Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Revisions to the Study Outline and Selection Specifications for the Limited Principal-General Securities Sales Supervisor (Series 9/10) Examination Program, 74074-74076 [E5-7327]
Download as PDF
<![CDATA[
74074
Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–ISE–2005–052 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–0903.
All submissions should refer to File
No. SR–ISE–2005–052. This file number
should be included on the subject line
if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing will also be
available for inspection and copying at
the principal office of the ISE. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–ISE–2005–052 and should be
submitted on or before January 4, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7303 Filed 12–13–05; 8:45 am]
BILLING CODE 8010–01–P
12 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
15:29 Dec 13, 2005
Jkt 208001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52896; File No. SR-NASD–
2005–116]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Approving
Proposed Rule Change To Modify
Nasdaq’s Auditor Peer Review
Requirement
December 6, 2005.
On September 29, 2005, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’), through its subsidiary, The
Nasdaq Stock Market, Inc. (‘‘Nasdaq’’),
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and
Rule 19b–4 thereunder,2 a proposed rule
change to modify NASD Rule 4350(k),
regarding the oversight of accountants
that audit listed issuers.3 The proposed
rule change was published for comment
in the Federal Register on October 26,
2005.4 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
Current NASD Rule 4350(k) requires
each issuer listed on Nasdaq to be
audited by an independent accountant
that has received an external quality
control review by another independent
public accountant (a ‘‘peer review’’) or
is enrolled in an acceptable peer review
program. The proposed rule change
would replace this requirement with a
provision that requires each listed issuer
to be audited by an independent
accountant that is registered as a public
accounting firm with the Public
Company Accounting Oversight Board
(‘‘PCAOB’’), as provided for in the
Sarbanes-Oxley Act of 2002 (the
‘‘Sarbanes-Oxley Act’’).5 The PCAOB is
charged, among other things, with
conducting a continuing program of
inspections of registered public
accounting firms.6
The Commission finds that the
proposed rule change is consistent with
the requirements of Section 15A(b) of
the Act 7 and the rules and regulations
thereunder applicable to a national
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The proposed rule change would also make a
conforming amendment to the language of NASD
Rule 4200(a).
4 Securities Exchange Act Release No. 52645 (Oct.
20, 2005), 70 FR 61864.
5 See Section 102 of the Sarbanes-Oxley Act, 15
U.S.C. 7212.
6 See Section 104 of the Sarbanes-Oxley Act, 15
U.S.C. 7214.
7 15 U.S.C. 78o–3(b).
securities association,8 and in
particular, with Section 15A(b)(6) of the
Act.9 The Commission believes that the
proposed rule change will align
Nasdaq’s requirements with the auditor
oversight requirements of the SarbanesOxley Act and eliminate the
redundancy of Nasdaq’s current rule.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–NASD–2005–
116) be, and it hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7333 Filed 12–13–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52915; File No. SR–NYSE–
2005–85]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Revisions to the Study Outline and
Selection Specifications for the
Limited Principal—General Securities
Sales Supervisor (Series 9/10)
Examination Program
December 7, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
30, 2005, the New York Stock Exchange,
Inc. (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by the Exchange.
The Exchange has designated the
proposed rule change as constituting a
stated policy, practice, or interpretation
with respect to the meaning,
administration, or enforcement of an
existing rule of the self-regulatory
organization pursuant to Section
19(b)(3)(A)(i) of the Act 3 and Rule 19b–
4(f)(1) thereunder,4 which renders the
proposal effective upon filing with the
1 15
2 17
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
8 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition and capital
formation. See 15 U.S.C. 78c(f).
9 15 U.S.C. 78o–3(b)(6).
10 15 U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
E:\FR\FM\14DEN1.SGM
14DEN1
Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing with the
Commission revisions to the study
outline and selection specifications for
the Limited Principal—General
Securities Sales Supervisor (Series 9/10)
examination program. The proposed
revisions update the material to reflect
changes to the laws, rules, and
regulations covered by the examination,
as well as modify the content of the
examination program to track more
closely the functional workflow of a
Series 9/10 Limited Principal.
The revised study outline is available
on the Exchange’s Web site (https://
www.nyse.com), at the NYSE, and at the
Commission. However, the Exchange
has omitted the Series 9/10 selection
specifications from this filing and has
submitted the specifications under
separate cover to the Commission with
a request for confidential treatment
pursuant to Rule 24b–2 5 under the Act.
The Exchange will announce the
proposed rule change and the
implementation date to its members and
member organizations in an Information
Memo to be published no later than 30
days after SEC Notice of this filing.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Pursuant to Section 6(c)(3)(B) 6 of the
Act, which requires the Exchange to
prescribe standards of training,
experience, and competence for persons
associated with Exchange members and
member organizations, the Exchange has
5 17
6 15
CFR 240.24b–2.
U.S.C. 78f(c)(3)(B).
VerDate Aug<31>2005
15:29 Dec 13, 2005
Jkt 208001
developed examinations, and
administers examinations developed by
other self-regulatory organizations
(‘‘SROs’’), that are designed to establish
that persons associated with Exchange
members and member organizations
have attained specified levels of
competence and knowledge. The
Exchange periodically reviews the
content of the examinations to
determine whether revisions are
necessary or appropriate in view of
changes pertaining to the subject matter
covered by the examinations.
NYSE Rule 345 (‘‘EmployeesRegistration, Approval, Records’’)
requires member firms to register with
the NYSE any individuals who regularly
perform duties customarily performed
by a direct supervisor of a registered
representative. Under NYSE Rule 342
(‘‘Offices-Approval, Supervision, and
Control’’) member firms are required to
supervise themselves. Specifically,
NYSE Rule 342.13 requires individuals
who supervise general trading activities
to have a creditable three-year record as
a registered representative or equivalent
experience and to pass the General
Securities Sales Supervisor
Qualification Examination (Series 9/10)
or another examination acceptable to
the Exchange that demonstrates
competency relevant to assigned
responsibilities.7
The Series 9/10 examination, an
industry-wide examination, qualifies an
individual to function as a General
Securities Sales Supervisor. It tests a
candidate’s knowledge of securities
industry rules and regulations and
certain statutory provisions pertinent to
the supervision of sales activities. The
Series 9/10 examination is primarily
geared towards individuals who will act
as the Branch Managers/Sales
Supervisor of the firm’s branch office
locations. The Branch Manager is
generally responsible for reviewing the
activities of registered persons at the
branch location and is also responsible
for the review and approval of customer
accounts that are opened through a
registered representative at a branch.
The Series 9/10 examination program
is shared by NYSE and the following
SROs: the American Stock Exchange
LLC, the Chicago Board Options
Exchange, Inc., the Municipal Securities
Rule Making Board (‘‘MSRB’’), the
National Association of Securities
Dealers, Inc. (‘‘NASD’’), the Pacific
7 NYSE Rule 342.13 provides that the General
Securities Principal Examination (Series 24), if
taken and passed after July 1, 2001, is an acceptable
alternative for persons whose duties do not include
the supervision of options or municipal securities
sales activity. The examination requirement may be
waived at the discretion of the Exchange.
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
74075
Exchange, Inc., and the Philadelphia
Stock Exchange, Inc. NYSE understands
that the other SROs also will file with
the Commission similar revisions to the
Series 9/10 examination program.
A committee of industry
representatives, together with the staff
of NYSE and the other SROs, recently
undertook a periodic review of the
Series 9/10 examination program. As a
result of this review, NYSE is proposing
to update the content of the examination
to cover Regulation S–P,8 MSRB Rules
G–37/G–38, SRO research analyst and
anti-money laundering rules, municipal
fund securities (e.g., 529 college savings
plans), and exchange traded funds. The
study outline also reflects the new SEC
short sale rule requirements. In
addition, as part of an ongoing effort to
align the examination more closely to
the supervisory duties of a Series 9/10
Limited Principal, NYSE is proposing to
modify the content of the examination
to track the functional workflow of a
Series 9/10 Limited Principal. Also,
NYSE is proposing to include questions
related to the rules of the options
exchanges and the MSRB and parallel
NYSE and NASD rules in the same
section of the exam.
As a result of the revisions, the main
section headings and the number of
questions on each section of the Series
9/10 study outline were modified as
follows: Section 1—Hiring,
Qualifications, and Continuing
Education, 9 questions; Section 2—
Supervision of Accounts and Sales
Activities, 94 questions; Section 3—
Conduct of Associated Persons, 14
questions; Section 4—Record keeping
Requirements, 8 questions; Section 5—
Municipal Securities Regulation, 20
questions; Section 6—Options
Regulation, 55 questions. Sections 1
through 5 constitute the Series 10
portion of the examination. Section 6
constitutes the Series 9 portion of the
examination. Series 10 covers general
securities and municipal securities and
Series 9 covers options. The revised
examination continues to cover the
areas of knowledge required for the
supervision of sales activities.
NYSE is proposing similar changes to
the corresponding sections of the Series
9/10 selection specifications and
question bank. The number of questions
on the Series 9/10 examination will
remain at 200 and candidates will have
four hours to complete the Series 10
portion and one and half hour to
complete the Series 9 portion. Also,
each candidate must correctly answer
70 percent of the questions on each
8 17 CFR. 248.1–18; 17 CFR.249.30; and 17
CFR.248, Appendix A.
E:\FR\FM\14DEN1.SGM
14DEN1
74076
Federal Register / Vol. 70, No. 239 / Wednesday, December 14, 2005 / Notices
Electronic Comments
series, 9 and 10, to receive a passing
grade.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(c)(3)(B) 9 of the Act, in that it
provides for the prescription by NYSE
of standards of training, experience, and
competence for persons associated with
NYSE members and member
organizations.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2005–85 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52918; File No. SR–PCX–
2005–113]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto Relating to Revisions to the
Series 9/10 Examination Program
December 7, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
NYSE does not believe that the
notice is hereby given that on November
proposed rule change will result in any
17, 2005, the Pacific Exchange, Inc.
burden on competition that is not
All submissions should refer to File
(‘‘PCX’’ or ‘‘Exchange’’) filed with the
necessary or appropriate in furtherance
Number SR–NYSE–2005–85. This file
Securities and Exchange Commission
of the purposes of the Act.
number should be included on the
(‘‘SEC’’ or ‘‘Commission’’) the proposed
subject line if e-mail is used. To help the
C. Self-Regulatory Organization’s
rule change as described in Items I, II,
Commission process and review your
Statement on Comments on the
and III below, which Items have been
comments more efficiently, please use
Proposed Rule Change Received From
prepared by PCX. On November 22,
only one method. The Commission will 2005, PCX filed Amendment No. 1 to
Members, Participants or Others
post all comments on the Commission’s the proposed rule change. PCX has
Comments were neither solicited nor
Internet Web site (https://www.sec.gov/
designated the proposed rule change as
received.
rules/sro.shtml). Copies of the
constituting a stated policy, practice, or
III. Date of Effectiveness of the
submission, all subsequent
interpretation with respect to the
Proposed Rule Change and Timing for
amendments, all written statements
meaning, administration, or
Commission Action
with respect to the proposed rule
enforcement of an existing rule of the
self-regulatory organization pursuant to
The proposed rule change has become change that are filed with the
Commission, and all written
Section 19(b)(3)(A)(i) of the Act 3 and
effective pursuant to Section
Rule 19b–4(f)(1) thereunder,4 which
communications relating to the
19(b)(3)(A)(i) 10 of the Act and Rule 19b–
renders the proposal effective upon
proposed rule change between the
11 in that the
4(f)(1) thereunder,
Commission and any person, other than filing with the Commission. The
proposed rule change constitutes a
Commission is publishing this notice to
stated policy, practice, or interpretation those that may be withheld from the
solicit comments on the proposed rule
public in accordance with the
with respect to the meaning,
change, as amended, from interested
provisions of 5 U.S.C. 552, will be
administration, or enforcement of an
persons.
available for inspection and copying in
existing rule of the self-regulatory
the Commission’s Public Reference
organization. The Exchange will
I. Self-Regulatory Organization’s
announce the implementation date to its Room. Copies of such filing also will be Statement of the Terms of Substance of
members and member organizations in
available for inspection and copying at
the Proposed Rule Change
an Information Memo to be published
the principal office of the NYSE. All
PCX is filing revisions to the study
no later than 30 days after SEC Notice
comments received will be posted
outline and selection specifications for
of this filing.
without change; the Commission does
the Limited Principal—General
At any time within 60 days of the
not edit personal identifying
Securities Sales Supervisor (Series 9/10)
filing of the proposed rule change, the
information from submissions. You
examination program. The proposed
Commission may summarily abrogate
should submit only information that
revisions update the material to reflect
such rule change if it appears to the
you wish to make available publicly. All changes to the laws, rules, and
Commission that such action is
submissions should refer to File
regulations covered by the examination,
necessary or appropriate in the public
Number SR–NYSE–2005–85 and should as well as modify the content of the
interest, for the protection of investors,
be submitted on or before January 4,
examination program to track more
or otherwise in furtherance of the
2006.
closely the functional workflow of a
purposes of the Act.
Series 9/10 limited principal. PCX is not
For the Commission, by the Division of
proposing any textual changes to the
IV. Solicitation of Comments
Market Regulation, pursuant to delegated
existing PCX rules.
12
authority.
Interested persons are invited to
The revised study outline is available
Jonathan G. Katz,
submit written data, views, and
on PCX’s Web site (https://
arguments concerning the foregoing,
Secretary.
www.pacificex.com), at PCX, and at the
including whether the proposed rule
[FR Doc. E5–7327 Filed 12–13–05; 8:45 am]
Commission. However, PCX has omitted
change is consistent with the Act.
the Series 9/10 selection specifications
BILLING CODE 8010–01–P
Comments may be submitted by any of
from this filing and has submitted the
the following methods:
1 15
9 15
U.S.C. 78f(c)(3)(B).
10 15 U.S.C. 78s(b)(3)(A)(i).
11 17 CFR 240.19b–4(f)(1).
VerDate Aug<31>2005
15:29 Dec 13, 2005
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
2 17
12 17
Jkt 208001
PO 00000
CFR 200.30–3(a)(12).
Frm 00089
Fmt 4703
Sfmt 4703
E:\FR\FM\14DEN1.SGM
14DEN1
]]>Agencies
[Federal Register Volume 70, Number 239 (Wednesday, December 14, 2005)]
[Notices]
[Pages 74074-74076]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7327]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52915; File No. SR-NYSE-2005-85]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Revisions to the Study Outline and Selection Specifications
for the Limited Principal--General Securities Sales Supervisor (Series
9/10) Examination Program
December 7, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 30, 2005, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The Exchange has designated the proposed rule change as
constituting a stated policy, practice, or interpretation with respect
to the meaning, administration, or enforcement of an existing rule of
the self-regulatory organization pursuant to Section 19(b)(3)(A)(i) of
the Act \3\ and Rule 19b-4(f)(1) thereunder,\4\ which renders the
proposal effective upon filing with the
[[Page 74075]]
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing with the Commission revisions to the study
outline and selection specifications for the Limited Principal--General
Securities Sales Supervisor (Series 9/10) examination program. The
proposed revisions update the material to reflect changes to the laws,
rules, and regulations covered by the examination, as well as modify
the content of the examination program to track more closely the
functional workflow of a Series 9/10 Limited Principal.
The revised study outline is available on the Exchange's Web site
(https://www.nyse.com), at the NYSE, and at the Commission. However, the
Exchange has omitted the Series 9/10 selection specifications from this
filing and has submitted the specifications under separate cover to the
Commission with a request for confidential treatment pursuant to Rule
24b-2 \5\ under the Act. The Exchange will announce the proposed rule
change and the implementation date to its members and member
organizations in an Information Memo to be published no later than 30
days after SEC Notice of this filing.
---------------------------------------------------------------------------
\5\ 17 CFR 240.24b-2.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Pursuant to Section 6(c)(3)(B) \6\ of the Act, which requires the
Exchange to prescribe standards of training, experience, and competence
for persons associated with Exchange members and member organizations,
the Exchange has developed examinations, and administers examinations
developed by other self-regulatory organizations (``SROs''), that are
designed to establish that persons associated with Exchange members and
member organizations have attained specified levels of competence and
knowledge. The Exchange periodically reviews the content of the
examinations to determine whether revisions are necessary or
appropriate in view of changes pertaining to the subject matter covered
by the examinations.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(c)(3)(B).
---------------------------------------------------------------------------
NYSE Rule 345 (``Employees-Registration, Approval, Records'')
requires member firms to register with the NYSE any individuals who
regularly perform duties customarily performed by a direct supervisor
of a registered representative. Under NYSE Rule 342 (``Offices-
Approval, Supervision, and Control'') member firms are required to
supervise themselves. Specifically, NYSE Rule 342.13 requires
individuals who supervise general trading activities to have a
creditable three-year record as a registered representative or
equivalent experience and to pass the General Securities Sales
Supervisor Qualification Examination (Series 9/10) or another
examination acceptable to the Exchange that demonstrates competency
relevant to assigned responsibilities.\7\
---------------------------------------------------------------------------
\7\ NYSE Rule 342.13 provides that the General Securities
Principal Examination (Series 24), if taken and passed after July 1,
2001, is an acceptable alternative for persons whose duties do not
include the supervision of options or municipal securities sales
activity. The examination requirement may be waived at the
discretion of the Exchange.
---------------------------------------------------------------------------
The Series 9/10 examination, an industry-wide examination,
qualifies an individual to function as a General Securities Sales
Supervisor. It tests a candidate's knowledge of securities industry
rules and regulations and certain statutory provisions pertinent to the
supervision of sales activities. The Series 9/10 examination is
primarily geared towards individuals who will act as the Branch
Managers/Sales Supervisor of the firm's branch office locations. The
Branch Manager is generally responsible for reviewing the activities of
registered persons at the branch location and is also responsible for
the review and approval of customer accounts that are opened through a
registered representative at a branch.
The Series 9/10 examination program is shared by NYSE and the
following SROs: the American Stock Exchange LLC, the Chicago Board
Options Exchange, Inc., the Municipal Securities Rule Making Board
(``MSRB''), the National Association of Securities Dealers, Inc.
(``NASD''), the Pacific Exchange, Inc., and the Philadelphia Stock
Exchange, Inc. NYSE understands that the other SROs also will file with
the Commission similar revisions to the Series 9/10 examination
program.
A committee of industry representatives, together with the staff of
NYSE and the other SROs, recently undertook a periodic review of the
Series 9/10 examination program. As a result of this review, NYSE is
proposing to update the content of the examination to cover Regulation
S-P,\8\ MSRB Rules G-37/G-38, SRO research analyst and anti-money
laundering rules, municipal fund securities (e.g., 529 college savings
plans), and exchange traded funds. The study outline also reflects the
new SEC short sale rule requirements. In addition, as part of an
ongoing effort to align the examination more closely to the supervisory
duties of a Series 9/10 Limited Principal, NYSE is proposing to modify
the content of the examination to track the functional workflow of a
Series 9/10 Limited Principal. Also, NYSE is proposing to include
questions related to the rules of the options exchanges and the MSRB
and parallel NYSE and NASD rules in the same section of the exam.
---------------------------------------------------------------------------
\8\ 17 CFR. 248.1-18; 17 CFR.249.30; and 17 CFR.248, Appendix A.
---------------------------------------------------------------------------
As a result of the revisions, the main section headings and the
number of questions on each section of the Series 9/10 study outline
were modified as follows: Section 1--Hiring, Qualifications, and
Continuing Education, 9 questions; Section 2--Supervision of Accounts
and Sales Activities, 94 questions; Section 3--Conduct of Associated
Persons, 14 questions; Section 4--Record keeping Requirements, 8
questions; Section 5--Municipal Securities Regulation, 20 questions;
Section 6--Options Regulation, 55 questions. Sections 1 through 5
constitute the Series 10 portion of the examination. Section 6
constitutes the Series 9 portion of the examination. Series 10 covers
general securities and municipal securities and Series 9 covers
options. The revised examination continues to cover the areas of
knowledge required for the supervision of sales activities.
NYSE is proposing similar changes to the corresponding sections of
the Series 9/10 selection specifications and question bank. The number
of questions on the Series 9/10 examination will remain at 200 and
candidates will have four hours to complete the Series 10 portion and
one and half hour to complete the Series 9 portion. Also, each
candidate must correctly answer 70 percent of the questions on each
[[Page 74076]]
series, 9 and 10, to receive a passing grade.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(c)(3)(B) \9\ of the Act, in that it provides for the
prescription by NYSE of standards of training, experience, and
competence for persons associated with NYSE members and member
organizations.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(c)(3)(B).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NYSE does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A)(i) \10\ of the Act and Rule 19b-4(f)(1) thereunder,\11\ in
that the proposed rule change constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule of the self-regulatory organization.
The Exchange will announce the implementation date to its members and
member organizations in an Information Memo to be published no later
than 30 days after SEC Notice of this filing.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(i).
\11\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2005-85 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-NYSE-2005-85. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of the NYSE. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSE-2005-85 and should be submitted on or before
January 4, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. E5-7327 Filed 12-13-05; 8:45 am]
BILLING CODE 8010-01-P
