    In a letter dated February 11, 2021, FINRA requested that the
Commission issue an order pursuant to paragraph (m)(3) of Rule 17a-5 to
extend by 30 calendar days the deadline for certain smaller broker-
dealers to file their annual reports.\4\ In FINRA's request, it
indicated that it had been informed by smaller broker-dealers and
auditors that permitting an additional 30 days for filing of the annual
reports may help to reduce the burdens in obtaining audit services by
providing an expanded time frame for the completion of such audits
thereby easing the availability of auditors.\5\ FINRA stated in the
letter that the fiscal year for most broker-dealers ends on the last
calendar day of the year (December 31), which results in the greatest
demand for audit services in the 60 calendar days following that date.
Further, much of the work required to complete these audits is
performed after the broker-dealer files the final FOCUS Report (Form X-
17A-5 Part II or IIA) for the audit year, which is due to be filed with
the Commission 17 business days after the end of the prior month (i.e.,
January 27 for broker-dealers with December 31 fiscal year ends). As a
result, the required audit work is conducted within a compressed period
when audit services are in greatest demand and the availability of
independent public accountants and

other third-party professionals may be limited.
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    \4\ See Letter from Kris Dailey, Vice President, Office of
Financial and Operational Risk Policy, FINRA to Michael A.
Macchiaroli, Associate Director, SEC (February 11, 2021).
    \5\ See id. at 2.
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    FINRA further identified a number of factors that compound the
burden of smaller broker-dealers in preparing the annual reports and
undergoing an audit of them. For example, the auditors of smaller
broker-dealers typically do not perform interim audit work prior to the
fiscal year end. Interim audit work typically includes the auditors
testing items such as revenue, expenses, and internal controls. In
addition, some smaller broker-dealers utilize outside professional and
consulting services to assist them in preparing supporting materials
for the audit and to respond to auditor requests. These outside
professional and consulting service providers often have multiple
smaller broker-dealer clients with the same fiscal year end. As a
result, the service providers' may have a limited capacity during the
audit period to provide their services to smaller broker-dealers.
Furthermore, because many smaller broker-dealers do not have fully
automated financial and operational recordkeeping and reporting
infrastructures, they must rely on manual processes to prepare
documents for the independent public accountant to audit or review,
which can take additional time as compared to more automated processes.
    FINRA also stated that some audit firms have chosen to forego
registration with the PCAOB, resulting in fewer independent public
accountants qualified under Rule 17a-5 to perform broker-dealer
audits.\6\ FINRA indicates that the additional 30 days to complete a
smaller broker-dealer audit may alleviate capacity issues for PCAOB-
registered auditors. FINRA stated that it has been informed by broker-
dealers and auditors that the additional 30 days would help the limited
number of PCAOB-registered auditors to perform the work necessary to
complete reports covering them. FINRA stated the additional time could
promote better quality of the annual reports.
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    \6\ In its 2012 Annual Report on the Interim Inspection Program
Related to the Audits of Brokers and Dealers (``Annual Inspection
Report''), the PCAOB reported that there were 783 registered public
accounting firms. In the 2019 Annual Inspection Report, that figure
had declined to 411. See PCAOB, Information for Auditors of Broker-
Dealers, available at https://pcaobus.org/Pages/BrokerDealers.aspx.
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B. FINRA's Proposed Conditions for the Requested Relief

    FINRA proposed that the extension of 30 calendar days be made
available only to broker-dealers that meet certain conditions. The
first condition is that the broker-dealer must be in compliance with
Exchange Act Rule 15c3-1 \7\ (``Rule 15c3-1'') as of the date of its
most recent fiscal year end. FINRA believes this condition is
appropriate because the financial condition of a member that avails
itself of the additional 30 days should not be such as to raise
concerns about whether the member may continue to conduct its broker-
dealer activities. The second condition is that as of the date of the
broker-dealer's most recent fiscal year-end, the broker-dealer must
have had total capital and allowable subordinated liabilities of less
than $50 million, as reported in box 3530 of Part II or IIA of its
FOCUS Report. FINRA believes this condition is appropriate because it
helps to target the contemplated extension to the smaller firms that
are in need of such relief. The third condition is that the extension
be made available only to those broker-dealers eligible to file an
exemption report as part of its most recent fiscal year end annual
reports.\8\ FINRA believes this condition is appropriate so as to
ensure that the extension is only available to firms that, by virtue of
their business activities, generally pose less risk to customers
because they do not custody funds and securities. The fourth condition
is that the broker-dealer submits written notification to FINRA of its
intent to avail itself of the additional 30 calendar days for filing
its annual reports on an ongoing basis for as long as it meets these
conditions. FINRA believes that the notification is appropriate so as
to enable FINRA to monitor effectively firms that avail themselves of
the additional 30 days. The final condition is that the broker-dealer
submits the annual reports electronically to the Commission using an
appropriate process. FINRA believes this condition is appropriate
because it permits greater efficiency and is consistent with SEC staff
guidance.
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    \7\ See 17 CFR 240.15c3-1.
    \8\ See 17 CFR 240.17a-5(d)(1)(i)(B) (prescribing whether a
broker-dealer must file the compliance report or the exemption
report). A broker-dealer must file an exemption report if the firm
claimed it was exempt from Rule 15c3-3 (17 CFR 240.15c3-3)
throughout the most recent fiscal year and was not subject to
paragraph (p) of Rule 15c3-3 (which addresses segregation
requirements with respect to security-based swaps). Otherwise, the
broker-dealer must file the compliance report. See also Broker-
Dealer Reports, Exchange Act Release No. 70073 (July 30, 2013), 78
FR 51910, 51915 (Aug. 21, 2013) n. 74 (stating that a broker-dealer
should file an exemption report if it has not held customer
securities or funds during the fiscal year even if it does not fit
into one of the exemption provisions of Rule 15c3-3 identified on
the FOCUS Report).
    See also Frequently Asked Questions Concerning the July 30, 2013
Amendments to the Broker-Dealer Financial Reporting Rule (updated
July 1, 2020) (describing the Division and Trading and Markets
staff's views regarding the eligibility of certain broker-dealers to
file exemption reports in accordance with the circumstances
described in footnote 74 of the 2013 Broker-Dealer Reports release,
among other things). Staff statements, including Frequently Asked
Questions, represent the views of the staff. They are not rules,
regulations, or statements of the Commission. The Commission has
neither approved nor disapproved their content. These staff
statements, like all staff guidance, have no legal force or effect:
They do not alter or amend applicable law, and they create no new or
additional obligations for any person.
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C. Commission Analysis

    According to FINRA, a smaller broker-dealer's window of time to
prepare the annual reports and undergo an audit by an independent
public accountant is often particularly compressed because much of the
audit work does not commence until after the broker-dealer files its
fiscal year-end FOCUS Report. According to FINRA, audit work for small
broker-dealers is performed predominantly during the period of time
between the due date for the fiscal year-end FOCUS Report (17 business
days after the firm's fiscal year end) and the annual reports filing
due date (60 calendar days after the fiscal year end). Further,
according to FINRA, the auditors of smaller broker-dealers do not
typically perform interim audit work prior to the broker-dealer's
fiscal year end, unlike most larger broker-dealers. The lack of this
interim audit work, which typically includes the testing of items such
as revenue, expenses, and internal controls, compresses the time
auditors have to perform required procedures in advance of the filing
deadline. This also restricts the time frame for smaller broker-dealers
and their auditors to identify and resolve issues.
    Moreover, according to FINRA, many smaller broker-dealers use
manual processes to prepare supporting documentation for the audit or
review and respond to auditor inquiries, rather than the more automated
processes typically used by larger broker-dealers. This can make the
work necessary to prepare the annual reports and audit them more labor
intensive and time consuming. In addition, according to FINRA, some
smaller broker-dealers retain third-party professionals to assist them
with their financial reporting. These professionals often provide
services to multiple smaller broker-dealers with the same fiscal year
end, resulting in these professionals having limited capacity during
the relatively brief period between the FOCUS Report filing due date
and the annual reports filing due date. These professionals' limited
capacity can further compress the timeframe for performing the work
necessary to prepare the annual reports.

    Paragraph (m)(3) of Rule 17a-5 provides that the Commission may
grant an extension of time for broker-dealers to file their annual
reports. After considering the points raised in FINRA's letter and the
burdens faced by smaller broker-dealers in preparing and filing the
annual reports, the Commission believes that it would be appropriate to
extend the deadline for certain smaller broker-dealers to file their
annual reports by 30 calendar days.\9\ This additional time should
expand the timeframe (from slightly more than one month) between the
deadline for submitting the fiscal year-end FOCUS Report and the
deadline to file the annual reports (i.e., the timeframe in which much
of the work is performed to prepare the annual reports). To the extent
auditors are able to better focus on the audit and review of annual
reports for the small broker-dealer clients who avail themselves of the
extension, this relief could help promote quality financial reporting.
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    \9\ FINRA requested relief on behalf of its member broker-
dealers. This Order extends relief to all broker-dealers satisfying
its conditions in order to treat similarly situated broker-dealers
equally regardless of whether they are FINRA members.
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    The Commission further believes it is appropriate to limit this
relief to broker-dealers meeting the conditions described in FINRA's
request, which should also maintain investor protections. Conditioning
the extension on the broker-dealer being in compliance with the net
capital requirements of Rule 15c3-1 as of the date of its fiscal year
end is appropriate because a broker-dealer that is not in compliance
with the rule poses a heightened risk to its customers and other
securities market participants because of its financial condition.
Excluding a net capital-deficient broker-dealer from this relief will
assist the Commission and the broker-dealer's designated examining
authority to monitor the financial condition of the firm on a timely
basis, including analyzing whether the firm will be able to continue as
a going concern. Therefore, a broker-dealer with a net capital
deficiency will not be able to avail itself of the additional 30 days
provided for in this Order.
    The Commission also believes it is appropriate to limit the
availability of the extension to smaller broker-dealers. As discussed
above, the extension could alleviate unique burdens associated with the
compressed timeframe for smaller broker-dealers to prepare their annual
reports and their independent public accountants to perform the audit
work necessary to prepare reports covering them. Moreover, broker-
dealers that conduct a substantial securities business and thus are in
a position to potentially pose significant risk to investors and to the
fair, orderly, and efficient functioning of the markets, will not be
eligible for the extension. Therefore, the Commission is limiting the
relief to broker-dealers that have total capital and allowable
subordinated liabilities of less than $50 million, as requested by
FINRA. Broker-dealers falling below the $50 million threshold
constitute approximately 3% of the total capital of all broker-dealers.
The Commission believes that the $50 million threshold is appropriate
in this context because smaller broker-dealers pose less significant
risks to the fair, orderly, and efficient functioning of the markets.
    Broker-dealers that maintain custody of customer securities and
cash are not eligible to file exemption reports and are generally
larger in size than broker-dealers that do not carry customer accounts.
The Commission believes firms that file an exemption report--because of
their relative size and the fact that they do not hold customer funds
or securities, or owe money or securities to customers and do not carry
customer accounts, or are exempt from Rule 15c3-3 pursuant to paragraph
(k)(2) of that rule--present less risk to customers. Therefore, a
broker-dealer must be permitted to file an exemption report as part of
the annual reports to qualify for the relief. Based upon information
included in broker-dealers' FOCUS Reports, the Commission believes that
approximately 3,000 of the 3,620 broker-dealers registered with the
Commission would meet the $50 million threshold and exemption report
filing conditions.
    The Commission believes that it is appropriate to make the 30-day
extension available only to broker-dealers that have provided written
notice to their designated examining authority of their intent to avail
themselves of the extension. The designated examining authority is
responsible for oversight of broker-dealers' adherence to the financial
responsibility rules, including Rule 17a-5. This requirement will allow
the broker-dealer's designated examining authority to more effectively
monitor firms by enabling it to distinguish between broker-dealers that
are filing their annual reports late as opposed to firms availing
themselves of the relief in this Order.
    Finally, the Commission believes it is appropriate to limit the
availability of the relief in this order to broker-dealers that file
the annual reports electronically with the Commission using an
appropriate process.\10\ The electronic filing condition promotes
efficiency by ensuring broker-dealers that rely on the 30-day extension
will have their annual reports made available to Commission staff and
to the public more quickly than if they had been filed in paper within
the deadline provided in Rule 17a-5. Paper filings must be manually
processed, which is time consuming and delays the availability of
annual reports to the staff of the Commission and to the public. By
comparison, annual reports that are filed electronically need minimal
or no manual processing. Therefore, to help ensure the annual reports
are made promptly available, the Commission is conditioning the relief
on electronic filing.
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    \10\ The Commission notes that the staff of the Division of
Trading and Markets has previously issued no-action positions
related to the electronic filing of broker-dealer annual reports.
See Letter to Kris Daily, Vice President, FINRA from Michael A.
Macchiaroli, Associate Director, Commission, dated January 27, 2017.
Available at https://www.sec.gov/divisions/marketreg/mr-noaction/2017/finra-012717-electronic-filing-annual-reports.pdf. For further
instructions relating to filing broker-dealer annual reports through
EDGAR, see Electronic Filing of Broker-Dealer Annual Reports.
Available at https://www.sec.gov/divisions/marketreg/electronic-filing-broker-dealer-annual-reports.htm.
    See also Updated Division of Trading and Markets Staff Statement
Regarding Requirements for Certain Paper Submissions in Light of
COVID-19 Concerns. Available at https://www.sec.gov/tm/paper-submission-requirements-covid-19-updates-061820.
    Staff statements represent the views of the staff. They are not
rules, regulations, or statements of the Commission. The Commission
has neither approved nor disapproved their content. These staff
statements, like all staff guidance, have no legal force or effect:
They do not alter or amend applicable law, and they create no new or
additional obligations for any person.
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III. Conclusion

    It is hereby ordered pursuant to section 17(a)(1) of the Exchange
Act and paragraph (m)(3) of Rule 17a-5 thereunder that the deadline in
paragraph (d)(5) of Rule 17a-5 for filing the annual reports is
extended by 30 calendar days, provided that the broker-dealer:
    (1) As of its most recent fiscal year end:
    a. Was in compliance with Rule 15c3-1; and
    b. Had total capital and allowable subordinated liabilities of less
than $50 million, as reported in box 3530 of Part II or Part IIA of its
FOCUS Report;
    (2) Is permitted to file an exemption report as part of its most
recent fiscal year end annual reports;
    (3) Submits written notification to its designated examining
authority of its intent to rely on this order on an ongoing basis for
as long as it meets the conditions of the order; and

    (4) Files the annual report electronically with the Commission
using an appropriate process.

    By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021-03353 Filed 2-18-21; 8:45 am]
BILLING CODE 8011-01-P