P. Compliance Date
The Commission is providing a compliance date that is nine months after the effective
date of the amended Rule, except for the compliance date for paragraph (b)(5)(i)(M) of the
amended Rule. The compliance date for paragraph (b)(5)(i)(M) of the amended Rule is two
years after the effective date of the amended Rule.535
After considering the comments received regarding the transition period for compliance
with the amended Rule’s provisions,536 the Commission believes that these compliance dates
will provide sufficient time for broker-dealers to prepare to comply with the amended Rule,
including by creating or updating any necessary systems or internal measures, such as training
modules, and to develop and update any necessary policies and procedures, as appropriate, to
achieve compliance with the amended Rule. The Commission further believes that these
compliance dates provide sufficient time for qualified IDQSs and registered national securities
associations to implement technological or other changes that they determine to make in light of
the amended Rule.
534 See, e.g., Press Release, SEC Charges Eight for Roles in Widespread Pump-and-Dump Scheme Involving
California-Based Microcap Company (Sept. 18, 2014), https://www.sec.gov/news/press-release/2014-202.
535 In this regard, the compliance date for the requirement in the piggyback exception that a catch-all issuer’s
information that is specified in paragraph (b)(5)(i)(M) must be current and publicly available is two years after the
effective date of the amended Rule. This compliance date is designed to provide a sufficient window during which
such current information can be prepared and made publicly available.
536 FINRA Letter (requesting nine months for covered entities to comply with the provisions of the amended Rule);
Jason Hirschman (Oct. 8, 2019) (stating that there should be an “extended transition period” for the amended Rule).
176
The Commission recognizes that there are market participants who are concerned about
the loss of a quoted market for certain securities as a result of the amended Rule and that such
market participants may wish to seek relief from the provisions of the amended Rule. The
Commission encourages such persons to submit relief requests expeditiously during the ninemonth transition period. The Commission notes, however, that it will consider relief requests at
any time, including after the nine-month transition period.
On and after the nine-month transition period, broker-dealers that publish or submit
quotations in a quotation medium, qualified IDQSs that make known to others certain brokerdealer quotations and make certain publicly available determinations, and registered national
securities associations that make certain publicly available determinations would be required to
comply with the amended Rule when they perform those activities. The Commission staff
intends to offer assistance and support to covered entities during the transition period and
thereafter, with the aim of helping to ensure that the investor protections and other benefits of the
amended Rule are implemented in an efficient and effective manner.
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