Unknown. Final rule

4,706 words·~21 min read·/register/2015/06/10/2015-14159·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2015-06-10.xml --- 80 111 Wednesday, June 10, 2015 Contents Agricultural Marketing Agricultural Marketing Service PROPOSED RULES Electronic Submission of the Import Request of Shell Eggs, 32867-32868 2015-14180 Agriculture Agriculture Department See Agricultural Marketing Service See Farm Service Agency See Forest Service Consumer Financial Protection Bureau of Consumer Financial Protection NOTICES Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies, 33016-33025 2015-14126 Census Bureau Census Bureau NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: 2015-2017 Business Research and Development and Innovation Surveys, 32932-32933 2015-14166 Centers Disease Centers for Disease Control and Prevention NOTICES Meetings: Disease, Disability, and Injury Prevention and Control Special Emphasis Panel, 32954 2015-14087 Children Children and Families Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Assets for Independence Program Evaluation, 32957-32958 2015-14117 Low Income Home Energy Assistance Program Carryover and Reallotment Report, 32959-32960 2015-14149 National Youth in Transition Database and Youth Outcome Survey, 32956-32957 2015-14140 Low-Income Home Energy Assistance Programs:

State Median Income Estimates for Federal Fiscal Year 2016, 32958-32959 2015-14187 Privacy Act; Computer Matching Agreement, 32954-32955 2015-14200 Privacy Act; Systems of Records, 32955-32956 2015-14199 Commerce Commerce Department See Census Bureau See Economic Analysis Bureau See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement List;

Additions and Deletions, 32943 2015-14118 Commodity Futures Commodity Futures Trading Commission RULES Commission Proceedings: Suspension or Disbarment from Appearance and Practice, 32855-32857 2015-14159 Community Living Administration Community Living Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: State Developmental Disabilities Council; Annual Program Performance Report, 32960-32961 2015-14051 Comptroller Comptroller of the Currency NOTICES Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies, 33016-33025 2015-14126 Defense Department Defense Department See Navy Department PROPOSED RULES Federal Acquisition Regulation:

Small Business Subcontracting Improvements, 32909-32922 2015-14055 Economic Analysis Bureau Economic Analysis Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Direct Investment Surveys -- Annual Survey of Foreign Direct Investment in the United States, 32933-32934 2015-14188 Direct Investment Surveys -- Annual Survey of U.S. Direct Investment Abroad, 32934-32935 2015-14148 Education Department Education Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Borrower Defenses against Loan Repayment, 32944-32945 2015-14184 Talent Search Annual Performance Report, 32944 2015-14165 Energy Department Energy Department See Federal Energy Regulatory Commission PROPOSED RULES Energy Conservation Program: Energy Conservation Standards for Residential Conventional Ovens, 33030-33098 2015-13764 Environmental Protection Environmental Protection Agency PROPOSED RULES Air Quality State Implementation Plans;

Approvals and Promulgations: Kansas—Regional Haze Revision and 2014 Five-Year Progress Report, 32874-32879 2015-13943 Washington—Interstate Transport of Fine Particulate Matter, 32870-32874 2015-14225 Renewable Fuel Standard Program: Standards for 2014, 2015, and 2016 and Biomass-based Diesel Volume for 2017, 33100-33153 2015-13956 Significant New Use Rule on Certain Chemical Substances, 32879-32885 2015-13941 NOTICES Data Transfers: Eastern Research Group, Inc., 32946-32947 2015-14222 Meetings:

National Environmental Education Advisory Council, 32949 2015-14226 Pesticide Product Registrations: Amendments to Terminate Uses in Certain Pesticide Registrations, 32951 Applications for New Active Ingredients, 32951 2015-14091 Pesticide Registrations: Diclofop-methyl Product Cancellation Order, 32949-32950 2015-14220 Public Water System Supervision Program Revision for the State of Arkansas, 32950-32951 2015-14227 Export Import Export-Import Bank NOTICES Applications for Long-Term Loans or Financial Guarantees in Excess of $100 Million, 32951-32952 2015-14152 Farm Service Farm Service Agency NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Customer Feedback on the Farm Service Agency Service Delivery, 32929-32930 2015-14183 Federal Communications Federal Communications Commission RULES Relay Services for Deaf-Blind Individuals, 32857-32859 2015-13717 PROPOSED RULES Relay Services for Deaf-Blind Individuals, 32885-32909 2015-13718 Federal Deposit Federal Deposit Insurance Corporation NOTICES Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies, 33016-33025 2015-14126 Terminations of Receiverships:

Piedmont Community Bank, Gray, GA, 32952 2015-14105 Federal Energy Federal Energy Regulatory Commission NOTICES Combined Filings, 32945-32946 2015-14160 Exemption Transfers: Chasm Hydro Partnership; Ampersand Chasm Falls Hydro, LLC, 32945 2015-14107 Federal Maritime Federal Maritime Commission NOTICES Agreements Filed, 32952 2015-14204 Federal Mine Federal Mine Safety and Health Review Commission NOTICES Meetings; Sunshine Act, 32953 2015-14309 Federal Motor Federal Motor Carrier Safety Administration RULES Rulemaking Procedures:

Treatment of Confidential Business Information, 32861-32865 2015-14181 NOTICES Qualification of Drivers; Exemption Applications: Vision, 33007-33013 2015-14167 2015-14168 2015-14173 2015-14179 Federal Railroad Federal Railroad Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33013-33014 2015-14161 Federal Reserve Federal Reserve System NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32953-32954 2015-14113 Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies, 33016-33025 2015-14126 Fish Fish and Wildlife Service PROPOSED RULES Endangered and Threatened Wildlife and Plants:

Designating Critical Habitat on Molokai, Lanai, Maui, and Kahoolawe for 135 Species, 32922-32928 2015-13850 Food and Drug Food and Drug Administration PROPOSED RULES Homeopathic Product Regulation: Evaluating the Food and Drug Administration's Regulatory Framework After a Quarter-Century, 32868-32869 2015-14143 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Comparative Price Information in Direct-to-Consumer and Professional Prescription Drug Advertisements, 32962-32963 2015-14122 Establishment of a Tobacco User Panel, 32963-32966 2015-14125 Determinations that Products Were Withdrawn from Sale for Reasons of Safety or Effectiveness:

Ondansetron (Ondansetron Hydrochloride) Injection, USP in PL 2408 Plastic Container, 32 Milligrams in 50 Milliliters, 32962 2015-14145 Drug Application Withdrawals: Baxter Healthcare Corporation et al., 32966-32967 2015-14144 Guidance: Duchenne Muscular Dystrophy and Related Dystrophinopathies - Developing Drugs for Treatment, 32961 2015-14100 Identification of Alternative In Vitro Bioequivalence Pathways which can Reliably Ensure in Vivo Bioequivalence of Product Performance and Quality of Non-Systemically Absorbed Drug Products for Animals, 32963 2015-14101 Foreign Assets Foreign Assets Control Office NOTICES Blocking or Unblocking of Persons and Properties, 33025-33027 2015-14215 2015-14216 Forest Forest Service NOTICES Charter Renewals;

Requests for Nominations: Recreation Resource Advisory Committees, 32930-32931 2015-14147 Meetings: National Advisory Committee for Implementation of the National Forest System Land Management Planning Rule, 32931-32932 2015-14146 General Services General Services Administration PROPOSED RULES Federal Acquisition Regulation: Small Business Subcontracting Improvements, 32909-32922 2015-14055 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Children and Families Administration See Community Living Administration See Food and Drug Administration See National Institutes of Health Homeland Homeland Security Department See Transportation Security Administration See U.S.

Customs and Border Protection Housing Housing and Urban Development Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Qualitative Feedback on Proposed New HUD Services or Products, 32974-32975 2015-14192 Indian Affairs Indian Affairs Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Indian Reservation Roads, 32976-32977 2015-14154 Student Transportation Form, 32975-32976 2015-14153 Industry Industry and Security Bureau NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Chemical Weapons Convention Provisions of the Export Administration Regulations, 32935-32936 2015-14164 Denials of Export Privileges: Luis Armando Collins-Avila, 32936-32937 2015-14177 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Land Management Bureau See National Park Service International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:

Certain Steel Wire Garment Hangers from the Socialist Republic of Vietnam, 32937 2015-14208 Circular Welded Non-Alloy Steel Pipe from the Republic of Korea, 32937-32939 2015-14214 International Trade Com International Trade Commission NOTICES Meetings; Sunshine Act, 32978 2015-14304 Justice Department Justice Department NOTICES Proposed Settlement Agreements under CERCLA, 32978-32979 2015-14102 Land Land Management Bureau NOTICES Plats of Survey: Oregon/Washington, 32977 2015-14171 NASA National Aeronautics and Space Administration PROPOSED RULES Federal Acquisition Regulation:

Small Business Subcontracting Improvements, 32909-32922 2015-14055 National Credit National Credit Union Administration NOTICES Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies, 33016-33025 2015-14126 National Institute National Institutes of Health NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Information Program on Clinical Trials—Maintaining a Registry and Results Databank, 32968-32969 2015-14169 Government-Owned Inventions;

Availability for Licensing, 32969-32971 2015-14095 Meetings: Center for Scientific Review, 32967-32969 2015-14170 2015-14185 2015-14186 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries of the Exclusive Economic Zone Off Alaska: Kamchatka Flounder in the Bering Sea and Aleutian Islands Management Area, 32866 2015-14155 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32939-32941 2015-14123 2015-14124 Meetings:

Atlantic Shark Identification Workshops and Protected Species Safe Handling, Release, and Identification Workshops, 32941-32942 2015-14158 Permits: Marine Mammals; File No. 19108; Correction, 32941 2015-14141 National Park National Park Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: National Park Service Lost and Found Report, 32977-32978 2015-14175 Navy Navy Department NOTICES Environmental Impact Statements; Availability, etc.:

Disposal and Reuse of Naval Air Station, Joint Reserve Base Willow Grove, PA, 32943-32944 2015-14172 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Combined Licenses: Virgil C. Summer Nuclear Station, Units 2 and 3; South Carolina Electric and Gas Co., 32981-32983 2015-14206 Environmental Assessments; Availability, etc.: FirstEnergy Nuclear Operating Co. Beaver Valley Power Station, Unit Nos. 1 and 2, 32989-32991 2015-14138 License Amendment Applications: Exelon Generation Company, LLC, Peach Bottom Atomic Power Station, Unit 3, 32991-32994 2015-14139 Meetings:

Advisory Committee on Reactor Safeguards Subcommittee on Future Plant Designs, 32979 2015-14203 Advisory Committee on Reactor Safeguards Subcommittee on Power Uprates, 32983 2015-14210 Advisory Committee on Reactor Safeguards Subcommittee on Radiation Protection and Nuclear Materials, 32979 2015-14205 Non-Manufacturing and Distribution Service Provider Orders, 32983-32989 2015-14129 Petitions; Denials: Omaha Public Power District, Fort Calhoun Station, Unit 1, 32980-32981 2015-14207 Omaha Public Power District, Nebraska Public Power District, 32980 2015-14209 Personnel Personnel Management Office RULES Federal Employees Health Benefits Program:

Rate Setting for Community-Rated Plans, 32859-32861 2015-14219 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Federal Annuitant Benefits Survey, 32995 2015-14221 Health Benefits Election Form, 32994 2015-14223 Postal Service Postal Service NOTICES Meetings; Sunshine Act, 32995 2015-14240 Securities Securities and Exchange Commission NOTICES Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies, 33016-33025 2015-14126 Self-Regulatory Organizations;

Proposed Rule Changes: BATS Exchange, Inc., 33001-33003 2015-14134 BATS Y-Exchange, Inc., 32995-32997 2015-14135 C2 Options Exchange, Inc., 32997-33001 2015-14133 Chicago Board Options Exchange, Inc., 33003-33005 2015-14136 International Securities Exchange, LLC, 33001 2015-14131 New York Stock Exchange LLC, 33005-33006 2015-14132 State Department State Department PROPOSED RULES Intercountry Adoptions: Regulatory Change to Prevent Accreditation and Approval Renewal Requests from Coming Due at the Same Time, 32869-32870 2015-14066 NOTICES Culturally Significant Objects Imported for Exhibition:

Out of the Box—The Rise of Sneaker Culture, 33006-33007 2015-14196 Determination by the Secretary of State Relating to Iran Sanctions, 33006 2015-14195 Meetings: U.S. National Commission for UNESCO; Teleconferences, 33007 2015-14191 Transportation Department Transportation Department See Federal Motor Carrier Safety Administration See Federal Railroad Administration See Transportation Statistics Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33014 2015-13990 Security Transportation Security Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Claims Management Branch Program, 32973-32974 2015-14201 Transportation Statistics Transportation Statistics Bureau NOTICES Confidential Business Information Reporting Requirements, 33015-33016 2015-14182 Treasury Treasury Department See Comptroller of the Currency See Foreign Assets Control Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33027 2015-14120 Customs U.S. Customs and Border Protection NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Cargo Manifest/Declaration, Stow Plan, Container Status Messages and Importer Security Filing, 32971-32973 2015-14189 Veteran Affairs Veterans Affairs Department NOTICES Requests for Nominations: Advisory Committee on Structural Safety of Department of Veterans Affairs Facilities, 33027-33028 2015-14142 Separate Parts In This Issue Part II Energy Department, 33030-33098 2015-13764 Part III Environmental Protection Agency, 33100-33153 2015-13956 Reader Aids Consult the Reader Aids section at the end of this page for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 80 111 Wednesday, June 10, 2015 Rules and Regulations COMMODITY FUTURES TRADING COMMISSION 17 CFR Part 14 RIN 3038-AE21 Proceedings Before the Commodity Futures Trading Commission; Rules Relating to Suspension or Disbarment From Appearance and Practice AGENCY:

Commodity Futures Trading Commission. ACTION: Final rule. SUMMARY: The Commodity Futures Trading Commission (“Commission” or “CFTC”) amends its regulations to clarify the standard used for determining when an accountant has engaged in “unethical or improper professional conduct”—grounds for a temporary or permanent denial of the privilege to practice before the Commission. The amendment enhances transparency by codifying the standard used in Commission adjudications of accountant conduct under the Commission's regulations.

DATES: This rule is effective July 10, 2015. FOR FURTHER INFORMATION CONTACT: Jason Gizzarelli, Director, Office of Proceedings,

(202)418-5395, *jgizzarelli@cftc.gov,* Office of the Executive Director, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581. SUPPLEMENTARY INFORMATION: I. Background Part 14 of the Commission's regulations addresses the circumstances under which the Commission may deny attorneys and accountants, temporarily or permanently, the privilege of practicing their respective professions before it. Rule 14.8 specifically provides that the Commission, after notice and opportunity for a hearing and an adverse finding by a preponderance of the evidence, may bar an attorney or accountant found:

(a)Not to possess the requisite qualifications to represent others; or

(b)to be lacking in character or integrity; or

(c)to have engaged in unethical or improper professional conduct either in the course of an adjudicatory, investigative, rulemaking, or other proceeding before the Commission or otherwise. 1 1 17 CFR 14.8. Prior to this amendment, rule 14.8 did not further articulate what constitutes “unethical or improper professional conduct” by an accountant under paragraph (c). However, since 1996, the Commission has filed six administrative actions alleging violations of rule 14.8 against accountants appearing and practicing before it. 2 In each case, the Commission accepted a settlement banning the defendants from practicing before it for a specified time period. 2 *In re Deloitte & Touche and Thomas Lux,* CFTC Docket No. 96-10, 1996 WL 547883 (CFTC September 25, 1996); *In re Sherald Griffin, CPA & Donna Laubscher, CPA,* CFTC Docket No. 98-12, 1998 WL 161709 (CFTC April 8, 1998); *In re Anatoly Osadchy, CPA,* CFTC Docket No. 99-2, 1998 WL 754637 (CFTC October 29, 1998); *In re G. Victor Johnson and Altschuler, Melvoin & Glasser, LLP,* CFTC Docket No. 04-29, 2005 WL 1398672 (CFTC June 13, 2005); *In re G. Victor Johnson II, McGladrey & Pullen, LLP and Altshuler, Melvoin & Glasser, LLP,* CFTC Docket No. 11-01, 2010 WL 3903905 (CFTC October 4 2010; *In re Jeannie Veraja-Snelling,* CFTC Docket No. 13-29, 2013 WL 4647784 (CFTC filed Aug. 26, 2013). Section 201.102(e) of the Securities and Exchange Commission's (“SEC's”) regulations (“SEC rule of practice 102(e)”) 3 addresses the standard of conduct for accountants practicing before that commission. Parallel to Commission rule 14.8, SEC rule of practice 102(e)(1)(ii) sets out “unethical or improper professional conduct” as grounds for accountant suspension and disbarment from practice before the SEC. As amended in 1998, 4 the SEC regulation further provides that with respect to persons licensed to practice as accountants, “improper professional conduct” under SEC rule of practice 102(e)(1)(ii) means intentional or knowing conduct, including reckless conduct, that results in a violation of applicable professional standards; or either of the following two types of negligent conduct: A single instance of highly unreasonable conduct that results in a violation of applicable professional standards in circumstances in which an accountant knows, or should know, that heightened scrutiny is warranted; or repeated instances of unreasonable conduct, each resulting in a violation of applicable professional standards, that indicate a lack of competence to practice before the Commission. 5 3 17 CFR 201.102(e). 4 *See* Amendment to Rule 102(e) of the Commission's Rule of Practice, 63 FR 57164 (Oct. 26, 1998). 5 17 CFR 201.102(e)(1)(iv). The standard for accountant “improper professional conduct” expressed in SEC rule of practice 102(e)(1) is consistent with that applied by the Commission in its earlier-referenced adjudications of accountant conduct under rule 14.8. II. The Proposed Amendment to Rule 14.8; Consideration of Comments On October 23, 2014, the Commission published a proposed amendment to rule 14.8 (“the Proposal”) for public comment. 6 As proposed, the amendment sought to add language to rule 14.8(c) to clarify the meaning of accountant “improper professional conduct.” As explained in the Proposal, the proposed amendment mirrors in substance the standard prescribed in SEC rule of practice 102(e)(1)(iv), and comports with the standard historically applied by the Commission in adjudications of accountant conduct. 6 Proceedings before the Commodity Futures Trading Commission; Rules Relating to Suspension or Disbarment from Appearance and Practice, 79 FR 63343 (Oct. 23, 2014). The Commission received three comments on the Proposal. 7 Each commenter supported the amended rule as proposed without raising substantive issues. For example Deloitte LLP stated that it “support[s] the CFTC's decision to seek regulatory consistency by adopting a definition that is identical to the definition provided under Rule 102(e) of the Rules of Practice of the U.S. Securities and Exchange Commission.” 8 Ernst & Young LLP wrote that “[a]dopting a rule that is modeled after SEC Rule 102(e), which would be the case with respect to the proposed amendment, strikes us as a reasonable approach given the lengthy history and background of the SEC's rule.” 9 A third commenter wrote that the proposed rule “requires the accountant to act with integrity and perform its duties with competence and care and will promote market integrity, ensure regulators consistency (with the SEC), enhance customer protection and improve risk management.” 10 Accordingly, the Commission is adopting the amendment to rule 14.8, as proposed. 7 The three commenters on the proposed rule amendment were Ernst & Young LLP, Deloitte LLP and Chris Barnard. 8 Deloitte LLP Comment Letter at 1 (November 24, 2014). 9 Ernst & Young LLP Comment Letter at 1 (November 24, 2014). 10 Chris Barnard Comment Letter at 2 (November 4, 2014). III. Role of and Standards Applied to Accountants Accountants auditing Commission registrants perform a critical gatekeeper role in protecting the financial integrity of the derivatives markets and the investing public. Accountants appearing before the Commission in this capacity must understand the business operations of their clients and conduct financial audits both in accordance with applicable professional principles and standards and in satisfaction of all the requirements of the Commission's regulations. 11 11 The current professional principles and standards applicable to accountants appearing before the Commission include Generally Accepted Accounting Principles, Generally Accepted Auditing Standards, International Accounting Standards, the Code of Conduct of the American Institute of Certified Public Accountants, and the rules and standards of the Public Company Accounting Oversight Board. Rule 14.8 can be an effective remedial tool to ensure that the accountants appearing before the Commission are competent to do so and do not pose a threat to the Commission's registration and examination functions. Accountants who engage in intentional or knowing misconduct, which includes reckless conduct, clearly pose such a threat, as do accountants who engage in certain specified types of negligent conduct. The Commission believes that a single, highly unreasonable error in judgment or other act made in circumstances warranting heightened scrutiny conclusively demonstrates a lack of competence to practice before the Commission. Repeated unreasonable conduct may also indicate a lack of competence. Therefore, if the Commission finds that an accountant acted egregiously in a single instance or unreasonably in more than one instance and that this conduct indicates a lack of competence, then that accountant engaged in improper professional conduct under rule 14.8's standard. The amendment to rule 14.8 is not meant, however, to encompass every professional misstep. A single judgment error, for example, even if unreasonable when made, may not indicate a lack of competence to practice before the Commission sufficient to require Commission action. The amendment seeks to provide greater clarity with respect to the Commission's standard for assessing accountant conduct, as developed to-date through administrative adjudications. At the same time, however, like the SEC regulation after which the amendment is modeled, the amendment elaborates standards that are to be applied in adjudications on a case-by-case basis, a method that promotes equitable application of the standards as warranted upon full consideration of the facts of each case. Similarly, as the SEC noted when it amended its rule of practice in 1998, 12 the Commission does not seek to use rule 14.8 to establish new standards for the accounting profession. The rule itself imposes no new professional standards on accountants. Accountants who appear or practice before the Commission are already subject to professional standards, and rule 14.8(c) is intended to apply in a manner consistent with those existing standards. 12 *See* 63 FR 33305 (June 18, 1998); 63 FR 57164 (Oct. 26, 1998). IV. Related Matters A. Regulatory Flexibility Act The Regulatory Flexibility Act requires agencies to consider whether the rules they may adopt will have a significant economic effect on a substantial number of small entities. 13 This amendment simply clarifies the standard by which the Commission determines whether accountants have engaged in “improper professional conduct” and does not impose any additional burdens on small businesses. Accordingly, the Chairman, on behalf of the Commission, hereby certifies, pursuant to 5 U.S.C. 605(b), that the amendment will not have a significant economic impact on a substantial number of small businesses. 13 5 U.S.C. 601 *et seq.* B. Paperwork Reduction Act The amendment to Rule 14.8 does not establish a collection of information for which the Commission would be obligated to comply with the Paperwork Reduction Act. 14 14 44 U.S.C. 3501 *et seq.* C. Consideration of Costs and Benefits Section 15(a) of the Commodity Exchange Act (“CEA”) requires the Commission to “consider the costs and benefits” of its actions before promulgating a regulation under the CEA or issuing certain orders. 15 Section 15(a) further specifies that the costs and benefits shall be evaluated in light of five broad areas of market and public concern:

(1)Protection of market participants and the public;

(2)efficiency, competitiveness, and financial integrity of futures markets;

(3)price discovery;

(4)sound risk management practices; and

(5)other public interest considerations. The Commission considers the costs and benefits resulting from its discretionary determinations with respect to the section 15(a) factors. 15 7 U.S.C. 19(a). Reckless accounting practices threaten serious harm to market participants and, potentially, to the financial system as a whole. 16 Rule 14.8, which encompasses “improper professional conduct” of accountants that practice before the Commission, is one of the Commission's tools to guard against such harm. The amendment does not substantively change the standard that the Commission has employed to date under rule 14.8(c) in assessing accountant conduct. Rather, as discussed above, the amendment—which closely tracks language in the SEC's analogous rule 17 —simply expands upon the pre-existing language of rule 14.8(c) to articulate the standard more specifically and in a manner consistent with the standard the Commission has applied in past administrative adjudications considering accountant behavior. 18 16 For example, accounting professionals who prepare or assist in the preparation of misleading auditing reports or financial statements—either deliberately or due to their incompetence—may help cover up fraudulent practices that result in loss of customer funds. In addition, misleading auditing reports or financial statements may result in excessive risks being undertaken, because certain risk measures or decisions regarding risk management are based on accounting data. 17 17 CFR 201.102(e)(1)(iv). 18 *See* note 2, *supra.* Accordingly, the amendment's chief benefit derives from clarifying the specific contours of the Commission's existing rule 14.8(c) standard as applied to accountant behavior and by codifying this refined approach in the Commission's regulations. Through this codification, the standard will be more transparent and accessible to professional practitioners, market participants, and the public generally. As a result, accountants appearing before the Commission will have the benefit of prominent notice of the specific standards of conduct to which they are held, and the consequences of failing to meet them. To the extent an accountant inclined to test the bounds of professional conduct may have previously perceived loopholes or ambiguity for exploitation under the generally-stated standard of rule 14.8(c), the clarifying amendment provides a deterrent against such potentially damaging conduct—a benefit for market participants and the public. Further, such clear, specific notice forecloses to a great degree potential for an offending accounting practitioner, in defense of improper conduct, to argue confusion or uncertainty about what specifically the Commission's standard requires, thus supporting Commission enforcement efficiency. The Commission anticipates no material cost burden attributable to the amendment for market participants or accounting professionals to whom the amendment is addressed. Again, this amendment merely articulates with more precision the contours of the more generally-stated standard of rule 14.8(c) as it has existed prior to this amendment; further, this pre-existing standard has encompassed standards governing the accounting profession generally and with which accounting professionals have needed to comply. Since the clarifying amendment effects no substantive change to the rule 14.8 standard, accountants practicing before the Commission should already be in compliance. Consequently, they should experience no cost to change their behavior to comply with the rule as amended. In the following, the Commission considers the amendment relative to the CEA section 15(a) factors.

(1)Protection of Market Participants and the Public As noted, improper accounting practices may help to cover up financial frauds or foster improper managerial decisions and may pose a threat to the safety of customer funds. By articulating the Commission's standards in more specific, codified, and readily accessible form, the amendment safeguards against accountants professing lack of knowledge of the applicable standards—or exploiting perceived ambiguities in them—to the detriment of market participants and the public.

(2)Efficiency, Competitiveness, and Financial Integrity of Futures Markets Threats to the safety of customer funds generate public distrust in financial market integrity. To the extent this rule amendment better informs accountants and fosters their understanding of the Commission's standards and the consequences of improper actions—actions that potentially could threaten the safety of customer funds—the amendment promotes the integrity of financial markets.

(3)Price Discovery The Commission does not foresee that the amendment will directly impact price discovery.

(4)Sound Risk Management Practices As noted, improper accounting practices may lead to unnecessary risks being undertaken, as certain risk measures or managerial decisions are based on accounting data. To the extent the amendment improves accountants' understanding of the Commission's standards, thereby deterring improper conduct that potentially could result in unnecessary risks being undertaken, the amendment promotes sound risk management practices.

(5)Other Public Interest Considerations By harmonizing the rule 14.8(c) standard for accountants with that of SEC rule of practice 102(e), the amendment helps to ensure consistency and reduces potential for confusion. List of Subjects in 17 CFR Part 14 Administrative practice and procedure, Professional conduct and competency standards, Ethical conduct, Penalties. For the reasons discussed in the preamble, the Commodity Futures Trading Commission amends 17 CFR part 14 as set forth below: PART 14—RULES RELATING TO SUSPENSION OR DISBARMENT FROM APPEARANCE AND PRACTICE 1. The authority citation for part 14 is revised to read as follows: Authority: Pub. L. 93-463, sec. 101(a)(11), 88 Stat. 1391, 7 U.S.C. 4a(j). 2. Amend § 14.8 by revising paragraph

(c)to read as follows: § 14.8 Lack of requisite qualifications, character and integrity.

(c)To have engaged in unethical or improper professional conduct either in the course of any adjudicatory, investigative or rulemaking or other proceeding before the Commission or otherwise. With respect to the professional conduct of persons licensed to practice as accountants, “unethical or improper professional conduct” means:

(1)Intentional or knowing conduct, including reckless conduct, that results in a violation of applicable professional principles or standards; or

(2)Either of the following two types of negligent conduct:

(i)A single instance of highly unreasonable conduct that results in a violation of applicable professional principles or standards in circumstances in which an accountant knows, or should know, that heightened scrutiny is warranted.

(ii)Repeated instances of unreasonable conduct, each resulting in a violation of applicable professional principles or standards, which indicate a lack of competence to practice before the Commission. Issued in Washington, DC, on June 5, 2015, by the Commission. Christopher J. Kirkpatrick, Secretary of the Commission. Note: The following appendix will not appear in the Code of Federal Regulations. Appendix to Proceedings Before the Commodity Futures Trading Commission; Rules Relating to Suspension or Disbarment From Appearance and Practice—Commission Voting Summary On this matter, Chairman Massad and Commissioners Wetjen, Bowen, and Giancarlo voted in the affirmative. No Commissioner voted in the negative. [FR Doc. 2015-14159 Filed 6-9-15; 8:45 am]

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