[Federal Register Volume 89, Number 28 (Friday, February 9, 2024)]
[Proposed Rules]
[Pages 9728-9735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00469]



[[Page 9727]]

Vol. 89

Friday,

No. 28

February 9, 2024

Part XXVI





 Securities and Exchange Commission





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Semiannual Regulatory Agenda

  Federal Register / Vol. 89 , No. 28 / Friday, February 9, 2024 / UA: 
Reg Flex Agenda  

[[Page 9728]]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Ch. II

[Release Nos. 33-11225; 34-98226; IA-6388; IC-34993; File No. S7-14-23]


Regulatory Flexibility Agenda

AGENCY: Securities and Exchange Commission.

ACTION: Semiannual Regulatory Agenda.

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

SUMMARY: The Securities and Exchange Commission is publishing the 
Chair's agenda of rulemaking actions pursuant to the Regulatory 
Flexibility Act (RFA) (Pub. L. 96-354, 94 Stat. 1164) (Sept. 19, 1980). 
The items listed in the Regulatory Flexibility Agenda for Fall 2023 
reflect only the priorities of the Chair of the U.S. Securities and 
Exchange Commission, and do not necessarily reflect the views and 
priorities of any individual Commissioner.
    Information in the agenda was accurate on August 22, 2023, the date 
on which the Commission's staff completed compilation of the data. To 
the extent possible, rulemaking actions by the Commission since that 
date have been reflected in the agenda. The Commission invites 
questions and public comment on the agenda and on the individual agenda 
entries.
    The Commission is now printing in the Federal Register, along with 
our preamble, only those agenda entries for which we have indicated 
that preparation of an RFA analysis is required.
    The Commission's complete RFA agenda will be available online at 
www.reginfo.gov.

DATES: Comments should be received on or before March 11, 2024.

ADDRESSES: Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/other.shtml); or
     Send an email to [email protected]. Please include 
File Number S7-14-23 on the subject line.

Paper Comments

     Send paper comments to Vanessa A. Countryman, Secretary, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549-1090.

All submissions should refer to File No. S7-14-23. 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 website (https://www.sec.gov/rules/other.shtml). Comments 
are also 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 a.m. and 3 p.m. 
Operating conditions may limit access to the Commission's Public 
Reference Room. Do not include personal identifying information in 
submissions; you should submit only information that you wish to make 
available publicly. We may redact in part or withhold entirely from 
publication submitted material that is obscene or subject to copyright 
protection.

FOR FURTHER INFORMATION CONTACT: Sarit Klein, Office of the General 
Counsel, 202-551-5037.

SUPPLEMENTARY INFORMATION: The RFA requires each Federal agency, twice 
each year, to publish in the Federal Register an agenda identifying 
rules that the agency expects to consider in the next 12 months that 
are likely to have a significant economic impact on a substantial 
number of small entities (5 U.S.C. 602(a)). The RFA specifically 
provides that publication of the agenda does not preclude an agency 
from considering or acting on any matter not included in the agenda and 
that an agency is not required to consider or act on any matter that is 
included in the agenda (5 U.S.C. 602(d)). The Commission may consider 
or act on any matter earlier or later than the estimated date provided 
on the agenda. While the agenda reflects the current intent to complete 
a number of rulemakings in the next year, the precise dates for each 
rulemaking at this point are uncertain. Actions that do not have an 
estimated date are placed in the long-term category; the Commission may 
nevertheless act on items in that category within the next 12 months. 
The agenda includes new entries, entries carried over from prior 
publications, and rulemaking actions that have been completed (or 
withdrawn) since publication of the last agenda.
    The following abbreviations for the acts administered by the 
Commission are used in the agenda:

``Securities Act''--Securities Act of 1933
``Exchange Act''--Securities Exchange Act of 1934
``Investment Company Act''--Investment Company Act of 1940
``Investment Advisers Act''--Investment Advisers Act of 1940
``Dodd Frank Act''--Dodd-Frank Wall Street Reform and Consumer 
Protection Act

    The Commission invites public comment on the agenda and on the 
individual agenda entries.

    By the Commission.

    Dated: August 25, 2023.
Vanessa A. Countryman,
Secretary.

                       3 OOD--Proposed Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
610.......................  EDGAR Filer Access and             3235-AM58
                             Account Management.
------------------------------------------------------------------------


          Division of Corporation Finance--Proposed Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
611.......................  Rule 144 Holding Period...         3235-AM78
------------------------------------------------------------------------


[[Page 9729]]


            Division of Corporation Finance--Final Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
612.......................  Prohibition Against                3235-AL04
                             Conflicts of Interest in
                             Certain Securitizations.
613.......................  Rule 14a-8 Amendments.....         3235-AM91
------------------------------------------------------------------------


           Division of Corporation Finance--Completed Actions
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
614.......................  Cybersecurity Risk                 3235-AM89
                             Management, Strategy,
                             Governance, and Incident
                             Disclosure.
------------------------------------------------------------------------


           Division of Investment Management--Final Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
615.......................  Safeguarding Advisory              3235-AM32
                             Client Assets.
616.......................  Enhanced Disclosures by            3235-AM96
                             Certain Investment
                             Advisers and Investment
                             Companies about
                             Environmental, Social,
                             and Governance Investment
                             Practices.
617.......................  Open-End Fund Liquidity            3235-AM98
                             Risk Management Programs
                             and Swing Pricing; Form N-
                             PORT Reporting.
618.......................  Cybersecurity Risk                 3235-AN08
                             Management for Investment
                             Advisers, Registered
                             Investment Companies, and
                             Business Development
                             Companies.
619.......................  Outsourcing by Investment          3235-AN18
                             Advisers.
620.......................  Regulation S P: Privacy of         3235-AN26
                             Consumer Financial
                             Information and
                             Safeguarding Customer
                             Information.
------------------------------------------------------------------------


          Division of Investment Management--Completed Actions
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
621.......................  Investment Company Names..         3235-AM72
622.......................  Private Fund Advisers;             3235-AN07
                             Documentation of
                             Registered Investment
                             Adviser Compliance
                             Reviews.
------------------------------------------------------------------------


            Division of Trading and Markets--Final Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
623.......................  Amendments to Exchange Act         3235-AM45
                             Rule 3b-16 re Definition
                             of ``Exchange'';
                             Regulation ATS and
                             Regulation SCI for ATSs
                             That Trade U.S.
                             Government Securities,
                             NMS Stocks and Other
                             Securities.
624.......................  Cybersecurity Risk                 3235-AN15
                             Management Rules for
                             Broker-Dealers, Clearing
                             Agencies, MSBSPs, the
                             MSRB, National Securities
                             Associations, National
                             Securities Exchanges,
                             SBSDRs, SBS Dealers, and
                             Transfer Agents.
625.......................  Regulation NMS: Minimum            3235-AN23
                             Pricing Increments,
                             Access Fees, and
                             Transparency of Better
                             Priced Orders.
626.......................  Regulation Best Execution.         3235-AN24
------------------------------------------------------------------------


           Division of Trading and Markets--Completed Actions
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
627.......................  Exemption for Certain              3235-AN17
                             Exchange Members.
------------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION (SEC)

3 OOD

Proposed Rule Stage

610. EDGAR Filer Access and Account Management [3235-AM58]

    Legal Authority: 15 U.S.C. 77c; 15 U.S.C. 77f; 15 U.S.C. 77g; 15 
U.S.C. 78l; 15 U.S.C. 78m; . . .
    Abstract: The Commission proposed rule and form amendments 
concerning access to and management of accounts on the Commission's 
Electronic Data Gathering, Analysis, and Retrieval system (``EDGAR'') 
that are related to potential technical changes to EDGAR (collectively 
referred to as ``EDGAR Next''). The Commission proposed to require that 
electronic filers (``filers'') authorize and maintain designated 
individuals as account administrators and that filers, through their 
account administrators, take certain actions to manage their accounts 
on a dashboard on EDGAR. Further, the Commission proposed that filers 
may only authorize individuals as account administrators or in the 
other roles described herein if those individuals first obtain 
individual account credentials in the manner to be specified in the 
EDGAR Filer Manual.

[[Page 9730]]

As part of the EDGAR Next changes, the Commission would offer filers 
optional Application Programming Interfaces (``APIs'') for machine-to-
machine communication with EDGAR, including submission of filings and 
retrieval of related information. If the proposed rule and form 
amendments are adopted, the Commission would make corresponding changes 
to the EDGAR Filer Manual and implement the potential technical 
changes.
    Timetable:

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               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   09/22/23  88 FR 65524
NPRM Comment Period End.............   11/21/23
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Rosemary Filou, Chief Counsel, EDGAR Business 
Office, Securities and Exchange Commission, 100 F Street NE, 
Washington, DC 20549, Phone: 202 551-4813, Email: [email protected].
    RIN: 3235-AM58

SECURITIES AND EXCHANGE COMMISSION (SEC)

Division of Corporation Finance

Proposed Rule Stage

611. Rule 144 Holding Period [3235-AM78]

    Legal Authority: 15 U.S.C. 77b; 15 U.S.C. 77b note; 15 U.S.C. 77c; 
15 U.S.C. 77d; 15 U.S.C. 77f; 15 U.S.C. 77g; 15 U.S.C. 77h; 15 U.S.C. 
77j; 15 U.S.C. 77r; 15 U.S.C. 77s; 15 U.S.C. 77z-3; 15 U.S.C. 77sss; 15 
U.S.C. 78c; 15 U.S.C. 78d; 15 U.S.C. 78j; 15 U.S.C. 78l; 15 U.S.C. 78m; 
15 U.S.C. 78n; 15 U.S.C. 78o; 15 U.S.C. 78o-7 note; 15 U.S.C. 78t; 15 
U.S.C. 78w; 15 U.S.C. 78ll(d); 15 U.S.C. 78mm; 15 U.S.C. 80a-8; 15 
U.S.C. 80a-24; 15 U.S.C. 80a-26; 15 U.S.C. 80a-28; 15 U.S.C. 80a-29; 15 
U.S.C. 80a-30; 15 U.S.C. 80a-37; Pub. L. 112-106, sec. 201(a), sec. 
401, 126 Stat. 313 (2012); Sec. 401 Pub. L. 112-106, 126 Stat. 313 
(2012); Sec. 107, Pub. L. 112-106, 126 Stat. 312; 12 U.S.C. 5461 et 
seq. ; 15 U.S.C. 77s(a); 15 U.S.C. 77z-2; 15 U.S.C. 77sss(a); 15 U.S.C. 
78a et seq.; 15 U.S.C. 78c(b); 15 U.S.C. 78o(d); 15 U.S.C. 78u-5; 15 
U.S.C. 78w(a); 15 U.S.C. 78ll; 15 U.S.C. 80a-2(a); 15 U.S.C. 80a-3; 15 
U.S.C. 80a-6(c); 15 U.S.C. 80a-9; 15 U.S.C. 80a-10; 15 U.S.C. 80a-13; 
15 U.S.C. 7201 et seq. ; 18 U.S.C. 1350; Sec. 107, Pub. L. 112-106, 126 
Stat. 312; Sec. 953(b) Pub. L. 111-203, 124 Stat. 1904; Sec. 102(a)(3) 
Pub. L. 112-106, 126 Stat. 309 (2012); Sec. 107, Pub. L. 112-106, 126 
Stat. 313 (2012); Sec. 72001 Pub. L. 114-94, 129 Stat. 1312 (2015); . . 
.
    Abstract: The Division is considering recommending that the 
Commission repropose amendments to Rule 144, a non-exclusive safe 
harbor that permits the public resale of restricted or control 
securities if the conditions of the rule are met.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   01/19/21  86 FR 5063
NPRM Comment Period End.............   03/22/21
Second NPRM.........................   10/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Felicia H. Kung, Division of Corporation Finance, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549, Phone: 202 551-3430, Email: [email protected].
    RIN: 3235-AM78

SECURITIES AND EXCHANGE COMMISSION (SEC)

Division of Corporation Finance

Final Rule Stage

612. Prohibition Against Conflicts of Interest in Certain 
Securitizations [3235-AL04]

    Legal Authority: 15 U.S.C. 77b; 15 U.S.C. 77b note; 15 U.S.C. 77c; 
15 U.S.C. 77d; 15 U.S.C. 77f; 15 U.S.C. 77g; 15 U.S.C. 77h; 15 U.S.C. 
77j; 15 U.S.C. 77r; 15 U.S.C. 77s; 15 U.S.C. 77z-3; 15 U.S.C. 77sss; 15 
U.S.C. 78c; 15 U.S.C. 78d; 15 U.S.C. 78j; 15 U.S.C. 78l; 15 U.S.C. 78m; 
15 U.S.C. 78n; 15 U.S.C. 78o; 15 U.S.C. 78o-7 note; 15 U.S.C. 78t; 15 
U.S.C. 78w; 15 U.S.C. 78ll(d); 15 U.S.C. 78mm; 15 U.S.C. 80a-8; 15 
U.S.C. 80a-24; 15 U.S.C. 80a-28; 15 U.S.C. 80a-29; 15 U.S.C. 80a-30; 15 
U.S.C. 80a-37; Pub. L. 112-106, sec. 201(a), sec. 401, 126 Stat. 
313(2012), unless otherwise noted; . . .
    Abstract: The Division is considering recommending that the 
Commission adopt a rule under the Securities Act to implement the 
prohibition under section 621 of the Dodd-Frank Act on material 
conflicts of interest in connection with certain securitizations. The 
proposed rules would prohibit, for a specified period, a securitization 
participant from engaging in any transaction that would result in a 
material conflict of interest between a securitization participant and 
an investor in the relevant asset-backed security. As specified in 
section 621, the proposed rule would provide exceptions for risk-
mitigating hedging activities, bona fide market-making activities, and 
liquidity commitments.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   09/28/11  76 FR 60320
NPRM Comment Period End.............   12/19/11
NPRM Comment Period Extended........   12/16/11  76 FR 78181
NPRM Comment Period Extended End....   01/13/12
NPRM Comment Period Extended........   01/03/12  77 FR 24
NPRM Comment Period Extended End....   02/13/12
Second NPRM.........................   02/14/23  88 FR 9678
Second NPRM Comment Period End......   03/27/23
Final Action........................   11/00/23
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Rolaine Bancroft, Division of Corporation Finance, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549, Phone: 202 551-3430.
    RIN: 3235-AL04

613. Rule 14A-8 Amendments [3235-AM91]

    Legal Authority: 5 U.S.C. 78c(b); 15 U.S.C. 78n; 15 U.S.C. 78w(a); 
15 U.S.C. 80a-20(a); 15 U.S.C. 80a-29; 15 U.S.C. 80a-37; . . .
    Abstract: The Division is considering recommending that the 
Commission adopt rule amendments regarding shareholder proposals under 
Rule 14a-8. The Commission proposed to, among other things, update 
certain substantive bases for exclusion of shareholder proposals under 
the Commission's shareholder proposal rule. The proposed amendments 
would amend the substantial implementation exclusion, the duplication 
exclusion, and the resubmission exclusion.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   07/27/22  87 FR 45052
NPRM Comment Period End.............   09/12/22
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Hughes Bates, Special Counsel, Division of 
Corporation Finance, Securities and

[[Page 9731]]

Exchange Commission, 100 F Street NE, Washington, DC 20549, Phone: 202 
551-3500, Email: [email protected].
    RIN: 3235-AM91

SECURITIES AND EXCHANGE COMMISSION (SEC)

Division of Corporation Finance

Completed Actions

614. Cybersecurity Risk Management, Strategy, Governance, and Incident 
Disclosure [3235-AM89]

    Legal Authority: 15 U.S.C. 77g; 15 U.S.C. 77s(a); 15 U.S.C. 78c(b); 
15 U.S.C. 78l; 15 U.S.C. 78m; 15 U.S.C. 78n; 15 U.S.C. 78o; 15 U.S.C. 
78w(a); . . .
    Abstract: The Commission adopted new rules to enhance and 
standardize disclosures regarding cybersecurity risk management, 
strategy, governance, and incidents by public companies that are 
subject to the reporting requirements of the Securities Exchange Act of 
1934. Specifically, the Commission adopted amendments to require 
current disclosure about material cybersecurity incidents. The 
Commission also adopted rules requiring periodic disclosures about a 
registrant's processes to assess, identify, and manage material 
cybersecurity risks, management's role in assessing and managing 
material cybersecurity risks, and the board of directors' oversight of 
cybersecurity risks. Lastly, the final rules require the cybersecurity 
disclosures to be presented in Inline eXtensible Business Reporting 
Language (``Inline XBRL'').
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   03/23/22  87 FR 16590
NPRM Comment Period End.............   05/09/22
NPRM Comment Period Reopened........   10/18/22  87 FR 63016
NPRM Comment Period End.............   11/01/22
Final Action........................   08/04/23  88 FR 51896
Final Action Effective..............   09/05/23
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Nabeel Cheema, Division of Corporation Finance, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549, Phone: 202 551-3430, Email: [email protected].
    RIN: 3235-AM89

SECURITIES AND EXCHANGE COMMISSION (SEC)

Division of Investment Management

Final Rule Stage

615. Safeguarding Advisory Client Assets [3235-AM32]

    Legal Authority: 15 U.S.C. 80b-4; 15 U.S.C. 80b-6(4); 15 U.S.C. 
80b-11(a); 15 U.S.C. 80b-3(c)(1); 15 U.S.C. 80b-18b; 15 U.S.C. 80b-11; 
15 U.S.C. 80b-23
    Abstract: The Division is considering recommending that the 
Commission adopt amendments to existing rules and/or adopt new rules 
under the Investment Advisers Act of 1940 to improve and modernize the 
regulations around the custody of funds or investments of clients by 
Investment Advisers.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   03/09/23  88 FR 14672
NPRM Comment Period End.............   05/08/23
NPRM Comment Period Reopened........   08/30/23  88 FR 59818
NPRM Comment Period Reopened End....   10/30/23
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Melissa Harke, Division of Investment Management, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549, Phone: 202 551-6722, Email: [email protected].
    RIN: 3235-AM32

616. Enhanced Disclosures by Certain Investment Advisers and Investment 
Companies About Environmental, Social, and Governance Investment 
Practices [3235-AM96]

    Legal Authority: 15 U.S.C. 77e; 15 U.S.C. 77f; 15 U.S.C. 77g; 15 
U.S.C. 77j; 15 U.S.C. 77s; 15 U.S.C. 78m; 15 U.S.C. 78o; 15 U.S.C. 78w; 
15 U.S.C. 78ll; 15 U.S.C. 80a-8; 15 U.S.C. 80a-24; 15 U.S.C. 80a-29; 15 
U.S.C. 80a-37; 15 U.S.C. 80b-3; 15 U.S.C. 80b-4; 15 U.S.C. 80b-11; 44 
U.S.C. 3506 and 3507; . . .
    Abstract: The Division is considering recommending that the 
Commission adopt requirements for investment companies and investment 
advisers related to environmental, social and governance (ESG) factors, 
including ESG claims and related disclosures. Among other things, the 
Commission proposed to amend rules and forms under both the Investment 
Advisers Act of 1940 and the Investment Company Act of 1940 to require 
registered investment advisers, certain advisers that are exempt from 
registration, registered investment companies, and business development 
companies, to provide additional information regarding their ESG 
investment practices. The proposed amendments to these forms and 
associated rules seek to facilitate enhanced disclosure of ESG issues 
to clients and shareholders. The proposed rules and form amendments are 
designed to create a consistent, comparable, and decision-useful 
regulatory framework for ESG advisory services and investment companies 
to inform and protect investors while facilitating further innovation 
in this evolving area of the asset management industry.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   06/17/22  87 FR 36654
NPRM Comment Period End.............   08/16/22
NPRM Comment Period Reopened........   10/18/22  87 FR 63016
NPRM Comment Period End.............   11/01/22
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Nathan Schurr, Division of Investment Management, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549, Phone: 202 551-6394, Email: [email protected].
    RIN: 3235-AM96

617. Open-End Fund Liquidity Risk Management Programs and Swing 
Pricing; Form N-PORT Reporting [3235-AM98]

    Legal Authority: 15 U.S.C. 80a-22(c); 15 U.S.C. 80a-37(a); 15 
U.S.C. 80a-31(a); 15 U.S.C. 80a-35b; 15 U.S.C. 80a-6; 15 U.S.C. 80a-8; 
15 U.S.C. 80a-22; 15 U.S.C. 80a-24; 15 U.S.C. 80a-29; 15 U.S.C. 80a-30; 
15 U.S.C. 80a-33; 15 U.S.C. 80a-37; 15 U.S.C. 80a-44; 15 U.S.C. 80b-6; 
15 U.S.C. 78j; 15 U.S.C. 78m; 15 U.S.C. 78o; 15 U.S.C. 78w; 15 U.S.C. 
78ll; 15 U.S.C. 77g; 15 U.S.C. 77j; 15 U.S.C. 77q; 15 U.S.C. 77s; 15 
U.S.C. 77sss; 44 U.S.C. 3506; 44 U.S.C. 3507
    Abstract: The Division is considering recommending that the 
Commission adopt changes to regulatory requirements relating to open-
end fund's liquidity and dilution management. The Commission proposed 
amendments to its current rules for open-end management investment 
companies (``open-end funds'') regarding liquidity risk

[[Page 9732]]

management programs and swing pricing. The proposed amendments are 
designed to improve liquidity risk management programs to better 
prepare funds for stressed conditions and improve transparency in 
liquidity classifications. The amendments are also designed to mitigate 
dilution of shareholders' interests in a fund by requiring any open-end 
fund, other than a money market fund or exchange-traded fund, to use 
swing pricing to adjust a fund's net asset value (``NAV'') per share to 
pass on costs stemming from shareholder purchase or redemption activity 
to the shareholders engaged in that activity. In addition, to help 
operationalize the proposed swing pricing requirement, and to improve 
order processing more generally, the Commission proposed a ``hard 
close'' requirement for these funds. Finally, the Commission proposed 
amendments to reporting and disclosure requirements on Forms N-PORT, N-
1A, and N-CEN that apply to certain registered investment companies, 
including registered open-end funds (other than money market funds), 
registered closed-end funds, and unit investment trusts. The proposed 
amendments would require more frequent reporting of monthly portfolio 
holdings and related information to the Commission and the public, 
amend certain reported identifiers, and make other amendments to 
require additional information about funds' liquidity risk management 
and use of swing pricing.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   12/16/22  87 FR 77172
NPRM Comment Period End.............   02/14/23
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Mykaila DeLesDernier, Senior Counsel, Division of 
Investment Management, Securities and Exchange Commission, 100 F Street 
NE, Washington, DC 20549, Phone: 202 551-5129, Email: 
[email protected].
    RIN: 3235-AM98

618. Cybersecurity Risk Management for Investment Advisers, Registered 
Investment Companies, and Business Development Companies [3235-AN08]

    Legal Authority: 5 U.S.C. 80a-30(a); 15 U.S.C. 80a-37(a); 15 U.S.C. 
80b-4; 15 U.S.C. 80b-11; 15 U.S.C. 80b-3(d); 15 U.S.C. 80b-6(4); 15 
U.S.C. 80b-11(a); 15 U.S.C. 80b-11(h); 15 U.S.C. 80a-8; 15 U.S.C. 80a-
29; 15 U.S.C. 80a-37; 15 U.S.C. 80b-3(c)(1)
    Abstract: The Division is considering recommending that the 
Commission adopt rules to enhance fund and investment adviser 
disclosures and governance relating to cybersecurity risks. The 
Commission proposed new rules to require registered investment advisers 
(``advisers'') and investment companies (``funds'') to adopt and 
implement written cybersecurity policies and procedures reasonably 
designed to address cybersecurity risks. The Commission also proposed a 
new rule and form under the Advisers Act to require advisers to report 
significant cybersecurity incidents affecting the adviser, or its fund 
or private fund clients, to the Commission. With respect to disclosure, 
the Commission proposed amendments to various forms regarding the 
disclosure related to significant cybersecurity risks and cybersecurity 
incidents that affect advisers and funds and their clients and 
shareholders. Finally, the Commission proposed new recordkeeping 
requirements under the Advisers Act and Investment Company Act.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   03/09/22  87 FR 13524
NPRM Comment Period End.............   04/11/22
NPRM Comment Period Reopened........   03/21/23  88 FR 16921
NPRM Comment Period End.............   05/22/23
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Christopher Staley, Branch Chief, Securities and 
Exchange Commission, 100 F Street NE, Washington, DC 20549, Phone: 202 
551-8475, Email: [email protected].
    RIN: 3235-AN08

619. Outsourcing by Investment Advisers [3235-AN18]

    Legal Authority: 15 U.S.C. 10b-3; 15 U.S.C. 10b-4; 15 U.S.C. 10b-
11; 15 U.S.C. 77s(a); 15 U.S.C. 78w(a); 15 U.S.C. 78bb(e)(2); 15 U.S.C. 
7sss(a); 15 U.S.C. 80a-37(a)
    Abstract: The Division is considering recommending that the 
Commission adopt rules related to the oversight of third-party service 
providers. The Commission proposed a new rule under the Investment 
Advisers Act of 1940 to prohibit registered investment advisers 
(``advisers'') from outsourcing certain services or functions without 
first meeting minimum requirements. The proposed rule would require 
advisers to conduct due diligence prior to engaging a service provider 
to perform certain services or functions. It would further require 
advisers to periodically monitor the performance and reassess the 
retention of the service provider in accordance with due diligence 
requirements to reasonably determine that it is appropriate to continue 
to outsource those services or functions to that service provider. The 
Commission also proposed corresponding amendments to the investment 
adviser registration form to collect census-type information about the 
service providers defined in the proposed rule. In addition, the 
Commission proposed related amendments to the Advisers Act books and 
records rule, including a new provision requiring advisers that rely on 
a third party to make and/or keep books and records to conduct due 
diligence and monitoring of that third party and obtain certain 
reasonable assurances that the third party will meet certain standards.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   11/16/22  87 FR 68816
NPRM Comment Period End.............   12/27/22
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Mark Stewart, Securities and Exchange Commission, 
100 F Street NE, Washington, DC 20549, Phone: 202 551-4410, Email: 
[email protected].
    RIN: 3235-AN18

620. Regulation S P: Privacy of Consumer Financial Information and 
Safeguarding Customer Information [3235-AN26]

    Legal Authority: 15 U.S.C. 78q; 15 U.S.C. 78q-1; 15 U.S.C. 78mm; 15 
U.S.C. 80a-30; 15 U.S.C. 80a-37; 15 U.S.C. 80b-4; 15 U.S.C. 80b-4a; 15 
U.S.C. 80b-11; 15 U.S.C. 1681w(a); 15 U.S.C. 6801; 15 U.S.C. 6804; 15 
U.S.C. 6805; 15 U.S.C. 6825; 15 U.S.C. 78w
    Abstract: The Division of Investment Management and Division of 
Trading and Markets are considering recommending that the Commission 
adopt amendments to Regulation S-P. The Commission proposed rule 
amendments that would require brokers and dealers, investment companies 
and investment advisers registered with the Commission to adopt written 
policies and procedures for incident response programs to address 
unauthorized access to or use of customer information, including 
procedures for providing timely notification to

[[Page 9733]]

individuals affected by an incident involving sensitive customer 
information with details about the incident and information designed to 
help affected individuals respond appropriately. The Commission also 
proposed to broaden the scope of information covered by amending 
requirements for safeguarding customer records and information, and for 
properly disposing of consumer report information. In addition, the 
proposed amendments would extend the application of the safeguards 
provisions to transfer agents. The proposed amendments would also 
include requirements to maintain written records documenting compliance 
with the proposed amended rules. Finally, the proposed amendments would 
conform annual privacy notice delivery provisions to the terms of an 
exception provided by a statutory amendment to the Gramm-Leach-Bliley 
Act.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   04/06/23  88 FR 20616
NPRM Comment Period End.............   06/05/23
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Zeena Abdul-Rahman, Senior Counsel, Division of 
Investment Management, Securities and Exchange Commission, 100 F Street 
NE, Washington, DC 20549, Phone: 202 551-4099, Email: 
[email protected].
    RIN: 3235-AN26

SECURITIES AND EXCHANGE COMMISSION (SEC)

Division of Investment Management

Completed Actions

621. Investment Company Names [3235-AM72]

    Legal Authority: 15 U.S.C. 80a-8; 15 U.S.C. 80a-29; 15 U.S.C. 80a-
30; 15 U.S.C. 80a-33; 15 U.S.C. 80a-34; 15 U.S.C. 80a-37; 15 U.S.C. 
80a-58; 15 U.S.C. 80a-63; 15 U.S.C. 80a-18; 15 U.S.C. 77e; 15 U.S.C. 
77f; 15 U.S.C. 77g(a); 15 U.S.C. 77h; 15 U.S.C. 77j; 15 U.S.C. 77s(a); 
15 U.S.C. 78j; 15 U.S.C. 78m; 15 U.S.C. 78o; 15 U.S.C. 78w; 15 U.S.C. 
78ll; . . .
    Abstract: The Commission amended the rule under the Investment 
Company Act of 1940 that addresses certain broad categories of 
investment company names that are likely to mislead investors about an 
investment company's investments and risks. The amendments to this rule 
are designed to increase investor protection by improving, and 
broadening the scope of, the requirement for certain funds to adopt a 
policy to invest at least 80 percent of the value of their assets in 
accordance with the investment focus that the fund's name suggests, 
updating the rule's notice requirements, and establishing recordkeeping 
requirements. The Commission also adopted enhanced prospectus 
disclosure requirements for terminology used in fund names, and 
additional requirements for funds to report information on Form N-PORT 
regarding compliance with the names-related regulatory requirements.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
ANPRM...............................   03/06/20  85 FR 13221
ANPRM Comment Period End............   05/05/20
NPRM................................   06/17/22  87 FR 36594
NPRM Comment Period End.............   08/16/22
NPRM Comment Period Reopened........   10/18/22  87 FR 63016
NPRM Comment Period End.............   11/01/22
Final Action........................   10/11/23  88 FR 70436
Final Action Effective..............   12/11/23
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Michael Kosoff, Division of Investment Management, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549, Phone: 202 551-6754, Email: [email protected].
    RIN: 3235-AM72

622. Private Fund Advisers; Documentation of Registered Investment 
Adviser Compliance Reviews [3235-AN07]

    Legal Authority: 15 U.S.C. 80b-3(d); 15 U.S.C. 80b-6(4); 15 U.S.C. 
80b-11(a); 15 U.S.C. 80b-11(h); 15 U.S.C. 80b-4; 15 U.S.C. 80b-11
    Abstract: The Commission adopted new rules under the Investment 
Advisers Act of 1940. The rules are designed to protect investors who 
directly or indirectly invest in private funds by increasing visibility 
into certain practices involving compensation schemes, sales practices, 
and conflicts of interest through disclosure; establishing requirements 
to address such practices that have the potential to lead to investor 
harm; and restricting practices that are contrary to the public 
interest and the protection of investors. These rules are likewise 
designed to prevent fraud, deception, or manipulation by the investment 
advisers to those funds. The Commission adopted corresponding 
amendments to the Advisers Act books and records rule to facilitate 
compliance with these new rules and assist its examination staff. 
Finally, the Commission adopted amendments to the Advisers Act 
compliance rule, which affect all registered investment advisers, to 
better enable its staff to conduct examinations.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   03/24/22  87 FR 16886
NPRM Comment Period End.............   04/25/22
NPRM Comment Period Reopened........   05/12/22  87 FR 29059
NPRM Comment Period End.............   06/13/22
Final Action........................   09/14/23  88 FR 63206
Final Action Effective..............   11/13/23
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Melissa Harke, Division of Investment Management, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549, Phone: 202 551-6722, Email: [email protected].
    RIN: 3235-AN07

SECURITIES AND EXCHANGE COMMISSION (SEC)

Division of Trading and Markets

Final Rule Stage

623. Amendments to Exchange Act Rule 3b-16 Re Definition of 
``Exchange''; Regulation ATS and Regulation SCI for ATSS That Trade 
U.S. Government Securities, NMS Stocks and Other Securities [3235-AM45]

    Legal Authority: 15 U.S.C. 77g; 15 U.S.C. 78mm; 15. U.S.C. 78w(a); 
15 U.S.C. 78q(h); 15 U.S.C. 77q(a); 15 U.S.C. 78n; 15 U.S.C. 78dd-1; 15 
U.S.C. 78b; 15 U.S.C. 78o(c); 15 U.S.C. 80(a)-23; 15 U.S.C. 78c; 15 
U.S.C. 78o(g); 15 U.S.C. 80a-29; 15 U.S.C. 78j; 15 U.S.C. 78o-4; 15 
U.S.C. 80a-37; 15 U.S.C. 78k-1(c); 15 U.S.C. 78o-5; 15 U.S.C. 77s(a); 
15 U.S.C. 781; 15 U.S.C. 78q(a); 15 U.S.C. 78i(a); 15 U.S.C. 78m; 15 
U.S.C. 78q(b); 15 U.S.C. 78o(b)
    Abstract: The Division is considering recommending that the 
Commission adopt proposed amendments to Exchange Act Rule 3b-16 to 
include systems that offer the use of non-firm trading interest and 
communication

[[Page 9734]]

protocols to bring together buyers and sellers of securities.
    The Division is considering recommending that the Commission adopt 
proposed amendments to Regulation ATS and Regulation SCI for ATSs that 
trade U.S. Government Securities, NMS stock, and other types of 
securities and to require the electronic filing of a modernized version 
of Form ATS and Form ATS-R.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   12/31/20  85 FR 87106
NPRM Comment Period End.............   03/01/21
Second NPRM.........................   03/18/22  87 FR 15496
Second NPRM Comment Period End......   04/18/22
NPRM Comment Period Reopened........   05/12/22  87 FR 29059
NPRM Comment Period Reopened End....   06/13/22
NPRM Comment Period Reopened........   05/05/23  88 FR 29448
NPRM Comment Period Reopened End....   06/13/23
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Tyler Raimo, Division of Trading and Markets, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549, Phone: 202 551-6227, Email: [email protected].
    RIN: 3235-AM45

624. Cybersecurity Risk Management Rules for Broker-Dealers, Clearing 
Agencies, MSBSPS, the MSRB, National Securities Associations, National 
Securities Exchanges, SBSDRS, SBS Dealers, and Transfer Agents [3235-
AN15]

    Legal Authority: 15 U.S.C. 77c; 15 U.S.C. 77f; 15 U.S.C. 77g; 15 
U.S.C. 77h; 15 U.S.C. 77j; 15 U.S.C. 77s(a); 15 U.S.C. 77z-3; 15 U.S.C. 
77sss(a); 15 U.S.C. 78c(b); 15 U.S.C. 78l; 15 U.S.C. 78m; 15 U.S.C. 
78n; 15 U.S.C. 78o(d); 15 U.S.C. 78o-10; 15 U.S.C. 78w(a); 15 U.S.C. 
78ll; 15 U.S.C. 80a-6(c); 15 U.S.C. 80a-8; 15 U.S.C. 80a-29; 15 U.S.C. 
80a-30; 15 U.S.C. 80a-37; 15 U.S.C. 80b-4; 15 U.S.C. 80b-10; 15 U.S.C. 
80b-11; 15 U.S.C. 7201 et seq.; 18 U.S.C. 1350; . . .
    Abstract: The Division is considering recommending that the 
Commission adopt amendments to require that market entities address 
cybersecurity risks, to improve the Commission's ability to obtain 
information about significant cybersecurity incidents impacting market 
entities, and to improve transparency about cybersecurity risk in the 
U.S. securities markets. The Commission proposed a new rule and form 
and amendments to existing recordkeeping rules to require broker-
dealers, clearing agencies, major security-based swap participants, the 
Municipal Securities Rulemaking Board, national securities 
associations, national securities exchanges, security-based swap data 
repositories, security-based swap dealers, and transfer agents to 
address cybersecurity risks through policies and procedures, immediate 
notification to the Commission of the occurrence of a significant 
cybersecurity incident and, as applicable, reporting detailed 
information to the Commission about a significant cybersecurity 
incident, and public disclosures that would improve transparency with 
respect to cybersecurity risks and significant cybersecurity incidents. 
In addition, the Commission proposed amendments to existing clearing 
agency exemption orders to require the retention of records that would 
need to be made under the proposed cybersecurity requirements. Finally, 
the Commission proposed amendments to address the potential 
availability to security-based swap dealers and major security-based 
swap participants of substituted compliance in connection with those 
requirements.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   04/05/23  88 FR 20212
NPRM Comment Period End.............   06/05/23
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Nina Kostyukovskyn, Attorney, Securities and 
Exchange Commission, 100 F Street NE, Washington, DC 20549, Phone: 202 
551-8833, Email: [email protected].
    RIN: 3235-AN15

625. Regulation NMS: Minimum Pricing Increments, Access Fees, and 
Transparency of Better Priced Orders [3235-AN23]

    Legal Authority: 15 U.S.C. 78b; 15 U.S.C. 78c; 15 U.S.C. 78e; 15 
U.S.C. 78f; 15 U.S.C. 78k; 15 U.S.C. 78k-1; 15 U.S.C. 78o; 15 U.S.C. 
78o-3; 15 U.S.C. 78q; 15 U.S.C. 78s; 15 U.S.C. 78w(a); 15 U.S.C. 78mm
    Abstract: The Division is considering recommending that the 
Commission amend certain rules of Regulation National Market System 
(Regulation NMS) under the Securities Exchange Act of 1934, as amended, 
to adopt variable minimum pricing increments for the quoting and 
trading of NMS stocks, reduce the access fee caps, and enhance the 
transparency of better priced orders.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   12/29/22  87 FR 80266
NPRM Comment Period End.............   03/31/23
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Kelly Riley, Senior Special Counsel, Securities and 
Exchange Commission, 100 F Street NE, Washington, DC 20549, Phone: 202 
551-6772, Email: [email protected].
    RIN: 3235-AN23

626. Regulation Best Execution [3235-AN24]

    Legal Authority: 15 U.S.C. 77g; 15 U.S.C. 77q(a); 15 U.S.C. 77s(a); 
15 U.S.C. 78b; 15 U.S.C. 78c(b); 15 U.S.C. 78e; 15 U.S.C. 78g(c)(2); 15 
U.S.C. 78i(a); 15 U.S.C. 78j; 15 U.S.C. 78k-1; 15 U.S.C. 78l; 15 U.S.C. 
78m; 15 U.S.C. 78n; 15 U.S.C. 78o(b); 15 U.S.C. 78o(c); 15 U.S.C. 
78o(g); 15 U.S.C. 78o-1; 15 U.S.C. 78q; 15 U.S.C. 78w(a); 15 U.S.C. 
78x; 15 U.S.C. 78dd-1; 15 U.S.C. 78mm; 15 U.S.C. 80a-23; 15 U.S.C. 80a-
29; 15 U.S.C. 80a-30; . . .
    Abstract: The Division is considering recommending that the 
Commission adopt new rules under the Securities Exchange Act of 1934 
relating to a broker-dealer's duty of best execution. Proposed 
Regulation Best Execution would enhance the existing regulatory 
framework concerning the duty of best execution by requiring detailed 
policies and procedures for all broker-dealers and more robust policies 
and procedures for broker-dealers engaging in certain conflicted 
transactions with retail customers, as well as related review and 
documentation requirements.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   01/27/23  88 FR 5440
NPRM Comment Period End.............   03/31/23
Final Action........................   04/00/24
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: David R. Dimitrious, Securities and Exchange 
Commission, 100 F Street NE, Washington, DC 20549,

[[Page 9735]]

Phone: 202 551-5131, Email: [email protected].
    RIN: 3235-AN24

SECURITIES AND EXCHANGE COMMISSION (SEC)

Division of Trading and Markets

Completed Actions

627. Exemption for Certain Exchange Members [3235-AN17]

    Legal Authority: 15 U.S.C. 78c; 15 U.S.C. 78o; 15 U.S.C. 78o-1; 15 
U.S.C. 78q; 15 U.S.C. 78s; 15 U.S.C. 78w; 15 U.S.C. 78mm; . . .
    Abstract: The Commission adopted amendments to a rule under the 
Securities Exchange Act of 1934 that exempts certain Commission-
registered brokers or dealers from membership in a registered national 
securities association (``Association''). The amendments replace rule 
provisions that provide an exemption for proprietary trading with 
narrower exemptions from Association membership for any registered 
broker or dealer that is a member of a national securities exchange, 
carries no customer accounts, and effects transactions in securities 
otherwise than on a national securities exchange of which it is a 
member. The amendments create exemptions for such a registered broker 
or dealer that effects securities transactions otherwise than on an 
exchange of which it is a member that result solely from orders that 
are routed by a national securities exchange of which it is a member to 
comply with order protection regulatory requirements, or are solely for 
the purpose of executing the stock leg of a stock-option order.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   08/12/22  87 FR 49930
NPRM Comment Period End.............   09/27/22
Final Action........................   09/07/23  88 FR 61850
Final Action Effective..............   11/06/23
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Michael Bradley, Division of Trading and Markets, 
Securities and Exchange Commission, 100 F Street NE, Washington, DC 
20549, Phone: 202 551-5594, Email: [email protected].
    RIN: 3235-AN17

[FR Doc. 2024-00469 Filed 2-8-24; 8:45 am]
BILLING CODE 8011-01-P