[Federal Register Volume 86, Number 121 (Monday, June 28, 2021)]
[Notices]
[Pages 34069-34074]
[FR Doc No: 2021-13652]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34 -92222; File No. SR-IEX-2021-09]

Self-Regulatory Organizations: Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Provide
Temporary Remote Inspection Relief to IEX Members for Calendar Year
2021

June 22, 2021.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on June 11, 2021, the Investors Exchange LLC (``IEX'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 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

    Pursuant to the provisions of Section 19(b)(1) under the Act,\4\
and Rule 19b-4 thereunder,\5\ IEX is filing with the Commission a
proposed rule change to amend IEX Rule 5.110 (Supervision) to provide
temporary remote inspection relief to IEX Members for calendar year
2021.
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    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CFR 240.19b-4.
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    The text of the proposed rule change is available at the Exchange's
website at www.iextrading.com, at the principal office of the Exchange,
and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
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 statement may be examined at
the places specified in Item IV below. The self-regulatory organization
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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    In light of the operational challenges that IEX Members \6\ are
facing due to the outbreak of the coronavirus disease (COVID-19), the
Exchange proposes to amend IEX Rule 5.110 (Supervision) to adopt
Supplementary Material .15 (Temporary Relief to Allow Remote
Inspections for Calendar Year 2021) to provide member firms the option,
subject to specified requirements under the proposed supplementary
material, to complete remotely their calendar year 2021 inspection
obligations under IEX Rule 5.110(c) (Internal Inspections), without an
on-site visit to the office or location.\7\ The proposed rule change
would harmonize IEX Rule 5.110 with FINRA Rule 3110.17, which provides
FINRA member firms with the option, subject to specified requirements
under the supplementary material, to complete remotely their calendar
year 2021 inspection obligations without an on-site visit to the office
or location.\8\ The proposed rule change is necessitated by the
compelling health and safety concerns and the operational challenges
that Members are facing due to the sustained COVID-19 pandemic.\9\
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    \6\ See IEX Rule 1.160(s).
    \7\ SEC and Financial Industry Regulatory Authority, Inc.
(``FINRA'') staff have stated in guidance that inspections must
include a physical, on-site review component. See SEC National
Examination Risk Alert, Volume I, Issue 2 (November 30, 2011) and
FINRA Regulatory Notice 11-54 (November 2011) (joint SEC and FINRA
guidance stating, a ``broker-dealer must conduct on-site inspections
of each of its office locations; Office of Supervisory Jurisdictions
(`OSJs') and non-OSJ branches that supervise non-branch locations at
least annually, all non-supervising branch offices at least every
three years; and non-branch offices periodically.'') (footnote
defining an OSJ omitted). See also SEC Division of Market
Regulation, Staff Legal Bulletin No. 17: Remote Office Supervision
(March 19, 2004) (stating, in part, that broker-dealers that conduct
business through geographically dispersed offices have not
adequately discharged their supervisory obligations where there are
no on-site routine or ``for cause'' inspections of those offices).
    \8\ See Securities Exchange Act Release No. 90454 (November 18,
2020), 85 FR 75097 (November 24, 2020) (SR-FINRA-2020-040). FINRA's
rule change also permitted FINRA members to complete their 2020
remote inspections remotely, but IEX is only seeking to permit
temporary remote inspections for calendar year 2021 because the
applicable deadlines to complete the 2020 inspections have elapsed.
    \9\ The proposed rule change will automatically sunset on
December 31, 2021. If IEX seeks to extend the duration of the
temporary proposed rule beyond December 31, 2021, IEX will submit a
separate rule filing to further renew the temporary relief.
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    IEX Rule 5.110(c), Internal Inspections, requires, inter alia, that
``(1) [e]ach Member shall conduct a review, at least annually (on a
calendar year basis), of the businesses in which it engages . . . .''
Subparagraph (1)(A) of the rule requires, in relevant part, that
``[e]ach Member shall inspect annually (on a calendar year basis) every
[Office of Supervisory Jurisdiction or ``OSJ''] \10\ and any branch
office \11\ that supervises one or more non-branch locations.''
Subparagraph (1)(B) of the rule requires, in relevant part, that
``[e]ach Member shall inspect at least every three years every branch
office that does not supervise one or more non-branch locations . . .
.'' Subparagraph (1)(B) further provides the criteria that a Member
must consider when establishing the frequency of inspections for such
branch locations.
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    \10\ See IEX Rule 5.110(f)(1).
    \11\ See IEX Rule 5.110(f)(2).
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    On March 13, 2020 the United States declared a national emergency
in response to the pandemic.\12\ Around this time, many states issued
stay-at-home orders and imposed restrictions on businesses, social
activities, and travel to slow the spread of COVID-19 and reduce the
burden on the U.S. health care system in accordance with the
recommendations of public health experts.\13\ In response, like many
employers across U.S., Members closed their offices to the public,
transitioned their employees to telework arrangements to comply with
stay-at-home orders, and implemented other restrictive measures in an
effort to slow the spread of COVID-19 such as curtailing or eliminating
non-essential business travel, and significantly limiting or canceling
in-person activities.\14\
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    \12\ See Centers for Disease Control and Prevention (``CDC''),
International Classification of Diseases, Tenth Revision, Clinical
Modification, https://www.cdc.gov/nchs/data/icd/Announcement-New-ICD-code-for-coronavirus-3-18-2020.pdf. See also WHO Director-
General, Opening Remarks at the Media Briefing on COVID-19 (March
11, 2020), https://www.who.int/director-general/speeches/detail/who-director-general-s-opening-remarks-at-the-media-briefing-on-covid-19---11-march-2020.
    \13\ See S.J. Lange et al., Potential Indirect Effects of the
COVID-19 Pandemic on Use of Emergency Departments for Acute Life-
Threatening Conditions--United States, January-May 2020, Morbidity
and Mortality Weekly Report (June 26, 2020), https://www.cdc.gov/mmwr/volumes/69/wr/mm6925e2.htm.
    \14\ See generally FINRA Regulatory Notice 20-16 (May 2020)
(describing practices implemented by FINRA member firms to
transition to, and supervise in, a remote work environment during
the COVID-19 pandemic).
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    These pandemic-related operational changes have made it
impracticable for Members to conduct on-site inspections of OSJs,
branch offices, and non-branch locations because this compliance
function requires employees of the Member to travel to geographically
dispersed locations. Such travel not only has been restricted at times
by government orders, but also puts the health and safety of employees
at great risk of contracting and spreading COVID-19.\15\ By mid-year
2020, with many restrictive measures still in place, and in some
instances additional quarantine requirements imposed on interstate
travel, on-site inspections of offices or locations scheduled for
calendar year 2020 continued to remain in abeyance.\16\
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    \15\ See CDC, Travel During the COVID-19 Pandemic (stating in
part, ``Travel increases your chance of getting and spreading COVID-
19. . . . Delay travel and stay home to protect yourself and others
from COVID-19.''), https://www.cdc.gov/coronavirus/2019-ncov/travelers/travel-during-covid19.html (updated February 16, 2021).
    \16\ See, e.g., Government of the District of Columbia, Phase
Two (June 22, 2020) (announcing certain businesses to reopen and
activities to resume under specified conditions and stating that
anyone coming into Washington, DC from states specified as high-risk
is required to self-quarantine for 14 days), https://coronavirus.dc.gov/phasetwo (last visited March 2, 2021); New York
Department of Health, Interim Guidance for Quarantine Restrictions
on Travelers Arriving in New York State Following Out of State
Travel (November 3, 2020), available at https://coronavirus.health.ny.gov/system/files/documents/2020/11/interm_guidance_travel_advisory.pdf (last visited March 2, 2021);
and Chicago Department of Public Health, Emergency Travel Order
(issued July 2, 2020 and last updated February 23, 2021, requiring
travelers from states and territories meeting certain daily test
metrics to test negative for COVID-19 pre-arrival and quarantine for
10 days), https://www.chicago.gov/city/en/sites/covid-19/home/emergency-travel-order.html.

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    In recognition of the logistical challenges firms were facing at
that time to satisfy their on-site inspection obligations, FINRA
adopted Rule 3110.16 (Temporary Extension of Time to Complete Office
Inspections), extending the time by which firms must complete their
calendar year 2020 inspection obligations under FINRA Rule 3110(c) to
March 31, 2021, but emphasizing that the extension of time did not
relieve firms from conducting the on-site portion of the inspections of
their OSJs, branch offices, and non-branch locations.\17\ As noted
above, FINRA thereafter adopted Rule 3110.17 to allow for FINRA member
firms to conduct calendar year 2020 inspections and calendar year 2021
inspections remotely, without an on-site visit to the office or
location.\18\
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    \17\ See Securities Exchange Act Release No. 89188 (June 30,
2020), 85 FR 40713 (July 7, 2020) (SR-FINRA-2020-19). In this rule
filing, FINRA stated, among other things, that FINRA would consider
whether additional relief may be warranted to address any backlog of
2020 inspections that may continue to exist in light of ongoing
public health and safety concerns).
    \18\ See supra note 8.
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    The acute health and safety concerns related to COVID-19 persist,
with the number of confirmed cases of COVID-19 in the U.S. continuing
to increase since March 13, 2020.\19\ While Members have continued to
supervise OSJs, branch offices, and non-branch locations by, among
other things, implementing remote supervisory practices through novel
uses of technology as well as existing methods of supervision (e.g.,
supervisory checklists, surveillance tools, incident trackers, email
review, and trade exception reports),\20\ Members are still
experiencing logistical challenges related to conducting the on-site
portion of their inspections due to continuing business and
governmental restrictions and public health concerns.
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    \19\ See Johns Hopkins, Coronavirus Resource Center, COVID-19
Dashboard by the Center for Systems Science and Engineering at Johns
Hopkins University, https://coronavirus.jhu.edu/map.html (last
visited March 2, 2021).
    \20\ See FINRA Regulatory Notice 20-16.
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    Based on feedback described in FINRA's Regulatory Notice 20-16, in
comment letters submitted in response to FINRA's proposed rule changes,
and discussions with industry representatives, FINRA understood that
beginning in or about March 2020, many firms had suspended the on-site
component of their inspections scheduled for calendar year 2020. With
no certainty as to when pandemic-related health concerns and
restrictions will subside, firms will have a considerable backlog of
2020 inspections. Moreover, planning on-site inspections for calendar
year 2021 for OSJs, branch offices, and non-branch locations in the
current environment may be impacted as well. In light of pandemic-
related developments, IEX believes further sensible and tailored
temporary relief is warranted for Members to meet their inspection
obligations under IEX Rule 5.110(c) for calendar year 2021.
Proposed Supplementary Material .15 to IEX Rule 5.110
    In order to proactively address these concerns and to align its
Supervision rule with corresponding FINRA rules covered by its
regulatory services agreement with FINRA, IEX is proposing to adopt
Supplementary Material .15. As proposed, Supplementary Material .15
would provide Members, subject to specified requirements therein, the
option to conduct remotely the inspections of their OSJs, branch
offices, and non-branch locations for any inspections to be conducted
in calendar year 2021, without the requirement to conduct an on-site
visit to such office or location. As described further below, the
proposed rule change would set forth the dates by which inspections for
calendar year 2021 are due, the requirement to amend or supplement
written supervisory procedures for remote inspections, the use of
remote inspections as part of an effective supervisory system, and
documentation requirements. The Exchange believes this temporary remote
inspection option is a reasonable alternative to provide to Members to
fulfill their IEX Rule 5.110(c) obligations during these pressing
times, and is designed to achieve the investor protection objectives of
the inspection requirements under these unique circumstances.
    The responsibility of Members to supervise their associated persons
is a critical component of broker-dealer regulation. IEX Rule 5.110(a)
requires that ``[e]ach Member . . . establish and maintain a system to
supervise the activities of each associated person that is reasonably
designed to achieve compliance with applicable securities laws and
regulations, and with applicable IEX Rules . . . .'' The proposed
Supplementary Material is not intended to alter this core
responsibility. The advent of technology and automation in the
financial industry has significantly changed the way in which Members
and their associated persons conduct their business, communicate, and
meet their regulatory obligations. IEX recognizes that Members
generally use an array of technological tools to facilitate their
supervisory practices (e.g., surveillance systems; electronic tracking
programs or applications; and electronic communications, including
video conferencing tools), which many firms have leveraged to create
and implement remote inspection plans, on a temporary basis, in
response to pandemic-related operational challenges.\21\
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    \21\ See FINRA Regulatory Notice 20-16. See generally FINRA
White Paper, ``Technology Based Innovations for Regulatory
Compliance (``RegTech'') in the Securities Industry'' (September
2018) (reporting, among other things, that as financial services
firms seek to keep pace with regulatory compliance requirements,
they are turning to new and innovative regulatory tools to assist
them in meeting their obligations in an effective and efficient
manner), https://www.finra.org/sites/default/files/2018_RegTech_Report.pdf.
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    IEX believes that proposed Supplementary Material .15 to IEX Rule
5.110 would provide a sensibly tailored regulatory alternative for
Members to fulfill their obligations under IEX Rule 5.110(c) that would
not materially diminish, and is reasonably designed to achieve, the
investor protection objectives of the inspection requirements under
these unique circumstances. IEX further notes that the proposed relief
would be limited in duration to align with the extended date set forth
under FINRA Rule 3110.16 of December 31, 2021 for calendar year 2021
inspections.\22\
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    \22\ See supra note 8.
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A. Deadlines To Complete Calendar Year 2021 Inspections
    Currently, IEX Rule 5.110(c)(1) provides that an inspection of an
office or location must occur on a designated frequency, and the
periodicity of the required inspection varies depending on the
classification of the location or the nature of the activities that
take place. OSJs and supervisory branch offices must be inspected at
least annually (on a calendar-year basis); non-supervisory branch
offices, at least every three years; and non-branch locations, on a
periodic schedule at least once every three years.
    Proposed Supplementary Material .15(a) would provide that a Member
that is obligated to complete a 2021 inspection of an OSJ, branch
office or non-branch location, pursuant to the applicable periodicity
set forth under

IEX Rule 5.110(c)(1), may satisfy such obligation by conducting the
applicable inspection remotely, without an on-site visit to the office
or location subject to the other requirements set forth under the
proposed supplementary material. In addition, the proposed
Supplementary Material would expressly provide that inspections for
calendar year 2021 must be completed on or before December 31, 2021.
IEX believes that providing firms with the option to satisfy the
inspection component of IEX Rule 5.110(c) remotely would enable firms
to finish their calendar year 2021 inspections on or before December
31, 2021, particularly given the uncertainty surrounding planning
inspections at this time. Further, proposed Supplementary Material
.15(a) would affirm that a Member would remain subject to the other
requirements of IEX Rule 5.110(c).\23\
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    \23\ In addition to requiring firms to conduct inspections of
their offices and locations on a designated frequency, IEX Rule
5.110(c) generally requires a member to retain a written record of
the date upon which each review and inspection occurred, reduce a
location's inspection to a written report and keep each inspection
report on file either for a minimum of three years or, if the
location's inspection schedule is longer than three years, until the
next inspection report has been written. If applicable to the
location being inspected, the inspection report must include,
without limitation, the testing and verification of the member's
policies and procedures, including supervisory policies and
procedures, in specified areas. See IEX Rule 5.110(c)(2). In
addition, to prevent compromising the effectiveness of inspections
due to conflicts of interest, IEX Rule 5.110(c)(3)(B) requires a
Member to ensure that the person conducting the inspection is not an
associated person assigned to the location or is not directly or
indirectly supervised by, or otherwise reporting to, an associated
person assigned to that location.
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B. Written Supervisory Procedures for Remote Inspections
    IEX Rule 5.110(a) requires that Members establish and maintain a
supervisory system that is tailored specifically to the member firm's
business and addresses the activities of all its associated persons.
The Rule requires that a Member's supervisory system shall include a
number of elements, including ``[t]he establishment and maintenance of
written procedures required by this IEX Rule 5.110 . . . .'' Under IEX
Rule 5.110(b) (Written Procedures) a Member must establish, maintain,
and enforce written procedures to supervise the types of business in
which it engages and the activities of its associated persons that are
reasonably designed to achieve compliance with applicable securities
laws and regulations, and with applicable IEX rules.
    To underscore the importance of this existing requirement in the
context of remote inspections, proposed Supplementary Material .15(b)
would expressly provide that consistent with a Member's obligation
under Rule 5.110(b)(1), a Member that elects to conduct its calendar
year 2021 inspections remotely must amend or supplement its written
supervisory procedures to provide for remote inspections that are
reasonably designed to assist in detecting and preventing violations of
and achieving compliance with applicable securities laws and
regulations, and with applicable IEX rules. As proposed by the
Exchange, reasonably designed procedures for conducting remote
inspection of offices or locations should include, among other things,
a description of the methodology, including technologies permitted by
the member, that may be used to conduct remote inspections. In
addition, such procedures should include the use of other risk-based
systems employed generally by the Member to identify and prioritize for
review those areas that pose the greatest risk of potential violations
of applicable securities laws and regulations, and of applicable IEX
rules.\24\
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    \24\ Offices or locations that may present a higher risk profile
would include, for example, those that have associated persons
engaging in activities that involve handling customer funds or
securities, maintaining books and records as described under
applicable federal securities laws and IEX rules, order execution or
other activities that may be more susceptible to higher risks of
operational or sales practice wrongdoing, or have associated persons
assigned to an office or location who may be subject to additional
or heightened supervisory procedures.
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C. An Effective Supervisory System

    Internal inspections are a critical component of a Member's
fundamental obligation under IEX Rule 5.110 to establish and maintain a
system to supervise the activities of each associated person that is
reasonably designed to achieve compliance with applicable securities
laws and regulations, and with applicable IEX rules. Proposed
Supplementary Material .15(c) would expressly affirm this principle
that: (i) The requirement to conduct inspections of offices and
locations is one part of the Member's overall ongoing obligation to
have an effective supervisory system; and (ii) a Member must continue
with its reviews of the activities and functions occurring at all
offices and locations, whether or not such offices or locations are due
for an inspection under IEX Rule 5.110(c) in a given year or the
Member's election to conduct such inspections remotely. In addition,
under the proposed Supplementary Material, a Member's remote inspection
of an office or location, like the traditional on-site inspection,
would be held to the same standards for review as set forth under IEX
Rule 5.110, Supplementary Material .12 (Standards for Reasonable
Review).\25\ Further, in accordance with this obligation, proposed
Supplementary Material .15(c) would provide that where a Member's
remote inspection of an office or location identifies any indicators of
irregularities or misconduct (i.e., ``red flags''),\26\ the Member may
need to impose additional supervisory procedures for that office or
location, or may need to provide for more frequent monitoring or
oversight of that office or location, or both, including potentially a
subsequent physical, on-site visit on an announced

or unannounced basis when the Member's operational difficulties
associated with COVID-19 meetings abate, nationally or locally as
relevant, and the challenges the Member is facing in light of the
public health and safety concerns make such physical, on-site visits
feasible, using reasonable best efforts. Finally, to underscore the
limited duration of proposed supplementary material expressly states
that the temporary relief would not extend to a Member's inspection
requirements beyond calendar year 2021 and that such inspections must
be conducted in compliance with IEX Rule 5.110(c).
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    \25\ IEX Rule 5.110, Supplementary Material .12 provides: ``In
fulfilling its obligations under IEX Rule 5.110(c), each Member must
conduct a review, at least annually, of the businesses in which it
engages. The review must be reasonably designed to assist in
detecting and preventing violations of and achieving compliance with
applicable securities laws and regulations and with IEX rules. Each
Member shall establish and maintain supervisory procedures that must
take into consideration, among other things, the firm's size,
organizational structure, scope of business activities, number and
location of the firm's offices, the nature and complexity of the
products and services offered by the firm, the volume of business
done, the number of associated persons assigned to a location, the
disciplinary history of registered representatives or associated
persons, and any indicators of irregularities or misconduct (i.e.,
`red flags'), etc. The procedures established and reviews conducted
must provide that the quality of supervision at remote locations is
sufficient to ensure compliance with applicable securities laws and
regulations and with IEX rules. A Member must be especially diligent
in establishing procedures and conducting reasonable reviews with
respect to a non-branch location where a registered representative
engages in securities activities. Based on the factors outlined
above, Members may need to impose reasonably designed supervisory
procedures for certain locations or may need to provide for more
frequent reviews of certain locations.''
    \26\ Red flags that suggest the increased risk or occurrence of
violations may include, among other events: Customer complaints; an
unexplained increase or change in the types of investments or
trading concentration that a representative is recommending or
trading; an unexpected improvement in a representative's production,
lifestyle, or wealth; questionable or frequent transfers of cash or
securities between customer or third party accounts, or to or from
the representative; a representative that serves as a power of
attorney, trustee or in a similar capacity for a customer or has
discretionary control over a customer's account(s); representative
with disciplinary records; customer investments in one or a few
securities or class of securities that is inconsistent with firm
policies related to such investments; churning; trading that is
inconsistent with customer objectives; numerous trade corrections,
extensions, liquidations; or significant switching activity of
mutual funds or variable products held for short time periods. See
generally SEC Division of Market Regulation, Staff Legal Bulletin
No. 17: Remote Office Supervision (March 19, 2004); see also FINRA
Regulatory Notices 98-38 and 99-45.
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D. Documentation Requirement
    In general, IEX Rule 5.110(c)(2) describes the documentation
requirements associated with conducting internal inspections. The rule
requires a member to reduce the inspection and review conducted under
IEX Rule 5.110(c)(1) to a written report and specifies how long the
member must keep the report on file.\27\ If applicable to the location
being inspected, IEX Rule 5.110(c)(2)(A) specifies that the inspection
report must include, without limitation, the testing and verification
of the member's policies and procedures, including supervisory policies
and procedures for: (i) Safeguarding of customer funds and securities;
(ii) maintaining books and records; (iii) supervision of supervisory
personnel; (iv) transmittals of funds from customers to third party
accounts, from customer accounts to outside entities, from customer
accounts to locations other than a customer's primary residence, and
between customers and registered representatives, including the hand
delivery of checks; and (v) changes of customer account information,
including address and investment objectives changes, and validation of
such changes. In addition to the requirements under IEX Rule
5.110(c)(2), proposed Supplementary Material .15(d) would require
supplemental documentation by a Member that avails itself of the remote
inspection option. The Member must maintain and preserve a centralized
record for calendar year 2021 that separately identifies: (1) All
offices or locations that had inspections that were conducted remotely;
and (2) any offices or locations that the Member determined to impose
additional supervisory procedures or more frequent monitoring, as
provided in Supplementary Material .15(c). A Member's documentation of
the results of a remote inspection for an office or location must
identify any additional supervisory procedures or more frequent
monitoring for that office or location that were imposed as a result of
the remote inspection. IEX believes that this documentation requirement
would help readily distinguish the offices and locations that underwent
remote inspections and their attendant supervisory procedures, and
their more frequent monitoring, as applicable. IEX notes that even in
the current environment, Members have an ongoing obligation to
establish and maintain a system to supervise the activities of their
associated persons that is reasonably designed to achieve compliance
with applicable securities laws and regulations, and with applicable
IEX rules. IEX emphasizes that its proposed rule change is not intended
to lessen the core obligations prescribed under IEX Rule 5.110. IEX
believes that proposed Supplementary Material .15, which would permit
firms to remotely inspect, subject to specified requirements described
above, their offices and locations for any calendar year 2021
inspections, instead of an on-site visit to the office or location
would provide Members a way to comply with IEX Rule 5.110(c) that would
not materially diminish, and is reasonably designed to achieve, the
investor protection objectives of the inspection requirements under
these unique circumstances. IEX notes that potential risks that may
arise from providing Members the option to conduct their inspections
remotely are mitigated by Members' use of technology to meet their
supervisory obligations on an ongoing basis, the unique circumstances
under which they are operating, and the temporary nature of proposed
rule change, which would remain in place through December 31, 2021.\28\
IEX will continue to monitor the situation and engage with Members,
other financial regulators, and governmental authorities to determine
whether further regulatory relief or guidance related to IEX Rule
5.110(c) may be appropriate.
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    \27\ In addition to requiring Members to conduct inspections of
their offices and locations on a designated frequency, IEX Rule
5.110(c) generally requires a Member to retain a written record of
the date upon which each review and inspection occurred, reduce a
location's inspection to a written report and keep each inspection
report on file either for a minimum of three years or, if the
location's inspection schedule is longer than three years, until the
next inspection report has been written. If applicable to the
location being inspected, the inspection report must include,
without limitation, the testing and verification of the member's
policies and procedures, including supervisory policies and
procedures, in specified areas. See IEX Rule 5.110(c)(2). In
addition, to prevent compromising the effectiveness of inspections
due to conflicts of interest, the rule requires a Member to ensure
that the person conducting the inspection is not an associated
person assigned to the location or is not directly or indirectly
supervised by, or otherwise reporting to, an associated person
assigned to that location. See IEX Rule 5.110(c)(3).
    \28\ See supra note 9.
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    In addition, during the time that proposed Supplementary Material
.15 remains in effect, IEX will closely monitor the effectiveness of
remote inspections and their impacts--positive or negative--on Members'
overall supervisory systems to assess whether to propose to make
permanent a remote inspection option for some or all locations that
would not materially diminish, and is reasonably designed to achieve,
the investor protection objectives underpinning the requirement to
inspect branch offices or locations in accordance with IEX Rule
5.110(c).
    IEX has filed the proposed rule change for immediate effectiveness
and has requested that the SEC waive the requirement that the proposed
rule change not become operative for 30 days after the date of the
filing, so IEX can implement the proposed rule change immediately.
2. Statutory Basis
    IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \29\ of the Act in general, and furthers the
objectives of Section 6(b)(5) of the Act \30\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest. The Exchange's rule proposal is intended to harmonize
IEX's supervision rules, specifically with respect to the requirements
for inspections of Members' branch offices and other locations, with
those of FINRA, on which they are based. Consequently, the proposed
change will conform the Exchange's rules to changes made to
corresponding FINRA rules, thus promoting application of consistent
regulatory standards with respect to rules that FINRA enforces pursuant
to its regulatory services agreement with the Exchange.
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    \29\ 15 U.S.C. 78f.
    \30\ 15 U.S.C. 78f(b)(5).
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    In recognition of the impact of COVID-19 on performing on-site
inspections, the proposed rule change is intended to provide firms a
temporary regulatory option to conduct inspections of offices and
locations remotely for

calendar year 2021 inspections. This proposed supplementary material
does not relieve firms from meeting the core regulatory obligation to
establish and maintain a system to supervise the activities of each
associated person that is reasonably designed to achieve compliance
with applicable securities laws and regulations, and with applicable
IEX rules that directly serve investor protection. In a time when faced
with unique challenges resulting from the COVID-19 pandemic, IEX
believes that the proposed rule change provides sensibly tailored
relief that will afford firms the ability to observe the
recommendations of public health officials to provide for the health
and safety of their personnel, while continuing to serve and promote
the protection of investors and the public interest.

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

    IEX 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 is not
designed to address any competitive issue but to align the Exchange's
rules with those of FINRA, which will assist FINRA in its oversight
work done pursuant to a regulatory services agreement with IEX. The
proposed rule change will also provide for consistent application of
the Exchange's supervision rules with those of FINRA, on which they are
based. Consequently, the Exchange does not believe that the proposed
change implicates competition at all.

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

    Written comments on the proposed rule change were neither solicited
nor received.

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

    The Exchange has designated this rule filing as non-controversial
under Section 19(b)(3)(A) \31\ of the Act and Rule 19b-4(f)(6) \32\
thereunder. Because the 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 and Rule 19b-
4(f)(6) thereunder.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(3)(A).
    \32\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \33\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-IEX-2021-09 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-IEX-2021-09. This file
number should be included in 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 Section, 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 will also be available for inspection
and copying at the IEX's principal office and on its internet website
at www.iextrading.com. 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-IEX-2021-09
and should be submitted on or before July 19, 2021.
---------------------------------------------------------------------------

    \34\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\34\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-13652 Filed 6-25-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 221 (Wednesday, November 16, 2016)]
[Proposed Rules]
[Pages 80618-80620]
[FR Doc No: 2016-27438]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2016-9193; Airspace Docket No. 16-AGL-26]

Proposed Establishment of Class E Airspace; Wessington Springs,
SD

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: This action proposes to establish Class E airspace at
Wessington Springs, SD. Controlled airspace is necessary to accommodate
new Standard Instrument Approach

Procedures developed at Wessington Springs Airport, for the safety and
management of Instrument Flight Rules (IFR) operations at the airport.

DATES: Comments must be received on or before January 3, 2017.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE., West
Building Ground Floor, Room W12-140, Washington, DC 20590; telephone
(202) 366-9826 or<PHONE_NUMBER>. You must identify the docket number
FAA Docket No. FAA-2016-9193/Airspace Docket No.16-AGL-26, at the
beginning of your comments. You may also submit comments through the
Internet at http://www.regulations.gov. You may review the public
docket containing the proposal, any comments received, and any final
disposition in person in the Dockets Office between 9:00 a.m. and 5:00
p.m., Monday through Friday, except Federal holidays.
    FAA Order 7400.11A, Airspace Designations and Reporting Points, and
subsequent amendments can be viewed online at http://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 20591; telephone:<PHONE_NUMBER>.
The Order is also available for inspection at the National Archives and
Records Administration (NARA). For information on the availability of
FAA Order 7400.11A at NARA, call<PHONE_NUMBER>, or go to http://www.archives.gov/federal_register/code_of_federal-regulations/ibr_locations.html.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

FOR FURTHER INFORMATION CONTACT: Rebecca Shelby, Central Service
Center, Operations Support Group, Federal Aviation Administration,
Southwest Region, 10101 Hillwood Parkway, Fort Worth, TX 76177;
telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    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 would establish Class E airspace at Wessington Springs Airport,
Wessington Springs, SD.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2016-9193/
Airspace Docket No. 16-AGL-26.'' The postcard will be date/time stamped
and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's Web page at http://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received and any final disposition in person in the Dockets
Office (see ADDRESSES section for address and phone number) between
9:00 a.m. and 5:00 p.m., Monday through Friday, except Federal
holidays. An informal docket may also be examined during normal
business hours at the Central Service Center, Operation Support Group,
10101 Hillwood Parkway, Fort Worth, TX 76177.

Availability and Summary of Documents Proposed for Incorporation by
Reference

    This document proposes to amend FAA Order 7400.11A, Airspace
Designations and Reporting Points, dated August 3, 2016, and effective
September 15, 2016. FAA Order 7400.11A is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11A lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Proposal

    The FAA is proposing an amendment to Title 14, Code of Federal
Regulations (14 CFR) Part 71 by establishing Class E airspace extending
upward from 700 feet above the surface within a 6.5-mile radius of
Wessington Springs Airport, Wessington Springs, SD, to accommodate new
standard instrument approach procedures. Controlled airspace is needed
for the safety and management of IFR operations at the airport.
    Class E airspace areas are published in Paragraph 6005 of FAA Order
7400.11A, dated August 3, 2016, and effective September 15, 2016, which
is incorporated by reference in 14 CFR 71.1. The Class E airspace
designation listed in this document will be published subsequently in
the Order.

Regulatory Notices and Analyses

    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current,
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, would not have a
significant economic impact on a substantial number of small entities
under the criteria of the Regulatory Flexibility Act.

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and

Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (Air)

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 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 14 CFR Part 71 continues to read as
follows:

    Authority: 49 U.S.C. 106(f), 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 FAA Order 7400.11A,
Airspace Designations and Reporting Points, dated August 3, 2016, and
effective September 15, 2016, is amended as follows:

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

* * * * *

AGL SD E5 Wessington Springs, SD [New]

Wessington Springs Airport, SD
    (Lat. 44[deg]03'43'' N., long. 098[deg]31'56'' W.)

    That airspace extending upward from 700 feet above the surface
within a 6.5-mile radius of Wessington Springs Airport.

    Issued in Fort Worth, TX, on November 3, 2016.
Walter Tweedy,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2016-27438 Filed 11-15-16; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 86, Number 35 (Wednesday, February 24, 2021)]
[Proposed Rules]
[Pages 11189-11191]
[FR Doc No: 2021-03579]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2021-0029; Project Identifier MCAI-2020-01216-T]
RIN 2120-AA64

Airworthiness Directives; Dassault Aviation Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for certain Dassault Aviation Model FALCON 7X airplanes and Model
FALCON 2000EX airplanes. This proposed AD was prompted by a report that
non-certified ANCRA seat tracks were installed on some airplanes and
that those seat tracks might not sustain required loads during an
emergency landing. This proposed AD would require replacement of
certain ANCRA seat tracks with certified (Brownline) seat tracks, as
specified in a European Union Aviation Safety Agency (EASA) AD, which
is proposed for incorporation by reference. The FAA is proposing this
AD to address the unsafe condition on these products.

DATES: The FAA must receive comments on this proposed AD by April 12,
2021.

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 https://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: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For material that will be incorporated by reference (IBR) in this
AD, contact the EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany;
telephone +49 221 8999 000; email<EMAIL_ADDRESS>internet
www.easa.europa.eu. You may find this IBR material on the EASA website
at https://ad.easa.europa.eu. You may view this IBR material at the
FAA, Airworthiness Products Section, Operational Safety Branch, 2200
South 216th St., Des Moines, WA. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>. It is also available in
the AD docket on the internet at https://www.regulations.gov by
searching for and locating Docket No. FAA-2021-0029.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2021-
0029; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this NPRM, any comments received, and other information. The street
address for Docket Operations is listed above.

FOR FURTHER INFORMATION CONTACT: Tom Rodriguez, Aerospace Engineer,
Large Aircraft Section, International Validation Branch, FAA, 2200
South 216th St., Des Moines, WA 98198; telephone and fax<PHONE_NUMBER>;
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2021-0029; Project Identifier
MCAI-2020-01216-T'' at the beginning of your comments. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
the proposal because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The agency will also post a report summarizing each
substantive verbal contact received about this proposed AD.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this NPRM contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this NPRM, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission containing
CBI as ``PROPIN.'' The FAA will treat such marked submissions as
confidential under the FOIA, and they will not be placed in the public
docket of this NPRM. Submissions containing CBI should be sent to Tom
Rodriguez, Aerospace Engineer, Large Aircraft Section, International
Validation Branch, FAA, 2200 South 216th St., Des Moines, WA 98198;
telephone and fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>Any
commentary that the FAA receives which is not specifically designated
as CBI will be placed in the public docket for this rulemaking.

Background

    The EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA AD 2020-0188, dated August 24, 2020
(EASA AD 2020-0188) (also referred to as the Mandatory Continuing
Airworthiness Information, or the MCAI), to correct an unsafe condition
for certain Dassault Aviation Model FALCON 7X airplanes and Model
FALCON 2000EX airplanes.
    This proposed AD was prompted by a report that non-certified ANCRA
seat tracks were installed on some airplanes and that those seat tracks
might not sustain required loads during an emergency landing. The FAA
is proposing this AD to address seat tracks that could fail and lead to
seat detachment during an emergency landing, which could result in
injury to airplane occupants and prevent evacuation of the airplane.
See the

MCAI for additional background information.

Related Service Information Under 1 CFR Part 51

    EASA AD 2020-0188 describes procedures for replacement of certain
ANCRA seat tracks with certified (Brownline) seat tracks. This material
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.

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 the FAA's bilateral agreement with the State of Design Authority,
the FAA has been notified of the unsafe condition described in the MCAI
referenced above. The FAA is proposing this AD because the FAA
evaluated all the relevant information and determined the unsafe
condition described previously is likely to exist or develop in other
products of the same type design.

Proposed AD Requirements

    This proposed AD would require accomplishing the actions specified
in EASA AD 2020-0188 described previously, as incorporated by
reference, except for any differences identified as exceptions in the
regulatory text of this AD.

Explanation of Required Compliance Information

    In the FAA's ongoing efforts to improve the efficiency of the AD
process, the FAA initially worked with Airbus and EASA to develop a
process to use certain EASA ADs as the primary source of information
for compliance with requirements for corresponding FAA ADs. The FAA has
since coordinated with other manufacturers and civil aviation
authorities (CAAs) to use this process. As a result, EASA AD 2020-0188
will be incorporated by reference in the FAA final rule. This proposed
AD would, therefore, require compliance with EASA AD 2020-0188 in its
entirety, through that incorporation, except for any differences
identified as exceptions in the regulatory text of this proposed AD.
Using common terms that are the same as the heading of a particular
section in the EASA AD does not mean that operators need comply only
with that section. For example, where the AD requirement refers to
``all required actions and compliance times,'' compliance with this AD
requirement is not limited to the section titled ``Required Action(s)
and Compliance Time(s)'' in the EASA AD. Service information specified
in EASA AD 2020-0188 that is required for compliance with EASA AD 2020-
0188 will be available on the internet at https://www.regulations.gov
by searching for and locating Docket No. FAA-2021-0029 after the FAA
final rule is published.

Costs of Compliance

    The FAA estimates that this proposed AD affects 5 airplanes of U.S.
registry. The FAA estimates the following costs to comply with this
proposed AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
              Labor cost                       Parts cost            Cost per product     Cost on U.S. operators
----------------------------------------------------------------------------------------------------------------
10 work-hours x $85 per hour = $850...  Up to $1,900...........  Up to $2,750...........  Up to $13,750.
----------------------------------------------------------------------------------------------------------------

    According to the manufacturer, some or all of the costs of this
proposed AD may be covered under warranty, thereby reducing the cost
impact on affected operators. The FAA does not control warranty
coverage for affected operators. As a result, the FAA has included all
known costs in the 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.
    The FAA is 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

    The FAA 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) Would not affect intrastate aviation in Alaska, and
    (3) Would 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:

Dassault Aviation: Docket No. FAA-2021-0029; Project Identifier
MCAI-2020-01216-T.

(a) Comments Due Date

    The FAA must receive comments on this airworthiness directive
(AD) action by April 12, 2021.

(b) Affected Airworthiness Directives

    None.

(c) Applicability

    This AD applies to Dassault Aviation Model FALCON 7X airplanes
and Model FALCON 2000EX airplanes, certificated in

any category, as identified in European Union Aviation Safety Agency
(EASA) AD 2020-0188, dated August 24, 2020 (EASA AD 2020-0188).

(d) Subject

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

(e) Reason

    This AD was prompted by a report that non-certified ANCRA seat
tracks were installed on some airplanes and that those seat tracks
might not sustain required loads during an emergency landing. The
FAA is issuing this AD to address seat tracks that could fail and
lead to seat detachment during an emergency landing, which could
result in injury to airplane occupants and prevent evacuation of the
airplane.

(f) Compliance

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

(g) Requirements

    Except as specified in paragraph (h) of this AD: Comply with all
required actions and compliance times specified in, and in
accordance with, EASA AD 2020-0188.

(h) Exceptions to EASA AD 2020-0188

    (1) Where EASA AD 2020-0188 refers to its effective date, this
AD requires using the effective date of this AD.
    (2) The ``Remarks'' section of EASA AD 2020-0188 does not apply
to this AD.

(i) No Reporting Requirement

    Although the service information referenced in EASA AD 2020-0188
specifies to submit certain information to the manufacturer, this AD
does not include that requirement.

(j) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Large Aircraft Section, International Validation Branch, 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 responsible Flight
Standards Office, as appropriate. If sending information directly to
the Large Aircraft Section, International Validation Branch, send it
to the attention of the person identified in paragraph (k)(2) of
this AD. 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
responsible Flight Standards Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, Large Aircraft
Section, International Validation Branch, FAA; or EASA; or Dassault
Aviation's EASA Design Organization Approval (DOA). If approved by
the DOA, the approval must include the DOA-authorized signature.

(k) Related Information

    (1) For information about EASA AD 2020-0188, contact the EASA,
Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221
8999 000; email<EMAIL_ADDRESS>internet www.easa.europa.eu. You
may find this EASA AD on the EASA website at https://ad.easa.europa.eu. You may view this material at the FAA,
Airworthiness Products Section, Operational Safety Branch, 2200
South 216th St., Des Moines, WA. For information on the availability
of this material at the FAA, call<PHONE_NUMBER>. This material may be
found in the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-
2021-0029.
    (2) For more information about this AD, contact Tom Rodriguez,
Aerospace Engineer, Large Aircraft Section, International Validation
Branch, FAA, 2200 South 216th St., Des Moines, WA 98198; telephone
and fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
    Issued on February 4, 2021.
Gaetano A. Sciortino,
Deputy Director for Strategic Initiatives, Compliance & Airworthiness
Division, Aircraft Certification Service.

[FR Doc. 2021-03579 Filed 2-23-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 76, Number 202 (Wednesday, October 19, 2011)]
[Proposed Rules]
[Pages 64844-64847]
[FR Doc No: 2011-27006]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2010-0068; Directorate Identifier 2010-NE-05-AD]
RIN 2120-AA64

Airworthiness Directives; General Electric Company Turbofan
Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: We propose to supersede two existing airworthiness directives
(ADs) that apply to General Electric Company (GE) CF6-45 and CF6-50
series turbofan engines with certain low-pressure turbine (LPT) rotor
stage 3 disks installed. The existing ADs currently require inspections
of high pressure turbine (HPT) and LPT rotors, engine checks, and
surveys. Since we issued those ADs, GE has determined that the low-
cycle fatigue (LCF) lives of the LPT rotor stage 3 disks affected by
those ADs are below the current published engine manual life limits and
has introduced a new LPT rotor stage 3 disk part number. This proposed
AD would establish a new lower life limit for the LPT rotor stage 3
disks. We are proposing this AD to prevent critical life-limited
rotating engine part failure, which could result in an uncontained
engine failure and damage to the airplane.

DATES: We must receive comments on this proposed AD by December 5,
2011.

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: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this AD, contact General
Electric Company, GE-Aviation, Room 285, 1 Neumann Way, Cincinnati, OH
45215, phone:<PHONE_NUMBER>; e-mail<EMAIL_ADDRESS>You may review
copies of the referenced service information at the FAA, Engine &
Propeller Directorate, 12 New England Executive Park, Burlington, MA.
For information on the availability of this material at the FAA, call
781-238-7125.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov; 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 Office (phone:<PHONE_NUMBER>) is in the ADDRESSES
section. Comments will be available in the AD docket shortly after
receipt.

FOR FURTHER INFORMATION CONTACT: Tomasz Rakowski, Aerospace Engineer,
Engine Certification Office, FAA, Engine & Propeller Directorate, 12
New England Executive Park, Burlington, MA 01803; phone:<PHONE_NUMBER>;
fax:<PHONE_NUMBER>; e-mail<EMAIL_ADDRESS>
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-2010-0068;
Directorate Identifier 2010-NE-05-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 because of 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

    On January 14, 2011, we issued AD 2011-02-07, Amendment 39-16580
(76 FR 6323, February 4, 2011), for GE CF6-45 and CF6-50 series
turbofan engines with certain LPT rotor stage 3 disks installed. That
AD requires initial and repetitive HPT rotor stage 1 and stage 2 blade
inspections for wear and damage, including excessive airfoil material
loss, and initial and repetitive exhaust gas temperature (EGT) system
checks (inspections). That AD also requires a one-time ultrasonic
inspection (UI) of the LPT rotor stage 3 disk forward spacer arm,
fluorescent penetrant inspection (FPI) of the LPT rotor stage 3 disk
under certain conditions, and removal of cracked disks from service
before further flight. That AD also requires initial and repetitive
engine core vibration surveys and reporting to the FAA any crack
findings, disks that fail the UI, and engines that fail the engine core
vibration survey. That AD resulted from reports received of additional
causes of HPT rotor imbalance not addressed in AD 2010-12-10, Amendment
39-16331 (75 FR 32649, June 9, 2010), and from two additional LPT rotor
stage 3 disk events since the original AD 2010-06-15, Amendment 39-
16240 (75 FR 12661, March 17, 2010) was issued.
    On August 15, 2011, we issued AD 2011-18-01, Amendment 39-16783 (76
FR 52213, August 22, 2011) to require performing an FPI of the LPT
rotor stage 3 disk forward spacer arm at every shop visit when the LPT
module assembly is separated from the engine. That AD resulted from
seven reports of uncontained failures of LPT rotor stage 3 disks and
eight reports of cracked LPT rotor stage 3 disks found during shop
visit inspections.
    We issued those ADs to prevent critical life-limited rotating
engine part failure, which could result in an uncontained engine
failure and damage to the airplane.

Actions Since Existing AD Was Issued

    Since we issued AD 2011-02-07, Amendment 39-16580 (76 FR 6323,
February 4, 2011), GE has determined that the LCF lives of the LPT
rotor stage 3 disks affected by that AD were below the current
published manual life limits, and has introduced a new LPT rotor stage
3 disk part number. Moreover, we no longer require the reporting of
inspection findings to the FAA.

FAA's Determination

    We are proposing this AD because we evaluated all the relevant
information and determined the unsafe condition described previously is
likely to exist or develop in other products of the same type design.

Proposed AD Requirements

    This proposed AD would retain the requirements of AD 2011-02-07
Amendment 39-16580 (76 FR 6323, February 4, 2011), and AD 2011-18-01,
Amendment 39-16783 (76 FR 52213, August 22, 2011), except that
reporting to the FAA would no longer be required and there would be an
optional LPT rotor stage 3 disk removal after a failed HPT blade
borescope inspection or a failed engine core vibration survey. This
proposed AD would also establish a new lower life limit for the LPT
rotor stage 3 disk part numbers listed in Table 1 of the proposed AD,
and would require removing these disks from service at times determined
by a drawdown plan.

Costs of Compliance

    We estimate that this proposed AD would affect 387 CF6-45 and CF6-
50 series turbofan engines installed on airplanes of U.S. registry. We
also estimate that it would take about 8 work-hours to perform the HPT
blade inspection, 6 work-hours to perform a vibration survey, 4 work-
hours to perform an ultrasonic inspection, 2 work-hours to perform an
EGT resistance check, 1 work-hour to perform an EGT thermocouple
inspection, and 7 work-hours to clean and perform an FPI of the LPT
rotor stage 3 disk for each engine. The average labor rate is $85 per
work-hour. The cost estimate for the work just described was covered in
the two ADs we are proposing to supersede. For this proposed AD, we
estimate that a replacement LPT rotor stage 3 disk prorated part cost
is $75,000. Based on these figures, we estimate the total cost of this
proposed AD to U.S. operators to be $29,025,000.

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 have 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 that the 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

    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]

    2. The FAA amends Sec.  39.13 by removing airworthiness directive
(AD) 2011-02-07, Amendment 39-16580 (76 FR 6323, February 4, 2011) and
AD 2011-18-01, Amendment 39-16783 (76 FR 52213, August 22, 2011), and
adding the following new AD:

General Electric Company: Docket No. FAA-2010-0068; Directorate
Identifier 2010-NE-05-AD.

(a) Comments Due Date

    The FAA must receive comments on this AD action by December 5,
2011.

(b) Affected ADs

    This AD supersedes AD 2011-02-07, Amendment 39-16580 and AD
2011-18-01, Amendment 39-16783.

(c) Applicability

    This AD applies to General Electric Company (GE) CF6-45A, CF6-
45A2, CF6-50A, CF6-50C, CF6-50CA, CF6-50C1, CF6-50C2, CF6-50C2B,
CF6-50C2D, CF6-50E, CF6-50E1, CF6-50E2, and CF6-50-E2D turbofan
engines, including engines marked on the engine data plate as CF6-
50C2-F and CF6-50C2-R, with any of the low-pressure turbine (LPT)
rotor stage 3 disk part numbers listed in Table 1 of this AD
installed.

                                                 Table 1--Applicable LPT Rotor Stage 3 Disk Part Numbers
--------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------------------------------
                9061M23P06                     9061M23P07                     9061M23P08                     9061M23P09                    9224M75P01
                9061M23P10                     1473M90P01                     1473M90P02                     1473M90P03                    1473M90P04
                9061M23P12                     9061M23P14                     9061M23P15                     9061M23P16                    1479M75P01
                1479M75P02                     1479M75P03                     1479M75P04                     1479M75P05                    1479M75P06
                1479M75P07                     1479M75P08                     1479M75P09                     1479M75P11                    1479M75P13
                1479M75P14                            N/A                            N/A                            N/A                           N/A
--------------------------------------------------------------------------------------------------------------------------------------------------------

(d) Unsafe Condition

    This AD was prompted by the determination that a new lower life
limit for the LPT rotor stage 3 disks listed in Table 1 of this AD
is necessary. We are issuing this AD to prevent critical life-
limited rotating engine part failure, which could result in an
uncontained engine failure and damage to the airplane.

(e) Compliance

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

(f) Borescope Inspections of HPT Rotor Stage 1 and Stage 2 Blades

    For the borescope inspections required by paragraphs (f)(1),
(f)(2), and (f)(3) of this AD, inspect the blades from the forward
and aft directions. Inspect all areas of the blade airfoil. Your
inspection must include blade leading and trailing edges, and their
convex and concave airfoil surfaces. Inspect for signs of impact,
cracking, burning, damage, or distress.
    (1) Perform an initial borescope inspection of the HPT rotor
stage 1 and stage 2 blades, within 10 cycles after the effective
date of this AD.
    (2) Thereafter, repeat the borescope inspection of the HPT rotor
stage 1 and stage 2 blades within every 75 cycles-since-last-
inspection (CSLI).
    (3) Borescope-inspect the HPT rotor stage 1 and stage 2 blades
within the cycle limits after the engine has experienced any of the
events specified in Table 2 of this AD.
    (4) Remove any engine from service before further flight if the
engine fails any of the borescope inspections required by this AD.

           Table 2--Conditional Borescope Inspection Criteria
------------------------------------------------------------------------
  If the engine has  experienced:          Then borescope-inspect:
------------------------------------------------------------------------
(i) An exhaust gas temperature      Within 10 cycles.
 (EGT) above redline.
(ii) A shift in the smoothed EGT    Within 10 cycles.
 trending data that exceeds 18
 [deg]F (10 [deg]C), but is less
 than or equal to 36 [deg]F (20
 [deg]C).
(iii) A shift in the smoothed EGT   Before further flight.
 trending data that exceeds 36
 [deg]F (20 [deg]C).
(iv) Two consecutive raw EGT trend  Within 10 cycles.
 data points that exceed 18 [deg]F
 (10 [deg]C) above the smoothed
 average, but is less than or
 equal to 36 [deg]F (20 [deg]C).
(v) Two consecutive raw EGT trend   Before further flight.
 data points that exceed 36 [deg]F
 (20 [deg]C) above the smoothed
 average.
------------------------------------------------------------------------

(g) Actions Required for Engines With Damaged HPT Rotor Blades

    For those engines that fail any borescope inspection
requirements of this AD, before returning the engine to service:
    (1) Remove the LPT rotor stage 3 disk from service; or
    (2) Perform a fluorescent-penetrant inspection (FPI) of the
inner diameter surface forward cone body (forward spacer arm) of the
LPT rotor stage 3 disk as specified in paragraphs (l)(1)(i) through
(l)(1)(iii) of this AD.

(h) EGT Thermocouple Probe Inspections

    (1) Inspect the EGT thermocouple probe for damage within 50
cycles after the effective date of this AD or before accumulating
750 CSLI, whichever occurs later.
    (2) Thereafter, re-inspect the EGT thermocouple probe for damage
within every 750 CSLI.
    (3) If any EGT thermocouple probe shows wear through the
thermocouple guide sleeve, remove and replace the EGT thermocouple
probe before further flight, and ensure the turbine mid-frame liner
does not contact the EGT thermocouple probe.

(i) EGT System Resistance Check Inspections

    (1) Perform an EGT system resistance check within 50 cycles from
the effective date of this AD or before accumulating 750 cycles-
since-the-last-resistance check on the EGT system, whichever occurs
later.
    (2) Thereafter, repeat the EGT system resistance check within
every 750 cycles-since-the-last-resistance check.
    (3) Remove and replace, or repair any EGT system component that
fails the resistance system check before further flight.

(j) Ultrasonic Inspection (UI) of the LPT Rotor Stage 3 Disk Forward
Spacer Arm

    Within 75 cycles after the effective date of this AD, perform a
UI of the forward cone body (forward spacer arm) of the LPT rotor
stage 3 disk. Use paragraphs E. through K. of Appendix A of GE
Service Bulletin (SB) No. CF6-50-SB 72-1312, Revision 1, dated
October 18, 2010, to do the UI.

(k) Engine Core Vibration Survey

    (1) Within 75 cycles after the effective date of this AD,
perform an initial engine core vibration survey.
    (2) Use about a one-minute acceleration and a one-minute
deceleration of the engine between ground idle and 84% N2 (about
8,250 rpm) to perform the engine core vibration survey.
    (3) Use a spectral/trim balance analyzer or equivalent to
measure the N2 rotor vibration.
    (4) If the vibration level is above 5 mils Double Amplitude
then, before further flight, remove the engine from service.
    (5) For those engines that fail any engine core vibration survey
requirements of this AD, then before returning the engine to
service:
    (i) Remove the LPT rotor stage 3 disk from service; or
    (ii) Perform an FPI of the inner diameter surface forward cone
body (forward spacer arm) of the LPT rotor stage 3 disk as specified
in paragraphs (l)(1)(i) through (l)(1)(iii) of this AD.

    (6) Thereafter, within every 350 cycles-since-the-last-engine
core vibration survey, perform the engine core vibration survey as
required in paragraphs (k)(1) through (k)(5) of this AD.
    (7) If the engine has experienced any vibration reported by
maintenance or flight crew that is suspected to be caused by the
engine core (N2), perform the engine core vibration survey as
required in paragraphs (k)(1) through (k)(5) of this AD within 10
cycles after the report.

(l) Initial and Repetitive FPI of LPT Rotor Stage 3 Disks

    (1) At the next shop visit after the effective date of this AD:
    (i) Clean the LPT rotor stage 3 disk forward spacer arm,
including the use of a wet-abrasive blast to eliminate residual or
background fluorescence.
    (ii) Perform an FPI of the LPT rotor stage 3 disk forward spacer
arm for cracks and for a band of fluorescence. Include all areas of
the disk forward spacer arm and the inner diameter surface forward
cone body (forward spacer arm) of the LPT rotor stage 3 disk.
    (iii) Remove the disk from service before further flight if a
crack or a band of fluorescence is present.
    (2) Thereafter, clean and perform an FPI of the LPT rotor stage
3 disk forward spacer arm, as specified in paragraphs (l)(1)(i)
through (l)(1)(iii) of this AD, at each engine shop visit that
occurs after 1,000 cycles-since-the last FPI of the LPT rotor stage
3 disk forward spacer arm.

(m) Removal of LPT Rotor Stage 3 Disks

    Remove LPT rotor stage 3 disks listed in Table 1 from service as
follows:
    (1) For disks that have fewer than 3,200 flight cycles since new
(CSN) on the effective date of this AD, remove the disk from service
before exceeding 6,200 CSN.
    (2) For disks that have 3,200 CSN or more on the effective date
of this AD, do the following:
    (i) If the engine has a shop visit before the disk exceeds 6,200
CSN, remove the disk from service before exceeding 6,200 CSN.
    (ii) If the engine does not have a shop visit before the disk
exceeds 6,200 CSN, remove the disk from service at the next shop
visit after 6,200 CSN, not to exceed 3,000 cycles from the effective
date of this AD.

(n) Installation Prohibition

    (1) After the effective date of this AD, do not install or
reinstall in any engine any LPT rotor stage 3 disk that exceeds the
new life limit of 6,200 CSN.
    (2) Remove from service any LPT rotor stage 3 disk that is
installed or re-installed after the effective date of this AD,
before the disk exceeds the new life limit of 6,200 CSN.

(o) Definitions

    (1) For the purposes of this AD, an EGT above redline is a
confirmed over-temperature indication that is not a result of EGT
system error.
    (2) For the purposes of this AD, a shift in the smoothed EGT
trending data is a shift in a rolling average of EGT readings that
can be confirmed by a corresponding shift in the trending of fuel
flow or fan speed/core speed (N1/N2) relationship. You can find
further guidance about evaluating EGT trend data in GE Company
Service Rep Tip 373 ''Guidelines For Parameter Trend Monitoring.''
    (3) For the purposes of this AD, an engine shop visit is the
induction of an engine into the shop after the effective date of
this AD, where the separation of a major engine flange occurs;
except the following maintenance actions, or any combination, are
not considered engine shop visits:
    (i) Introduction of an engine into a shop solely for removal of
the compressor top or bottom case for airfoil maintenance or
variable stator vane bushing replacement.
    (ii) Introduction of an engine into a shop solely for removal or
replacement of the stage 1 fan disk.
    (iii) Introduction of an engine into a shop solely for
replacement of the turbine rear frame.
    (iv) Introduction of an engine into a shop solely for
replacement of the accessory gearbox or transfer gearbox, or both.
    (v) Introduction of an engine into a shop solely for replacement
of the fan forward case.

(p) Previous Credit

    (1) A borescope inspection performed before the effective date
of this AD using AD 2010-06-15, Amendment 39-16240 (75 FR 12661,
March 17, 2010) or AD 2010-12-10, Amendment 39-16331 (75 FR 32649,
June 9, 2010) or AD 2011-02-07, Amendment 39-16580 (76 FR 6323,
February 4, 2011) within the last 75 cycles, satisfies the initial
borescope inspection requirement in paragraph (f)(1) of this AD.
    (2) A UI performed before the effective date of this AD using AD
2011-02-07, Amendment 39-16580 (76 FR 6323, February 4, 2011) or GE
SB No. CF6-50-SB 72-1312, dated August 9, 2010 or GE SB No. CF6-50-
SB 72-1312 Revision 1, dated October 18, 2010, satisfies the
inspection requirement in paragraph (j) of this AD.
    (3) An engine core vibration survey performed before the
effective date of this AD using AD 2011-02-07, Amendment 39-16580
(76 FR 6323, February 4, 2011) or GE SB No. CF6-50-SB 72-1313, dated
August 9, 2010 or GE SB No. CF6-50-SB 72-1313 Revision 1, dated
October 18, 2010, within the last 350 cycles, satisfies the initial
survey requirement in paragraphs (k)(1) through (k)(5) of this AD.
    (4) An FPI of the LPT rotor stage 3 disk forward spacer arm
performed before the effective date of this AD using AD 2011-18-01,
Amendment 39-16783 (75 FR 3, 52213, August 22, 2011), within the
last 1,000 flight cycles of the LPT rotor stage 3 disk, satisfies
the initial inspection requirements in paragraphs (l)(1)(i) through
(l)(1)(iii) of this AD.

(q) Alternative Methods of Compliance (AMOCs)

    (1) AMOCs previously approved for AD 2010-06-15, Amendment 39-
16240 (75 FR 12661, March 17, 2010) are not approved for this AD.
However, AMOCs previously approved for AD 2010-12-10, Amendment 39-
16331 (75 FR 32649, June 9, 2010), AD 2011-02-07, Amendment 39-16580
(76 FR 6323, February 4, 2011), or AD 2011-18-01, Amendment 39-16783
(76 FR 52213, August 22, 2011) are approved for this AD.
    (2) The Manager, Engine Certification Office, may approve
alternative methods of compliance for this AD. Use the procedures
found in 14 CFR 39.19 to make your request.

(r) Related Information

    (1) For more information about this AD, contact Tomasz Rakowski,
Aerospace Engineer, Engine Certification Office, FAA, Engine &
Propeller Directorate, 12 New England Executive Park, Burlington, MA
01803; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; e-mail:
<EMAIL_ADDRESS>    (2) For service information identified in this AD, contact
General Electric Company, GE-Aviation, Room 285, 1 Neumann Way,
Cincinnati, OH 45215, phone:<PHONE_NUMBER>; e-mail<EMAIL_ADDRESS>
You may review copies of the referenced service information at the
FAA, Engine & Propeller Directorate, 12 New England Executive Park,
Burlington, MA. For information on the availability of this material
at the FAA, call<PHONE_NUMBER>.

    Issued in Burlington, Massachusetts, on October 13, 2011.
Peter A. White,
Manager, Engine & Propeller Directorate, Aircraft Certification
Service.
[FR Doc. 2011-27006 Filed 10-18-11; 8:45 am]
BILLING CODE 4910-13-P