[Federal Register Volume 80, Number 206 (Monday, October 26, 2015)]
[Rules and Regulations]
[Pages 65137-65138]
[FR Doc No: 2015-27131]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[USCG-2015-0964]

Drawbridge Operation Regulations; Tchefuncta River, Madisonville,
LA

AGENCY: Coast Guard, DHS.

ACTION: Notice of deviation from regulations.

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SUMMARY: The Coast Guard has issued a temporary deviation from the
operating schedule that governs the SR 22 Bridge over the Tchefuncta
River, mile 2.5, at Madisonville, St. Tammany Parish, Louisiana. This
deviation is necessary to complete scheduled maintenance of the bridge.
This deviation allows the bridge to remain closed to navigation for
approximately six weeks while allowing for two scheduled openings on
scheduled work days except for a five-day period and a 36-hour period,
both in December, when there will be complete closures. The bridge will
operate normally on non-scheduled work days and on weekends.

DATES: This deviation is effective from 7 a.m. on November 2, 2015
until 7 p.m. on December 15, 2015.

ADDRESSES: The docket for this deviation, [USCG-2015-0964] is available
at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary deviation, call or email Jim Wetherington, D8 Bridge
Administration Branch, Coast Guard; telephone<PHONE_NUMBER>, email
<EMAIL_ADDRESS>

SUPPLEMENTARY INFORMATION: Coastal Bridge Company, LLC, on behalf of
Louisiana Department of Transportation and Development (LDOTD),
requested a deviation from the operating regulation for the SR 22
Bridge across the Tchefuncta River, mile 2.5, at Madisonville, St.
Tammany Parish, Louisiana. The SR 22 Bridge is a swing bridge with a
vertical clearance of 6.2 feet above Mean High Water (MHW) in the
closed-to-navigation position and unlimited clearance in the open-to-
navigation position. The operation of this bridge is currently governed
by 33 CFR 117.500.
    The closure is necessary for mechanical and electrical
rehabilitation of the bridge. The deviation from the operating
regulations will be in effect from Monday, November 2, 2015 until
Tuesday, December 15, 2015, except for weekends. Within this time frame
there will be multiple closure periods, deviating from the regular
operating schedule, as follows:
    (1) The first closure period will be from 7 a.m. on November 9th,
until 7 p.m. on November 13th, 2015, except that the bridge will open
at 9 a.m. and 7 p.m., daily, to pass all vessel traffic;
    (2) The second closure period will be from 7 a.m. on November 16th
until 9 p.m. on November 17th except that the bridge will open at 9
a.m. and 7 p.m., daily, to pass all vessel traffic;
    (3) The third closure period will be from 7 a.m. on November 23rd
until 9 p.m. on November 24th except that the bridge will open at 9
a.m. and 7 p.m., daily, to pass all vessel traffic;
    (4) The fourth closure period will be a total closure from 7 a.m.
on November 30th until 7 p.m. on December 4th; there will be no
openings during this period;
    (5) The fifth and final closure period will be a total closure from
9 a.m. on December 14th until 7 p.m. on December 15th; there will be no
openings during this period. All work is expected to be completed by 7
p.m. on Tuesday, December 15, 2015.
    Any changes to the scheduled closure times will be announced
through the Local Notice to Mariners or through a broadcast. The
traffic on the Tchefuncta River is primarily recreational with minimal
commercial traffic. The contractor approached each marina and business
that could possibly be impacted and forwarded them a copy of the work
schedule. No negative comments were noted.
    Vessels able to pass through the bridge in the closed-to-navigation
position may do so at anytime. The bridge will not be able to open for
emergencies and there is no immediate alternate route for vessels to
pass. The Coast Guard will also inform the users of the waterways
through our Local and Broadcast Notices to Mariners of the change in
operating schedule for the bridge so that vessels can arrange their
transits to minimize any impact caused by the temporary deviation.
    In accordance with 33 CFR 117.35(e), the drawbridge must return to
its regular operating schedule immediately at the end of the designated
time periods. This deviation from the operating regulations is
authorized under 33 CFR 117.35.

    Dated: October 20, 2015.
David M. Frank,
Bridge Administrator, Eighth Coast Guard District.
[FR Doc. 2015-27131 Filed 10-23-15; 8:45 am]
 BILLING CODE 9110-04-P


[Federal Register Volume 85, Number 185 (Wednesday, September 23, 2020)]
[Notices]
[Pages 59783-59784]
[FR Doc No: 2020-20983]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2444-036]

Northern States Power Company--Wisconsin; Notice of Intent to
File License Application, Filing of Pre-Application Document, Approving
Use of the Traditional Licensing Process

    a. Type of Filing: Notice of Intent to File License Application and
Request to Use the Traditional Licensing Process.
    b. Project No.: 2444-036.
    c. Date Filed: July 29, 2020.
    d. Submitted By: Northern States Power Company--Wisconsin (Northern
States)
    e. Name of Project: White River Hydroelectric Project.

    f. Location: On the White River, in Ashland County, Wisconsin. No
federal lands are occupied by the project works or located within the
project boundary.
    g. Filed Pursuant to: 18 CFR 5.3 of the Commission's regulations.
    h. Potential Applicant Contact: Matthew J. Miller, Northern States
Power Company--Wisconsin, 1414 W. Hamilton Ave., P.O. Box 8, Eau
Claire, WI 54702; [email protected]; phone at
(715) 737-1353; or Shawn Puzen, Mead & Hunt, Inc., 1720 Lawrence Drive,
De Pere, Wisconsin 54115-3901; email<EMAIL_ADDRESS>phone at
920-593-6865.
    i. FERC Contact: Paul Makowski at<PHONE_NUMBER>; or email at
<EMAIL_ADDRESS>    j. Northern States filed its request to use the Traditional
Licensing Process on July 29, 2020, and provided public notice of its
request on the same date. In a letter dated September 16, 2020, the
Director of the Division of Hydropower Licensing approved Northern
States' request to use the Traditional Licensing Process.
    k. With this notice, we are initiating informal consultation with
the U.S. Fish and Wildlife Service and/or NOAA Fisheries under section
7 of the Endangered Species Act and the joint agency regulations
thereunder at 50 CFR, Part 402; and NOAA Fisheries under section 305(b)
of the Magnuson-Stevens Fishery Conservation and Management Act and
implementing regulations at 50 CFR 600.920. We are also initiating
consultation with the Wisconsin State Historic Preservation Officer, as
required by section 106, National Historic Preservation Act, and the
implementing regulations of the Advisory Council on Historic
Preservation at 36 CFR 800.2.
    l. With this notice, we are designating Northern States as the
Commission's non-federal representative for carrying out informal
consultation pursuant to section 7 of the Endangered Species Act; and
consultation pursuant to section 106 of the National Historic
Preservation Act.
    m. Northern States filed a Pre-Application Document (PAD);
including a proposed process plan and schedule with the Commission,
pursuant to 18 CFR 5.6 of the Commission's regulations.
    n. A copy of the PAD may be viewed and/or printed on the
Commission's website (http://www.ferc.gov), using the ``eLibrary''
link. Enter the docket number, excluding the last three digits in the
docket number field to access the document. The PAD is also available
on the applicant's project website at http://hydrorelicensing.com. At
this time, the Commission has suspended access to the Commission's
Public Reference Room, due to the proclamation declaring a National
Emergency concerning the Novel Coronavirus Disease (COVID-19), issued
by the President on March 13, 2020. For assistance, contact FERC Online
Support at<EMAIL_ADDRESS>(866) 208-3676 (toll free), or
(202) 502-8659 (TTY).
    o. The licensee states its unequivocal intent to submit an
application for a subsequent license for Project No. 2444. Pursuant to
18 CFR 16.20, each application for a subsequent license and any
competing license applications must be filed with the Commission at
least 24 months prior to the expiration of the existing license. All
applications for license for this project must be filed by July 31,
2023.
    p. Register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filing and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.

    Dated: September 16, 2020.
Kimberly D. Bose,
Secretary.
[FR Doc. 2020-20983 Filed 9-22-20; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 123 (Tuesday, June 26, 2018)]
[Notices]
[Pages 29855-29861]
[FR Doc No: 2018-13619]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83483; File No. SR-MSRB-2018-04]

Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change To, Among Other Things, Amend MSRB Rule G-3 To Restructure the
MSRB's Current Municipal Securities Representative Qualification
Examination and Harmonize Certain MSRB Qualification Requirements With
FINRA Rules

June 20, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\
notice is hereby given that on June 8, 2018 the Municipal Securities
Rulemaking Board (the ``MSRB'' or ``Board'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
by the MSRB. 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

    The MSRB filed with the Commission a proposed rule change to amend
MSRB Rule G-3, on professional qualification requirements, to (i)
restructure the MSRB's current Municipal Securities Representative
Qualification Examination (``Series 52''); (ii) harmonize certain MSRB
qualification requirements with the Financial Industry Regulatory
Authority's (``FINRA'') rule change to make modifications to its
representative-level qualification program, consolidate NASD and
Incorporated NYSE registration and qualification rules, and amend its
continuing education (``CE'') requirements (hereinafter ``FINRA's
consolidated rule change''); \3\ and (iii) make technical changes to
Rule G-3 (collectively the ``proposed rule change''). The MSRB has
filed the proposed rule change for immediate effectiveness pursuant to
Section 19(b)(3)(A) of the Act \4\ and Rule 19b-4(f)(6) \5\ thereunder.
The MSRB proposes an operative date of October 1, 2018, to coincide
with the effective date of FINRA's consolidated rule change.
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    \3\ On July 7, 2017, the SEC approved FINRA's consolidated rule
change to: (1) restructure FINRA's representative-level
qualification examination program; (2) adopt amendments to
consolidate NASD and Incorporated NYSE rules as FINRA's consolidated
qualification and registration rules; and (3) amend FINRA's CE
requirements. See Exchange Act Release No. 81098 (July 7, 2017), 82
FR 32419 (July 13, 2017) (SR-FINRA-2017-007).
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6).
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    The text of the proposed rule change is available on the MSRB's
website at www.msrb.org/Rules-and-Interpretations/SEC-Filings/2018-Filings.aspx, at the MSRB's principal office, 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, the MSRB included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The MSRB has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.

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

1. Purpose
    MSRB The MSRB is charged with setting professional qualification
standards for brokers, dealers, and municipal securities dealers
(``dealers''), and municipal advisors. Specifically, Section
15B(b)(2)(A) of the Act authorizes the MSRB to prescribe ``standards of
training, experience, competence, and such other qualifications as the
Board finds necessary or appropriate in the public interest or for the
protection of investors and municipal entities or obligated persons.''
\6\ Section 15B(b)(2)(A)(iii) of the Act also provides that the Board
may appropriately classify associated persons of dealers and municipal
advisors and require persons in any such class to pass tests prescribed
by the Board.\7\ Accordingly, over the years, the MSRB has adopted
professional qualification standards to ensure that associated persons
of dealers and municipal advisors attain and maintain specified levels
of competence and knowledge for each classification category. The
purpose of the proposed rule change is to generally harmonize Rule G-3
with approved amendments to

FINRA's professional qualification and registration rules in
furtherance of promoting regulatory consistency with respect to
qualification requirements. To that end, the MSRB is proposing to (i)
require the Securities Industry Essentials (SIE) examination as a
prerequisite for the Series 52 examination; (ii) restructure the Series
52 examination into a specialized knowledge examination; (iii) amend
Rule G-3 to further harmonize with FINRA's consolidated rule change by
providing for permissive registrations and relief to individuals from
having to requalify by examination by recognizing the financial
services affiliate (``FSA'') waiver program; and (iv) make other
amendments that are technical in nature.
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    \6\ See 15 U.S.C. 78o-4(b)(2)(A).
    \7\ See 15 U.S.C. 78o-4(b)(2)(A)(iii).
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Background
    FINRA's consolidated rule change reflected a multi-year effort to
not only create a consolidated FINRA rulebook, but to create the SIE
and tailored, specialized knowledge examinations for its particular
registration categories, and also to enhance its registration rules to
afford firms greater flexibility to develop and maintain a depth of
registered associated persons with professional qualifications. The
consolidated rule change began, in part, in December 2009, with the
publication of FINRA Regulatory Notice 09-70 \8\ requesting comment on,
among other things: (i) Revising the categories of permissive
registrations to allow any associated person to obtain and maintain any
registration permitted by the member; and (ii) establishing a process
by which a person working for a financial services affiliate of a
member would be permitted to re-associate with a member without having
to meet the necessary qualification requirements.\9\
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    \8\ See Regulatory Notice 09-70 (FINRA Requests Comment on
Proposed Consolidated FINRA Rules Governing Registration and
Qualification Requirements) (December 2009).
    \9\ FINRA received over 20 comments in response to Regulatory
Notice 09-70.
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    In May 2015, in connection with its continued efforts to streamline
its registration and qualification rules, FINRA published Regulatory
Notice 15-20 \10\ seeking comment on a proposal to restructure its
representative-level qualification examination program. The
restructured program consists of the SIE examination paired with
specialized knowledge examinations for specific representative-level
qualifications. The SIE examination is designed to cover fundamental
knowledge that is commonly tested across the representative-level
examinations, such as product knowledge, functions of the regulatory
agencies, and structure of the securities markets. Each specialized
knowledge examination would test knowledge of concepts and rules
specifically corresponding to a particular representative-level
qualification.
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    \10\ See Regulatory Notice 15-20 (FINRA Requests Comment on a
Concept Proposal to Restructure the Representative-Level
Qualification Examination Program) (May 2015). FINRA received over
20 comments in response to Regulatory Notice 15-20.
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    In March 2017, FINRA's consolidated rule change was filed with the
SEC to: (i) Consolidate, with amendments, the NASD and Incorporated
NYSE qualification and registration rules; (ii) restructure FINRA's
representative-level qualification examination program with the
creation of the SIE; and (iii) amend FINRA's CE requirements. All
proposed amendments were subject to notice and comment through FINRA's
previous requests for comments. FINRA's proposed rule change was
published for comment in the Federal Register on April 10, 2017; the
SEC received 18 comments in response to the proposal, which FINRA
responded to on June 26, 2017.\11\ The SEC found that the proposal was
consistent with the requirements of the Exchange Act and the rules and
regulations thereunder and approved FINRA's proposed rule changes.\12\
Thereafter, FINRA announced that its consolidated rule change would
become effective on October 1, 2018 in Regulatory Notice 17-30 (October
2017).
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    \11\ The SEC received another comment letter in response to
FINRA's response to comments. See Letter from Michele Van Tassel,
President, Association of Registration Management, to Afshin
Atabaki, Associate General Counsel, Financial Industry Regulatory
Authority (July 21, 2017).
    \12\ Specifically, the Commission found that the proposed rule
change was consistent with Section 15A(b)(6) of the Exchange Act, 15
U.S.C. 78o-3(b)(6), which requires, among other things, that FINRA
rules 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 and Section
15(A)(g)(3) of the Exchange Act, 15 U.S.C. 78o-3(g)(3), which
authorizes FINRA to prescribe standards of training, experience, and
competence for persons associated with FINRA members.
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    The MSRB conducted a review of its qualifications program to
determine where it was appropriate to harmonize with FINRA's
consolidated rule change. Provided below is a detailed description of
the proposed amendments to Rule G-3.
Description of the Proposed Amendments to Rule G-3--Designed To Promote
Regulatory Consistency With FINRA's Consolidated Rule Change
Permissive Registrations
    FINRA's consolidated rule change expanded the scope of permissive
registrations under NASD Rules 1021 and 1031 to eliminate a constraint
that only certain associated persons of a member could obtain
permissive registrations and to codify such provisions as FINRA Rule
1210.02. Specifically, as approved, FINRA Rule 1210.02 allows any
associated person of a member to obtain and maintain any registration
permitted by the member irrespective of the functional role of the
person at the firm. In addition, FINRA Rule 1210.02 provides that a
person maintaining a permissive registration would be deemed a
registered person of the firm and be assigned an appropriately
registered supervisor who would be responsible for periodically
contacting such individual's direct supervisor to verify that the
individual is not engaging in activities outside the scope of his or
her current role.\13\ The individual would nevertheless be subject to
all FINRA rules to the extent relevant to their activities.\14\
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    \13\ An individual's day-to-day supervisor may be a non-
registered person, however an appropriately registered supervisor
would be responsible for periodic check-ins to make sure that the
individual is not acting outside the scope of his or her assigned
functions.
    \14\ For example, FINRA rules that relate to interactions with
customers would not be applicable to the conduct of a permissively-
registered individual who does not have any customer contact.
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    The MSRB is proposing to amend Rule G-3 to adopt Supplementary
Material .03 that would similarly allow dealers to have any associated
person at a dealer maintain certain MSRB qualifications. More
specifically, any individual associated with a dealer would be allowed,
if permitted by the dealer, to obtain and maintain a registration as a
municipal securities representative, a municipal securities principal
or a municipal fund securities limited principal. Additionally,
proposed Supplementary Material .03 would make clear that individuals
maintaining permissive registrations pursuant to Rule G-3 would be
considered qualified persons and, to the extent relevant to the
person's activities, the person would be subject to applicable MSRB
rules.\15\ The MSRB recognizes that allowing dealers to

maintain permissive qualifications for associated persons would support
a greater regulatory understanding of the municipal securities market
by persons currently in capacities not requiring a qualification
classification, and would further develop the knowledge and skills of
qualified persons, as it relates to the municipal securities market, by
allowing permissive qualifications specific to the municipal securities
business. Additionally, by harmonizing with FINRA's related rule on
permissive registrations, the industry is afforded the opportunity to
continue to develop a robust workforce and a depth of associated
persons holding professional qualifications for purposes of better
managing unanticipated staffing changes.
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    \15\ At this time, the MSRB does not believe it is necessary to
be prescriptive in this area and identify each potential rule that a
permissively-qualified person would be subject to based on a
particular set of activities. For example, the MSRB notes that a
rule such as Rule G-47, on time of trade disclosure, would have very
little application to a person holding a permissive qualification
who does not have customer contact regarding the purchase or sale of
municipal securities. Bearing that in mind, a facts and
circumstances analysis would apply as to the securities laws and
regulations applicable to persons holding permissive qualifications,
and such a determination would need to be made by the dealer, as
part of its supervisory obligations, under Rule G-27.
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FSA-Waiver Program
    FINRA's consolidated rule change adopted Rule 1210.09, which
established a waiver program for any individual registered with a
member who subsequently leaves the firm to work for a financial
services industry affiliate of a member,\16\ whereby, upon re-
association with a member, an individual may be granted a waiver from
having to requalify by examination (``FSA-waiver''). In order to be
granted a waiver under FINRA Rule 1210.09, an individual must be
initially designated as FSA-eligible at the time the individual
terminates association with a member and the individual must have
satisfied the criteria, under FINRA Rule 1210.09 for an FSA-waiver.
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    \16\ The term ``financial services industry affiliate of a
member'' as defined under FINRA Rule 1210.09 is ``a legal entity
that controls, is controlled by or is under common control with a
member and is regulated by the SEC, CFTC, state securities
authorities, federal or state banking authorities, state insurance
authorities, or substantially equivalent foreign regulatory
authorities.''
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    Additionally, under FINRA Rule 1210.09, to be eligible for an
initial designation as an FSA-eligible person by a FINRA member, an
individual must have been registered for a total of five years within
the most recent 10-year period prior to the designation. Once
designated as FSA-eligible, the individual is eligible for an FSA-
waiver for up to seven years, so long as the individual is continuously
working for a financial services industry affiliate of a member and
other conditions are satisfied.
    Pursuant to FINRA Rule 1240, during the period an FSA-eligible
person is working for a financial services industry affiliate, the
person is required to complete the Regulatory Element portion of CE
that correlates with such person's most recent registration category
and based on the same CE cycle had the person remained registered.
Consequently, a person loses the ability to qualify for an FSA-waiver
if such person fails to complete the mandatory Regulatory Element
portion of CE. FINRA Rule 1210.09 provides that once an FSA-eligible
person re-associates with a FINRA member, the firm can file a Form U4
(Uniform Application for Securities Industry Registration or Transfer)
and request that the individual's prior FINRA registration(s) be
reinstated without having to requalify by examination.
    The MSRB is proposing to amend Rule G-3 to adopt Supplementary
Material .04 that would allow a municipal securities representative,
municipal securities principal and/or a municipal fund securities
limited principal \17\ to be eligible for a waiver from having to
requalify by examination, for such MSRB qualifications, if the
following conditions are met:
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    \17\ An individual who has passed the Municipal Securities
Representative Qualification Examination (Series 52), Municipal
Securities Principal Qualification Examination (Series 53) and
Municipal Fund Securities Limited Principal Qualification
Examination (Series 51), respectively.
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    1. An individual must have been registered with a dealer for a
total of five years within the most recent 10-year period prior to
working for a financial services industry affiliate, which shall be a
legal entity that controls, is controlled by or is under common control
with a dealer and is regulated by the SEC, CFTC, state securities
authorities, federal or state banking authorities, state insurance
authorities, or substantially equivalent foreign regulatory
authorities.
    2. The individual has continuously worked for a financial services
industry affiliate(s) of a dealer since terminating association with a
dealer;
    3. The individual has completed the Regulatory Element portion of
CE consistent with the requirements under Rule G-3(i)(i)(A) based on
the person's most recent registration status and such CE has been
completed based on the same cycle, as if the person had remained
registered;
    4. The individual does not have any pending or adverse regulatory
matters, or terminations and has not otherwise been subject to a
statutory disqualification while working for a financial services
industry affiliate(s) of a dealer; and
    5. The waiver request is made within seven years of the
individual's initial designation as an FSA-eligible person.
    The MSRB is also proposing to amend Rule G-3(h)(i) to provide that
associated persons that have met the conditions under Supplementary
Material .04 shall be granted an FSA-waiver consistent with Rule G-
3(h)(i)(A) and (B). Providing for such waivers allows associated
persons of dealers a greater opportunity to enhance their financial
services industry knowledge without having to requalify by examination
each time a person decides to explore different career opportunities
with a financial services industry affiliate of a dealer.
Qualified Persons Functioning as Principals for a Limited Period
    Currently Rule G-3(b)(ii)(D) provides that an individual qualified
as a municipal securities representative, general securities
representative or general securities principal may function as a
municipal securities principal for a period of 90 days before passing
the Series 53 exam; and pursuant to Rule G-3(b)(iv)(B)(4) an individual
qualified as a general securities representative, investment company/
variable contracts limited representative, general securities principal
or investment company/variable contracts limited principal may function
as a municipal fund securities limited principal for a period of 90
days before passing the Series 51 exam. In addition, Rule G-3(c)(ii)(D)
provides that an individual qualified as a municipal securities
representative, general securities representative or general securities
principal may function as a municipal securities sales principal for a
period of 90 days before passing the General Securities Sales
Supervisory Qualification Examination (Series 9/10).
    FINRA's consolidated rule change modified a similar FINRA provision
\18\ permitting a registered person of a member to function as a
principal before passing the applicable principal examination,
increasing the time period from 90 calendar days to 120 calendar days,
to better align the time frame with the current examination enrollment
window.\19\ In addition, FINRA imposed an experience requirement
providing that a registered person must have at least 18 months of
experience functioning as a registered representative within the five-
year period immediately prior to being permitted to function as a
principal,

without the applicable principal qualification examination.
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    \18\ FINRA's consolidated rule change amended NASD Rule 1021 as
FINRA Rule 1210.04.
    \19\ An examination enrollment window is the timeframe between a
person registering for a professional qualification examination and
taking the examination.
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    Accordingly, the MSRB is proposing to amend Rule G-3(b) and (c) to
extend the limited time period in which a person could function as a
principal without being qualified with a principal examination,
assuming other qualification requirements are met, from 90 days to 120
calendar days in furtherance of also better aligning with the current
examination enrollment window. The MSRB is also proposing to amend Rule
G-3(b) and (c) to require that, before a qualified representative can
be permitted to function as a principal for 120 calendar days without
passing a principal examination, the qualified representative must have
at least 18 months of experience within the five-year period
immediately preceding the designation as principal. The MSRB believes
that establishing an experience requirement ensures that individuals
designated to supervise activities have an appropriate level of
experience as a qualified representative before acting as a principal
without passing the principal examination. For this reason, the 18-
month experience requirement will not apply to a qualified principal
who is designated to function in another principal capacity for 120
days before passing the additional principal qualification examination.
Continuing Education Program Requirements
A. Regulatory Element
    Currently, Rule G-3(i)(i)(A)(2) provides that any registered
persons who have not completed the Regulatory Element portion of CE
within the prescribed time frames will have their municipal securities
registration(s) deemed inactive until the Regulatory Element
requirements have been satisfied. Rule G-3(i)(i)(A)(2) also requires
for any person whose registration has been deemed inactive that such
person must cease all activities as a registered person and prohibits
such person from performing any duties and functioning in any capacity
requiring registration.
    FINRA's consolidated rule change codified existing guidance in
NASD's Notice to Members 95-35, regarding the impact of failing to
complete the Regulatory Element portion of CE on a person's activities
and compensation, as FINRA Rule 1240(a)(2). Specifically, approved
FINRA Rule 1240(a)(2) provides that any person whose registration has
been deemed inactive under the rule may not accept or solicit business
or receive any compensation for the purchase or sale of securities.\20\
FINRA's approved rule also prescribes that a person deemed inactive for
failing to complete the Regulatory Element portion of CE within the
prescribed time frames may, if it does not violate the firm's policy,
receive trail or residual commissions resulting from transactions that
were completed before the person's registration status was deemed
inactive. The MSRB is proposing to amend Rule G-3(i)(i)(A)(2) to adopt
the provision restricting any person whose municipal securities
registration(s) have been deemed inactive for failing to complete the
Regulatory Element portion of CE from receiving any compensation for
transactions in municipal securities, except for trails, residual
commissions, or like compensation resulting from transactions completed
before the person's inactive status, unless the dealer's policy
prohibits such trails, residual commissions or like compensation. The
MSRB recognizes that, by adding the clause ``like compensation,'' the
proposed amendment would provide flexibility as to the types of
compensation permitted under the rule as compared to FINRA's approved
rule. However, the MSRB believes that such differentiation is warranted
to recognize the various compensation arrangements for associated
persons of dealers with respect to transactions in municipal
securities. For example, the compensation received by an associated
person that is part of a dealer's public finance underwriting team is
generally not characterized as commissions.
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    \20\ The MSRB believes that this prohibition is adequately
addressed currently in Rule G-3(i)(i)(A)(2) and, therefore, is not
proposing to adopt FINRA's provision that more specifically
articulates that such persons are prohibited from accepting or
soliciting business.
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B. Firm Element
    Currently, Rule G-3(i)(i)(B), on Firm Element continuing education,
requires that a dealer maintain a continuing education program for its
covered registered persons to enhance their securities knowledge, skill
and professionalism. The MSRB has supported a principles-based approach
to compliance in this area and afforded dealers' considerable
flexibility in developing the scope and content for their Firm Element
portion of CE subject to the enumerated minimum standards for a firm's
training programs. A dealer's Firm Element portion of CE, as prescribed
in Rule G-3(i)(i)(B)(2)(b), must cover, with respect to municipal
securities products, services and strategies offered by the dealer, at
a minimum:
    (i) General investment features and associated risk factors;
    (ii) Suitability and sales practice considerations; and
    (iii) Applicable regulatory requirements.
    FINRA's consolidated rule change also requires, pursuant to FINRA
Rule 1240, that each member maintain a continuing education program for
its covered registered persons to enhance their securities knowledge,
skill and professionalism and that the training be appropriate for the
business of the member and, at a minimum, cover, among other things,
training in ethics and professional responsibility. The MSRB is
proposing to amend Rule G-3(i)(i)(B)(2)(b) to adopt a similar provision
to require dealers to also include training in ethics and professional
responsibility for its registered persons. The MSRB believes such
training promotes high standards of professionalism for registered
persons.
Registration Status of Armed Forces
    The MSRB does not currently have a rule that provides an inactive
status for an associated person that volunteers for or is called to
active military service in the Armed Forces of the United States that
would allow such person's registration to be tolled.
    FINRA's consolidated rule change consolidated NASD Rule IM-1000-2
as FINRA Rule 1210.10 with certain changes, which affords relief to a
registered person who volunteers for or is called to active military
service in the Armed Forces of the United States by tolling such
person's lapse of registration and CE obligations. More specifically,
FINRA Rule 1210.10 allows, after proper notification to FINRA, for a
member to place a registered person on inactive status, whereby such
person does not have to re-register upon returning to active
employment. An associated person who is placed on inactive status may
either return to active employment with the firm the person remained
registered with during the person's inactive status period or associate
with a different firm. FINRA Rule 1210.10 also relieves registered
persons on such inactive status from having to complete either the
Regulatory Element or Firm Element portion of CE during their active
military service.
    Additionally, during the pendency of the registered person's
inactive status, the person may continue to receive transaction-based
compensation, including continuing commissions. The employing member
may also allow an inactive person to enter into an

agreement with a registered person of the member to take over and
service clients' accounts, on behalf of the person, and to share
transaction-related compensation based upon business generated by the
accounts.
    A person who is no longer registered with a member will generally
have their professional qualifications lapse after a period of two
years. However, FINRA Rule 1210.10 provides that, for purposes of
determining the two year period, a formerly registered person who
volunteers for or is called to active military service will have that
time tolled, commencing on the date the person began active
service.\21\ FINRA Rule 1210.10 also provides that a sole proprietor
who volunteers for or is called to active military service will be
placed on inactive status and, in addition to the relief provided under
FINRA Rule 1210.10, as a registered person, the sole proprietor will
not be required to pay dues or assessments during the inactive period
and will not be required to pay an admission fee upon returning to his
or her investment banking or securities business.
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    \21\ More specifically, FINRA's rule states that the two-year
period for lapse of registration of its representative and
principal-level qualifications and the four-year expiration for the
SIE examination would be tolled for the period the individual is on
active service.
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    Rule G-3 generally provides that an individual who is not
associated with a dealer or municipal advisor for a period of more than
two years will have his or her professional qualifications lapse,
requiring such person to requalify by examination upon re-associating
with a dealer or municipal advisor. The MSRB is proposing to amend Rule
G-3 to adopt Supplementary Material .05, which would provide that, for
purposes of determining the two-year period, a formerly qualified
associated person who volunteers for or is called to active U.S.
military service will have that time tolled commencing on the date the
person began active military service. Importantly, Supplementary
Material .05 would preserve the time tolled by establishing that the
MSRB must receive notice of the person's period of active U.S. military
service within 90 days following the completion of such person's active
U.S. military service.\22\ Absent such notice, the deferral will
terminate and the period of time while on active U.S. military service
will not have been tolled.
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    \22\ The notice required to preserve such deferral shall be in
the form of a letter to the MSRB that includes the individual's name
(including, if applicable, the individual's CRD number), the start
and end dates of the individual's active U.S. military service and
the branch of service. Such notice shall be provided to the MSRB
electronically at [email protected].
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    In addition, proposed Supplementary Material .05 would permit an
associated person of a dealer or municipal advisor that is qualified
under Rule G-3, upon volunteering for or being called to active U.S.
military service, to be deemed inactive until the associated person
returns from active U.S. military service. Additionally, under the
proposed rule change, during the period the associated person is on
active U.S. military service, the person would remain eligible for
transaction-related compensation, including continuing commissions and
the firm could permit the inactive person to enter into an agreement
with a qualified associated person of the dealer or municipal advisor
to have such qualified associated person service clients on behalf of
the inactive person and share transaction-related compensation
resulting from the municipal securities or municipal advisory business
generated by the accounts. In addition, an associated person of a
dealer or municipal advisor would not be subject to the applicable CE
obligations under Rule G-3(i) during the period of active U.S. military
service, provided the MSRB receives notice of the associated person's
period of active U.S. military service within 30 days of completion of
such service.\23\
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    \23\ The notice required shall be in the form of a letter to the
MSRB on firm letterhead that includes the firm's MSRB ID number, the
individual's name (including, if applicable, the individual's CRD
number), the start and end dates of the individual's active U.S.
military service and the branch of service. Such notice shall be
provided to the MSRB electronically at [email protected].
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    Proposed Supplementary Material .05 would also provide that a
dealer or municipal advisor sole proprietor who temporarily closes his
or her business by reason of volunteering for or being called into
active U.S. military service shall be placed, on an inactive status
after notice to the MSRB. As a result, in addition to the relief
provided to the sole proprietor as a qualified associated person, the
sole proprietor will not be required to pay fees pursuant to Rules A-11
or A-12 that, if applicable, accrue during the inactive period.
Further, upon returning from active U.S. military service, the dealer
or municipal advisor sole proprietor must provide the MSRB notice
within 30 calendar days that the sole proprietor has returned to his or
her business.\24\
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    \24\ The notice required shall be in the form of a letter to the
MSRB on firm letterhead that includes the firm's MSRB ID number, the
individual's name (including, if applicable, the individual's CRD
number), the start and end dates of the individual's active military
service and the branch of service. Such notice shall be provided to
the MSRB electronically at [email protected].
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Waiting Periods for Retaking a Failed Examination
    Rule G-3(g) allows any associated person of a broker, dealer,
municipal securities dealer or municipal advisor who fails to pass an
MSRB qualification examination to take the examination again after a
period of 30 days has elapsed from the date of the prior examination,
except that any person who fails to pass an examination three or more
times in succession shall be prohibited from taking the examination
again until a period of six months has elapsed from the date of such
person's last attempt to pass the examination.
    FINRA's consolidated rule change consolidated NASD Rule 1070(e) as
FINRA Rule 1210.06 to provide that a person who fails a FINRA
examination may retake the examination after 30 calendar days from the
date of the person's last attempt to pass the examination, except a
person who fails an examination three or more times in succession
within a two-year period may only retake the examination after 180
calendar days from the date of the person's last attempt to pass the
examination. In addition, FINRA Rule 1210.06 extended these provisions
to the SIE examination.
    Although generally consistent with FINRA's approved rule, to
promote regulatory consistency, the MSRB is proposing to amend to Rule
G-3(g), on retaking of qualification examinations, to change the term
``six months'' to ``180 calendar days'' and to add ``within a two-year
period'' after the phrase ``three of more times in succession.'' The
addition of the phrase is intended to clarify the frequency with which
FINRA's test delivery system resets a candidate's exam history data.
Restructuring of the MSRB's Professional Qualification Examination
Program
A. Accepting the SIE Examination and Revising the Municipal Securities
Representative Qualification Examination
    FINRA's consolidated rule change established the SIE exam to
eliminate the duplicative testing of general securities knowledge
across its current representative-level qualification examinations by
moving such content into the SIE exam.\25\ With the establishment of
the SIE exam, FINRA restructured its representative-level exams into
specialized knowledge examinations to test knowledge of

concepts and rules specifically corresponding to a particular
representative-level qualification. FINRA Rule 1210.03, on
qualification examinations, provides that before a person can become
registered as a representative, such person must pass the SIE exam and
an appropriate representative-level qualification examination.
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    \25\ Individuals do not have to be associated with a FINRA
member to take the SIE examination, unlike FINRA's representative-
level qualification examinations.
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    In developing the SIE exam, FINRA established a committee of
industry professionals to create the content outline for the SIE exam
and invited staff from the MSRB's Professional Qualifications
department to participate on the committee.\26\ The SIE exam content
outline is divided into four sections, with each section addressing the
essential areas of general knowledge. The SIE exam will consist of 75
scored multiple-choice questions.\27\ Pursuant to FINRA Rule 1210.08, a
passing score on the SIE exam would be valid for four years and a
person that passes the SIE exam would have up to four years to pass a
representative-level qualification examination in order to become
registered in a representative-level capacity.
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    \26\ MSRB staff reviewed the SIE content outline and provided
substantive comments to ensure relevant MSRB rules were incorporated
and content specific to municipal securities was addressed on the
outline. FINRA filed the content outline and selection
specifications for the new SIE examination with the SEC for
immediate effectiveness. See Exchange Act Release No. 82578 (January
24, 2018), 83 FR 4375 (January 30, 2018) (SR-FINRA-2018-002).
    \27\ The passing score for the SIE exam will be published on
FINRA's website prior to the first administration of the examination
in October 2018.
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    The sections and the associated number of questions for each
section are:
     Section 1: Knowledge of Capital Markets (12 questions);
     Section 2: Understanding Products and Their Risks (33
questions);
     Section 3: Understanding Trading, Customer Accounts and
Prohibited Activities (23 questions); and
     Section 4: Overview of the Regulatory Framework (7
questions).
    Rule G-3(a)(ii), on qualification requirements, provides that
``every municipal securities representative shall take and pass the
Municipal Securities Representative Qualification Examination prior to
being qualified as a municipal securities representative.'' \28\ The
Series 52 is designed to establish that persons associated with dealers
that effect transactions in municipal securities have attained
specified levels of competence and knowledge to become registered as
municipal securities representatives.
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    \28\ An exception to the rule, allows only persons having been
duly qualified as a general securities representative by reason of
having passed the General Securities Representative Qualification
Examination before November 7, 2011 to qualify as a municipal
securities representative.
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    The Series 52, in its current format, has general securities
knowledge content that will be tested on the future SIE exam. The MSRB,
therefore, intends to restructure the Series 52 as a specialized
knowledge examination to better focus the content of the examination
more specifically to municipal securities knowledge. Accordingly, the
MSRB is proposing an amendment to Rule G-3(a)(ii) that would require an
individual to pass both the SIE exam and the revised Series 52 \29\ in
order to become qualified as a municipal securities representative.\30\
Additionally, the MSRB will continue to recognize, in their revised
forms as specialized knowledge examinations, the Municipal Securities
Sales Limited Representative Examination (Series 7) and the Limited
Representative-Investment Company Variable Contracts Product
Representative Examination (Series 6) in furtherance of regulatory
consistency and for purposes of avoiding impact to the current
distribution channel for the sale of municipal securities.
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    \29\ The content outlines for MSRB's qualification examinations
serve as a guide to the subject matters tested on each examination.
The MSRB's Series 52/53 Subcommittee of the Professional
Qualification Advisory Committee has been reviewing the current
content covered on the Series 52 examination to determine the
revisions that will be necessary to appropriately modify the Series
52 into a specialized knowledge examination. In connection with the
filing of this proposed rule change, and in advance of the October
1, 2018 effective date of the proposed rule change, the MSRB
anticipates filing with the SEC a revised Series 52 content outline
to reflect the modifications to the Series 52 examination and the
removal of duplicative content that would appear on the SIE exam.
    \30\ Since the SIE examination is meant to eliminate duplicative
testing of general content across representative-level examinations
and thereby, affording the opportunity for representative-level
examinations to become more specialized knowledge examinations there
is no impact to the Series 51 exam and Series 53 exam that would
necessitate restructuring of those principal-level exams.
    \31\ 15 U.S.C. 78o-4(b)(2)(A).
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2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with
Section 15B(b)(2)(A) of the Act,\31\ which provides that the MSRB's
rules shall prescribe:

such standards of training, experience, competence, and such other
qualifications as the Board finds necessary or appropriate in the
public interest or for the protection of investors and municipal
entities or obligated persons. In connection with the definition and
application of such standards the Board may . . . specify that all
or any portion of such standards shall be applicable to any such
class; and require persons in any such class to pass tests . . .

    The MSRB believes that, by requiring persons to take and pass a
professional qualification examination, such requirement promotes
public confidence by ensuring the minimum standards of training,
experience and competence required by the Board are being achieved. The
MSRB also believes that the restructuring of its current qualification
examination program is consistent with and in furtherance of the stated
objectives of Section 15B(b)(2)(A) of the Act because by ensuring the
Series 52 specialized knowledge examination focuses on the most
relevant laws, rules and regulations of the municipal securities
market, investors are more well protected. Also, by more closely
aligning the Series 52 specialized knowledge examination content to the
functions and activities performed by a municipal securities
representative, such associated persons are more likely to fully grasp
the prescribed regulatory standards, which aides to preserve the
integrity of the municipal securities market. Importantly, without
compromising the qualification standards, the proposed rule change
would improve the efficiency of the examination program by eliminating
duplicative testing of general securities knowledge.
    Moreover, consistent with Section 15B(b)(2)(A) of the Act,
permitting such persons to work at an industry affiliate of a dealer
without having to requalify by examination upon re-registering with a
dealer, by permitting them to seek a waiver from re-examination, lends
itself to a greater understanding of the financial services industry.
Further, the proposed rule change would allow individuals to maintain
their knowledge base while working in areas ancillary to the municipal
securities market, thereby providing such market professionals
additional securities knowledge, which, in turn, promotes confidence in
market professionals. The proposed rule change would also expand the
scope of permissive qualifications, which, among other things, would
allow dealers to develop a depth of associated persons with
qualifications to respond to unanticipated personnel changes and would
encourage a greater understanding of the municipal securities markets.
As proposed, by allowing individuals to function in a principal
capacity for a limited period of time before having to pass a
principal-level examination would

minimize operational disruptions to a dealer.
    Lastly, under the proposed rule change, allowing associated persons
that volunteer for or are called into active U.S. military service to
be placed in an inactive status allows for regulatory consistency and
promotes the public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The MSRB 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. The proposed rule change
reflects the MSRB's belief that its registration requirements should be
generally harmonized with FINRA's consolidated rule change for purposes
of regulatory efficiency and that such changes do not attach additional
burdens on dealers, and as applicable, municipal advisors. In addition,
the MSRB's restructuring of its qualification examination program to
better align with the functions and associated tasks currently
performed by a municipal securities representative makes for a more
effective qualification examination.

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

    The Board did not solicit comment on the proposed change.
Therefore, there are no comments on the proposed rule change received
from members, participants or others.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \32\ and Rule 19b-
4(f)(6) thereunder.\33\
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    \32\ 15 U.S.C. 78s(b)(3)(A).
    \33\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

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 protected]. Please include
File Number SR-MSRB-2018-04 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.

All submissions should refer to File Number SR-MSRB-2018-04. 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 website (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 website 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 the filing also will be available for inspection
and copying at the principal office of the MSRB. All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-MSRB-2018-04 and should be submitted on
or before July 17, 2018.

    For the Commission, pursuant to delegated authority.\34\
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    \34\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13619 Filed 6-25-18; 8:45 am]
 BILLING CODE 8011-01-P