The purpose and effect is to amend the existing rule to incorporate by reference the current versions of general industry standards and to incorporate one new material by reference, Regulation S-P § 248.30 (17 C.F.R. §248.30) (4-1-18 edition). ...

 

DEPARTMENT OF FINANCIAL SERVICES

Securities

RULE NO.:RULE TITLE:

69W-200.002General Industry Standards Incorporated by Reference

PURPOSE AND EFFECT: The purpose and effect is to amend the existing rule to incorporate by reference the current versions of general industry standards and to incorporate one new material by reference, Regulation S-P § 248.30 (17 C.F.R. §248.30) (4-1-18 edition). Brokers, dealers, and federally covered advisers are already required to comply with Regulation S-P §248.30, which requires the adoption of written policies and procedures that address administrative, technical, and physical safeguards for the protection of customer records and information. Additionally, the proposed amendment reorders the rule and deletes duplicative provisions to improve organization.

SUMMARY: The proposed amended rule incorporates by reference the current versions of the general industry standards and adds subsection (37) to incorporate Regulation S-P § 248.30 (17 C.F.R. §248.30) (4-1-18 edition). Additionally, the proposed amendment reorders the rule and deletes duplicative provisions to improve organization.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Agency expressly relies on an analysis of potential economic impact conducted by persons with subject matter knowledge of these rules.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 517.03(1), 517.1215(2), 517.1217 FS.

LAW IMPLEMENTED: 517.081, 517.12(4), 517.1215, 517.1217, 517.161(1) FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Ryann White, Division of Securities [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

Substantial rewording of Rule 69W-200.002 follows. See Florida Administrative Code for present text.

69W-200.002 General Industry Standards Incorporated by Reference.

The following general industry standards as expressed in the statutes, rules and regulations of the various federal and self-regulatory agencies and regulatory associations and referenced in division 69W, F.A.C., are hereby incorporated by reference and adopted by this rule. The material incorporated by reference in this rule may also be obtained from the Florida Office of Financial Regulation (Office), Division of Securities’ website at http://www.flofr.com/sitePages/MaterialsDS.htm, except where noted for copyright restrictions. Materials subject to copyright restrictions may be inspected and examined by contacting the Florida Office of Financial Regulation, Division of Securities, at 200 E. Gaines Street, Tallahassee, Florida 32399, [phone].

(1) Section 4f(a) of the Commodity Exchange Act (7 U.S.C. §6f) (2012), accessible at

http://www.flrules.org/Gateway/reference.asp?No=Ref-04566.

(2) Sections 2, 3, 4, 5, 6, 7, 8, and 10(a) of the Securities Act of 1933, (15 U.S.C. §§77b, 77c, 77d, 77e, 77f, 77g, 77h, and  77j) (6-4-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(3) Securities Exchange Act of 1934 (15 U.S.C. §§78a through 78qq) (4-3-19), accessible at

http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(4) Investment Company Act of 1940 (15 U.S.C. §80a-1 through 80a-64) (4-3-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(5) The Investment Advisers Act of 1940 (15 U.S.C. §80b-1 through 80b-21) (3-11-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(6) Section 422 of the Internal Revenue Code (26 U.S.C. §422) (4-2-19), accessible at

http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(7) Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. §501(c)(3)) (3-30-10), accessible at

http://www.flrules.org/Gateway/reference.asp?No=Ref-04579.

(8) Section 642(c)(5) of the Internal Revenue Code of 1954 (26 U.S.C. §642(c)(5)) (1-23-02), accessible at

http://www.flrules.org/Gateway/reference.asp?No=Ref-04527.

(9) Sections 856, 857 and 858 of the Internal Revenue Code of 1954 (26 U.S.C. §§856 through 858) (3-11-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(10) Employee Retirement Income Security Act of 1974 (Pub.L. 93-406) (4-7-14), accessible at

http://www.flrules.org/Gateway/reference.asp?No=Ref-04578.

(11) National Securities Markets Improvement Act of 1996 (Pub. L. 104-290) (10-11-96), accessible at

http://www.flrules.org/Gateway/reference.asp?No=Ref-04565.

(12) Regulation T (12 C.F.R. §§220.1 through 220.12, 220.101, 220.103, 220.105, 220.108, 220.110, 220.111, 220.113, 220.117, 220.118, 220.119, 220.121, 220.122, 220.123, 220.124, 220.127, 220.128, 220.131, 220.132); and 12 C.F.R. §221.125 of Regulation U (1-1-13 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04544.

(13) Regulation S-X (17 C.F.R. Part 210) (4-1-18 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(14) SEC Rules 134, 134a, 135a, 144, 156, 419, 481 and 482, (17 C.F.R. §§230.134, 230.134a, 230.135a, 230.144, 230.156, 230.419, 230.481 and 230.482) (4-1-13 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04557.

(15) SEC Rule 144A (17 C.F.R. §230.144A(a)) (9-23-13), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04521.

(16) Regulation A (17 C.F.R. §§230.251 through 230.263) (4-1-18 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(17) SEC Rule 415 (17 C.F.R. §230.415) (4-1-18 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(18) SEC Rule 501(a) of Regulation D (17 C.F.R. §230.501(a)) (4-1-18 Edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(19) SEC Rule 701 (17 C.F.R. §230.701) (4-1-13 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04530.

(20) Regulation S (17 C.F.R. §§230.901 through 230.905) (4-1-13 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04528.

(21) SEC Rule 8c-1, (17 C.F.R. §240.8c-1) (4-1-14 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04545.

(22) SEC Rule 9b-1 (17 C.F.R. §240.9b-1) (4-1-14 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04537.

(23) SEC Rules 10b-1, 10b-3, 10b-5, 10b5-1, 10b5-2, 10b-9, 10b-10, 10b-16, 10b-17, 10b-18, and 10b-21 (17 C.F.R. §§240.10b-1, 240.10b-3, 240.10b-5, 240.10b5-1, 240.10b5-2, 240.10b-9, 240.10b-10, 240.10b-16, 240.10b-17, 240.10b-18, and 240.10b-21) (4-1-14 edition), accessible at

http://www.flrules.org/Gateway/reference.asp?No=Ref-04538.

(24) SEC Rule 15a-6(b)(4)(i) (17 C.F.R. §240.15a-6) (4-1-14 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04580.

(25) SEC Rules 15c1-1 through 15c1-3 and 15c1-5 through 15c1-9 (17 C.F.R. §§240.15c1-1 through 240.15c1-3 and 240.15c1-5 through 240.15c1-9) (4-1-14 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04539.

(26) SEC Rules 15c2-1, 15c2-4, 15c2-5, 15c2-7, 15c2-8, 15c2-11, and 15c2-12 (17 C.F.R. §§240.15c2-1, 240.15c2-4, 240.15c2-5, 240.15c2-7, 240.15c2-8, 240.15c2-11, and 240.15c2-12) (4-1-18 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(27) SEC Rule 15c3-1 and appendices (17 C.F.R. §240.15c3-1 (7-7-14); 17 C.F.R. §240.15c3-1a (7-7-14); 17 C.F.R. §240.15c3-1b (8-9-84); 17 C.F.R. §240.15c3-1c (12-2-92); 17 C.F.R. §240.15c3-1d (6-5-08); 17 C.F.R. §240.15c3-1e (7-7-14); 17 C.F.R. §240.15c3-1f (7-7-14); 17 C.F.R. §240.15c3-1g (7-7-14)), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04571.

(28) SEC Rule 15c3-3 and Exhibit A (17 C.F.R. §240.15c3-3 (4-1-14 edition) and 240.15c3-3a (7-7-14)), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04573.

(29) SEC Rules 15g-1 through 15g-6, 15g-8, and 15g-9 (17 C.F.R. §§240.15g-1 through 240.15g-6, 240.15g-8 and 240.15g-9) (4-1-18 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(30) SEC Rules 17a-3 and 17a-4 (17 C.F.R. §§240.17a-3 and 240.17a-4) (4-1-14 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04568.

(31) SEC Rules 17a-5 (17 C.F.R. §240.17a-5) (6-1-14) and 17a-10 (17 C.F.R. §240.17a-10) (12-9-81), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04523.

(32) SEC Rule 17a-11 (17 C.F.R. §240.17a-11) (6-1-14), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04572.

(33) SEC Rule 17f-2 (17 C.F.R. §240.17f-2) (4-1-13 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04533.

(34) Regulation M (17 C.F.R. §242.100 through 242.105) (4-1-14 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04542.

(35) Regulation SHO (17 C.F.R. §§242.200-242.203) (4-1-14 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04559.

(36) SEC Rule 601 (17 C.F.R. §242.601) (4-1-14 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-04543.

(37) Regulation S-P §248.30 (17 C.F.R. §248.30) (4-1-18 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(38) SEC Rules 204-1, 204-2, 204-3, 205-1, 205-2, 205-3, 206(3)-1, 206(3)-2, 206(4)-1, 206(4)-3 (17 C.F.R. §275.204-1; 17 C.F.R. §275.204-2; 17 C.F.R. §275.204-3; 17 C.F.R. §275.205-1; 17 C.F.R. §275.205-2; 17 C.F.R. §275.205-3; 17 C.F.R. §275.206(3)-1; 17 C.F.R. §275.206(3)-2; 17 C.F.R. §275.206(4)-1; 17 C.F.R. §275.206(4)-3) (4-1-18 edition), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(39) Article 6, Rule 11 of NYSE Chicago Inc. (existing as of 3-10-19), available for inspection at the Office due to copyright restrictions.

(40) FASB Rule ASC 946-210-50 (existing as of 2-3-15), available for inspection at the Office due to copyright restrictions.

(41) FINRA Rule 1240 (existing as of 2-22-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(42) FINRA Rule 2000 Series (2010 through 2370) (existing as of 3-8-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(43) FINRA Rule 3000 Series (3110 through 3310) (existing as of 3-8-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(44) FINRA Rule 4000 Series (4110 through 4590) (existing as of 3-8-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(45) FINRA Rule 5000 Series (5110 through 5350) (existing as of 3-8-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(46) FINRA Rule 6000 Series (6110 through 6898) (existing as of 3-8-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(47) FINRA Rule 7000 Series (7110 through 7730) (existing as of 3-8-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(48) FINRA Rule 11000 Series (11100 through 11900) (existing as of 3-8-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(49) NASD Conduct Rules 2340 and 2510 (existing as of 3-8-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

       (50) NASD Conduct Rules 3140, 3150, and IM-3150 (existing as of 3-8-19), accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX.

(51) MSRB Definitional Rules D-1 to D-15, and General Rules G-1 to G-48 (existing as of 10-1-18), available for inspection at the Office due to copyright restrictions.

(52) NYSE Rule 341A (existing as of 3-11-19), available for inspection at the Office due to copyright restrictions.

(53) NYSE Rule 345A (existing as of 3-10-19), available for inspection at the Office due to copyright restrictions.

(54) NYSE Rules 412 and 435 (existing as of 2-21-19), available for inspection at the Office due to copyright restrictions.

Rulemaking Authority 517.03(1), 517.1215(2), 517.1217 FS. Law Implemented 517.081, 517.12(4), 517.1215, 517.1217, 517.161(1) FS. History–New 9-22-14, Amended 5-6-15,               .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Alisa G. Goldberg, Acting Director, Division of Securities

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: July 25, 2019

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: June 20, 2019