Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to an Increase in Fees for Certain Qualification Examinations, 76480-76482 [E5-7840]
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76480
Federal Register / Vol. 70, No. 247 / Tuesday, December 27, 2005 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52981; File No. SR–NASD–
2005–133]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to an Increase in
Fees for Certain Qualification
Examinations
December 19, 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
15, 2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
Series
4 ..........................
6 ..........................
7 ..........................
9 ..........................
10 ........................
11 ........................
17 ........................
22 ........................
23 ........................
24 ........................
26 ........................
27 ........................
28 ........................
37 ........................
38 ........................
39 ........................
42 ........................
55 ........................
62 ........................
72 ........................
82 ........................
86 ........................
87 ........................
NASD is proposing to amend Section
4 of Schedule A to the NASD By-Laws
(‘‘Schedule A’’) to increase examination
and C below, of the most significant
aspects of such statements.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASD 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. NASD has prepared
summaries, set forth in Sections A, B,
bjneal on PROD1PC70 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
fees that shall be assessed persons
taking certain qualifications
examinations as of January 1, 2006.
Below is the text of the proposed rule
change. Proposed new language is in
italics; proposed deletions are in
[brackets].
*
*
*
*
*
B. SCHEDULE A TO NASD BY-LAWS
*
*
*
*
*
C. Section 4—Fees
(a) and (b) No change.
(c) The following fees shall be
assessed to each individual who
registers to take an examination as
described below as of January 1,
200[5]6. These fees are in addition to
the registration fee described in
paragraph (b).
Registered Options Principal .............................................................................................................
Investment Company Products/Variable Contracts Representative ................................................
General Securities Representative .....................................................................................................
General Securities Sales Supervisor—Options Module ...................................................................
General Securities Sales Supervisor—General Module ...................................................................
Assistant Representative—Order Processing ....................................................................................
Limited Registered Representative ....................................................................................................
Direct Participation Programs Representative ..................................................................................
General Securities Principal Sales Supervisor Module ...................................................................
General Securities Principal ..............................................................................................................
Investment Company Products/Variable Contracts Principal .........................................................
Financial and Operations Principal ..................................................................................................
Introducing Broker/Dealer Financial and Operations Principal .....................................................
Canada Module of S7 (Options Required) ........................................................................................
Canada Module of S7 (No Options Required) ..................................................................................
Direct Participation Programs Principal ...........................................................................................
Registered Options Representative ....................................................................................................
Limited Representative—Equity Trader ............................................................................................
Corporate Securities Limited Representative ...................................................................................
Government Securities Representative .............................................................................................
Limited Representative—Private Securities Offering .......................................................................
Research Analyst—Analysis ..............................................................................................................
Research Analyst—Regulatory ..........................................................................................................
(1) through (3) No change.
(d) through (h) No change.
*
*
*
*
*
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 For example, NASD administers and delivers
the Series 6, 24, and 27 examinations, which are
2 17
VerDate Aug<31>2005
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by NASD. NASD
has designated the proposed rule change
as one establishing or changing a due,
fee, or other charge under Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
14:54 Dec 23, 2005
Jkt 208001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
This proposed rule change amends
Schedule A to increase examination fees
that shall be assessed persons taking
certain qualification examinations as of
January 1, 2006. Any person associated
with a member firm who is engaged in
the securities business of the firm must
register with the NASD. As part of the
registration process, securities
sponsored by NASD. NASD also administers and
delivers client examinations, such as the Series 7,
which is sponsored by the NYSE, and the Series 10,
which is sponsored jointly by several SROs (the
American Stock Exchange LLC (‘‘Amex’’), the
Chicago Board Options Exchange, Inc. (‘‘CBOE’’),
PO 00000
Frm 00039
Fmt 4703
Sfmt 4703
$80
[$70] $75
[$225] $250
$60
[$95] $100
$60
$65
[$70] $75
$75
[$85] $95
$75
[$85] $95
$75
$150
$150
$75
$60
[$80] $85
[$70] $75
[$80] $85
$75
$150
$105
professionals must pass a qualification
examination to demonstrate competence
in each area in which they intend to
work.
Some of these examinations are
sponsored (i.e., developed) by NASD,
and others are sponsored by the New
York Stock Exchange, Inc. (‘‘NYSE’’),
the Municipal Securities Rulemaking
Board (‘‘MSRB’’), or other selfregulatory organizations (‘‘SROs’’).5
NASD administers qualification
examinations via computer through the
PROCTOR system 6 at test centers
operated by vendors under contract
with NASD. NASD charges an
examination fee to candidates for
NASD-sponsored examinations. For
MSRB, NASD, NYSE, the Pacific Exchange, Inc.
(‘‘PCX’’), and the Philadelphia Stock Exchange, Inc.
(‘‘Phlx’’)).
6 PROCTOR is a technology system that supports
computer-based testing and training.
E:\FR\FM\27DEN1.SGM
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Federal Register / Vol. 70, No. 247 / Tuesday, December 27, 2005 / Notices
those examinations sponsored by a
NASD client and administered/
delivered by NASD, NASD charges a
delivery fee that comprises either a part
or all of the examination fee for these
examinations.7
Each year, NASD conducts a
comprehensive review of the licensing
examination fee structure, which
includes an analysis of the costs of
developing, administering, and
delivering examinations. NASD’s review
in 2005 showed that certain operational
costs are rising. In particular, these costs
consist of (1) the cost of providing the
extensive network of test delivery
centers; and (2) technology costs
required to maintain the current
PROCTOR system and to redesign the
PROCTOR system. The proposed rule
change will increase examination fees
for certain NASD-sponsored
examinations. In addition, NASD has
advised its client examination sponsors
of the impact of the higher costs on
delivery fees for client-sponsored
examinations. Accordingly, NASD is
proposing to amend Schedule A to
reflect the following increases in
examination fees (which includes
NASD-sponsored and client-sponsored
examinations, as well as joint SRO
examinations):
Series 6 ........................
Series 7 ........................
Investment Company Products/Variable Contracts Representative (NASD-sponsored) .............
General Securities Representative (NYSE-sponsored) ..................................................................
Series 10 ......................
General Securities Sales Supervisor—General Module (Sponsored jointly by AMEX, CBOE,
NASD, NYSE, PCX, and PHLX).
Direct Participation Programs Representative (NASD-sponsored) ...............................................
General Securities Principal (NASD-sponsored) ...........................................................................
Financial and Operations Principal (NASD-sponsored) ...............................................................
Limited Representative—Equity Trader (NASD-sponsored) .........................................................
Corporate Securities Limited Representative (NASD-sponsored) ................................................
Government Securities Representative (NASD-sponsored) ..........................................................
Series
Series
Series
Series
Series
Series
22
24
27
55
62
72
......................
......................
......................
......................
......................
......................
The proposed rule change is effective
upon filing pursuant to Section
19(b)(3)(A) of the Act 8 and paragraph
(f)(2) of Rule 19b–4 thereunder,9 in that
the proposed rule change establishes or
changes a due, fee, or other charge
imposed by NASD. The new fees will be
become effective for ‘‘120-day
examination windows’’ opened in the
Central Registration Depository (CRD)
on or after January 1, 2006.10 NASD will
continue to conduct an annual review of
its costs and adjust examination and
delivery fees, if necessary, as of January
1 each year after making the appropriate
rule filings.
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
Written comments were neither
solicited nor received.
From $70 to $75.
From $225 to
$250.
From $95 to $100.
From
From
From
From
From
From
$70
$85
$85
$80
$70
$80
to
to
to
to
to
to
$75.
$95.
$95.
$85.
$75.
$85.
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
Number SR–NASD–2005–133 on the
subject line.
Paper Comments
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD does not believe that the
proposed rule change will result in any
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:
• 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–NASD–2005–133. 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
7 For additional discussion of the examination
and delivery fee structure, see Securities Exchange
Act Release No. 50575 (October 20, 2004), 69 FR
62732 (October 27, 2004) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
and Amendment No. 1 Thereto Relating to
Amendments to Section 4 of Schedule A to the
NASD By-Laws (Fees for Qualification
Examinations)) (SR–NASD–2004–145).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(2).
10 The published fee represents the fee that will
be charged at the time the individual registers for
the examination. The individual then has 120 days
to take the examination.
11 15 U.S.C. 78o–3(b)(5).
12 Id.
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(2).
bjneal on PROD1PC70 with NOTICES
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(5) of the Act,11 which
requires, among other things, that NASD
rules provide for the equitable
allocation of reasonable dues, fees and
other charges among members and
issuers and other persons using any
facility or system that NASD operates or
controls. NASD believes that the rule
change is consistent with Section
15A(b)(5) of the Act in that the fee
changes reflect NASD’s increased costs
in delivering the examinations and in
maintaining and upgrading the
examination delivery system.12
VerDate Aug<31>2005
14:54 Dec 23, 2005
Jkt 208001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by NASD, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 13 and Rule 19b–
4(f)(2) thereunder.14 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
PO 00000
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Fmt 4703
Sfmt 4703
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27DEN1
76482
Federal Register / Vol. 70, No. 247 / Tuesday, December 27, 2005 / Notices
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the NASD. 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–NASD–2005–133 and
should be submitted on or before
January 17, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52978; File No. SR–NASD–
2005–141]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto To Modify the Execution Fees
for Quotes and Orders Executed in the
Nasdaq Opening Cross
December 19, 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 December
5, 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’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been prepared by Nasdaq. On
December 9, 2005, Nasdaq filed
Amendment No. 1 to the proposed rule
change.3 Nasdaq has designated this
proposal as establishing or changing a
due, fee, or other charge imposed by a
self-regulatory organization pursuant to
Section 19(b)(3)(A) of the Act,4 and Rule
19b–4(f)(2) thereunder,5 which renders
the proposal effective upon filing with
the Commission. The Commission is
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, Nasdaq made nonsubstantive changes to the text of the proposed rule
change.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(2).
bjneal on PROD1PC70 with NOTICES
1 15
VerDate Aug<31>2005
14:54 Dec 23, 2005
Jkt 208001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to modify the
execution fees for quotes and orders in
the Nasdaq Opening Cross. Nasdaq will
implement the proposed rule change on
January 3, 2006. Additions are
italicized, and deletions are in brackets.
*
*
*
*
*
7010. System Services
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7840 Filed 12–23–05; 8:45 am]
15 17
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
(a)–(h) No change
(i) Nasdaq Market Center and Brut
Facility Order Execution
(1)–(3) No change.
(4) Opening Cross
[For a period of three months
commencing on the date Nasdaq
implements its Opening Cross (as
described in Rule 4704(d)), members
shall not be charged Nasdaq Market
Center execution fees, or receive Nasdaq
Market Center liquidity provider credits,
for those quotes and orders executed in
the Nasdaq Opening Cross.]
Commencing on January 1, 2006,
members shall be assessed the following
Nasdaq Market Center execution fees for
quotes and orders executed in the
Nasdaq Opening Cross:
Market-on-Open, Limit-on-Open and
Day orders executed in the Nasdaq
Opening Cross—$0.0005 per share
executed for the net number of buy and
sell shares up to a maximum of $10,000
per firm per month
All other quotes and orders executed
in the Nasdaq Opening Cross—No
charge for execution
(5) and (6) No change.
(j)–(w) No change.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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. Nasdaq has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
PO 00000
Frm 00041
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq has determined to establish
the following pricing for the Nasdaq
Opening Cross beginning January 3,
2006. Nasdaq will assess a fee of
$0.0005 per share executed during the
Nasdaq Opening Cross for all Marketon-Open, Limit-on-Open, and Day
orders that are executed in the Opening
Cross. That fee will be assessed on the
difference between the total number of
shares of buy (sell) interest minus the
total number of shares of sell (buy)
interest executed by that firm for all
stocks.
The fee will be capped at $10,000 per
firm per month for all stocks combined.
At this time, Nasdaq will assess no fees
and offer no rebates for quotations and
other orders executed during the Nasdaq
Opening Cross. Nasdaq will monitor the
effectiveness of the proposed pricing
schedule in preserving and enhancing
the success of the Nasdaq Opening
Cross to date.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with Section
15A of the Act,6 in general, and Section
15A(b)(5) 7 of the Act, in particular, in
that it provides for the equitable
allocation of reasonable dues, fees, and
other charges among members and
issuers and other persons using any
facility or system which the NASD
operates or controls.
The proposed fees for Market-onOpen, Limit-on-Open, and Day orders
are consistent with the statute in that
they are designed to result in an
execution charge approximating the
execution charge for quotes and orders
entered and executed in the Nasdaq
Market Center throughout the trading
day. Assessing no fee and offering no
rebate for quotations and other orders
executed during the Nasdaq Opening
Cross is consistent with the statute
because it is designed to encourage the
entry of Imbalance Only orders to
minimize imbalances resulting from the
Opening Cross algorithm, and to
preserve the Opening Cross liquidity
provided by quotations and orders from
the continuous market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change will impose any
6 15
7 15
E:\FR\FM\27DEN1.SGM
U.S.C. 78o–3.
U.S.C. 78o–3(b)(5).
27DEN1
]]>Agencies
[Federal Register Volume 70, Number 247 (Tuesday, December 27, 2005)]
[Notices]
[Pages 76480-76482]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7840]
[[Page 76480]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52981; File No. SR-NASD-2005-133]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to an Increase in Fees for Certain Qualification
Examinations
December 19, 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 15, 2005, the National Association of Securities Dealers,
Inc. (``NASD'') 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 NASD.
NASD has designated the proposed rule change as one establishing or
changing a due, fee, or other charge under Section 19(b)(3)(A)(ii) of
the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the
proposal effective upon filing with the 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)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
NASD is proposing to amend Section 4 of Schedule A to the NASD By-
Laws (``Schedule A'') to increase examination fees that shall be
assessed persons taking certain qualifications examinations as of
January 1, 2006. Below is the text of the proposed rule change.
Proposed new language is in italics; proposed deletions are in
[brackets].
* * * * *
B. SCHEDULE A TO NASD BY-LAWS
* * * * *
C. Section 4--Fees
(a) and (b) No change.
(c) The following fees shall be assessed to each individual who
registers to take an examination as described below as of January 1,
200[5]6. These fees are in addition to the registration fee described
in paragraph (b).
Series 4...................... Registered Options $80
Principal.
Series 6...................... Investment Company [$70] $75
Products/Variable
Contracts
Representative.
Series 7...................... General Securities [$225] $250
Representative.
Series 9...................... General Securities $60
Sales Supervisor--
Options Module.
Series 10..................... General Securities [$95] $100
Sales Supervisor--
General Module.
Series 11..................... Assistant $60
Representative--Order
Processing.
Series 17..................... Limited Registered $65
Representative.
Series 22..................... Direct Participation [$70] $75
Programs
Representative.
Series 23..................... General Securities $75
Principal Sales
Supervisor Module.
Series 24..................... General Securities [$85] $95
Principal.
Series 26..................... Investment Company $75
Products/Variable
Contracts Principal.
Series 27..................... Financial and [$85] $95
Operations Principal.
Series 28..................... Introducing Broker/ $75
Dealer Financial and
Operations Principal.
Series 37..................... Canada Module of S7 $150
(Options Required).
Series 38..................... Canada Module of S7 $150
(No Options Required).
Series 39..................... Direct Participation $75
Programs Principal.
Series 42..................... Registered Options $60
Representative.
Series 55..................... Limited [$80] $85
Representative--Equit
y Trader.
Series 62..................... Corporate Securities [$70] $75
Limited
Representative.
Series 72..................... Government Securities [$80] $85
Representative.
Series 82..................... Limited $75
Representative--Priva
te Securities
Offering.
Series 86..................... Research Analyst-- $150
Analysis.
Series 87..................... Research Analyst-- $105
Regulatory.
(1) through (3) No change.
(d) through (h) No change.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASD 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. NASD 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
This proposed rule change amends Schedule A to increase examination
fees that shall be assessed persons taking certain qualification
examinations as of January 1, 2006. Any person associated with a member
firm who is engaged in the securities business of the firm must
register with the NASD. As part of the registration process, securities
professionals must pass a qualification examination to demonstrate
competence in each area in which they intend to work.
Some of these examinations are sponsored (i.e., developed) by NASD,
and others are sponsored by the New York Stock Exchange, Inc.
(``NYSE''), the Municipal Securities Rulemaking Board (``MSRB''), or
other self-regulatory organizations (``SROs'').\5\ NASD administers
qualification examinations via computer through the PROCTOR[supreg]
system \6\ at test centers operated by vendors under contract with
NASD. NASD charges an examination fee to candidates for NASD-sponsored
examinations. For
[[Page 76481]]
those examinations sponsored by a NASD client and administered/
delivered by NASD, NASD charges a delivery fee that comprises either a
part or all of the examination fee for these examinations.\7\
---------------------------------------------------------------------------
\5\ For example, NASD administers and delivers the Series 6, 24,
and 27 examinations, which are sponsored by NASD. NASD also
administers and delivers client examinations, such as the Series 7,
which is sponsored by the NYSE, and the Series 10, which is
sponsored jointly by several SROs (the American Stock Exchange LLC
(``Amex''), the Chicago Board Options Exchange, Inc. (``CBOE''),
MSRB, NASD, NYSE, the Pacific Exchange, Inc. (``PCX''), and the
Philadelphia Stock Exchange, Inc. (``Phlx'')).
\6\ PROCTOR[supreg] is a technology system that supports
computer-based testing and training.
\7\ For additional discussion of the examination and delivery
fee structure, see Securities Exchange Act Release No. 50575
(October 20, 2004), 69 FR 62732 (October 27, 2004) (Notice of Filing
and Immediate Effectiveness of Proposed Rule Change and Amendment
No. 1 Thereto Relating to Amendments to Section 4 of Schedule A to
the NASD By-Laws (Fees for Qualification Examinations)) (SR-NASD-
2004-145).
---------------------------------------------------------------------------
Each year, NASD conducts a comprehensive review of the licensing
examination fee structure, which includes an analysis of the costs of
developing, administering, and delivering examinations. NASD's review
in 2005 showed that certain operational costs are rising. In
particular, these costs consist of (1) the cost of providing the
extensive network of test delivery centers; and (2) technology costs
required to maintain the current PROCTOR[supreg] system and to redesign
the PROCTOR[supreg] system. The proposed rule change will increase
examination fees for certain NASD-sponsored examinations. In addition,
NASD has advised its client examination sponsors of the impact of the
higher costs on delivery fees for client-sponsored examinations.
Accordingly, NASD is proposing to amend Schedule A to reflect the
following increases in examination fees (which includes NASD-sponsored
and client-sponsored examinations, as well as joint SRO examinations):
Series 6................................ Investment Company Products/ From $70 to $75.
Variable Contracts
Representative (NASD-sponsored).
Series 7................................ General Securities From $225 to $250.
Representative (NYSE-sponsored).
Series 10............................... General Securities Sales From $95 to $100.
Supervisor--General Module
(Sponsored jointly by AMEX,
CBOE, NASD, NYSE, PCX, and
PHLX).
Series 22............................... Direct Participation Programs From $70 to $75.
Representative (NASD-sponsored).
Series 24............................... General Securities Principal From $85 to $95.
(NASD-sponsored).
Series 27............................... Financial and Operations From $85 to $95.
Principal (NASD-sponsored).
Series 55............................... Limited Representative--Equity From $80 to $85.
Trader (NASD-sponsored).
Series 62............................... Corporate Securities Limited From $70 to $75.
Representative (NASD-sponsored).
Series 72............................... Government Securities From $80 to $85.
Representative (NASD-sponsored).
The proposed rule change is effective upon filing pursuant to
Section 19(b)(3)(A) of the Act \8\ and paragraph (f)(2) of Rule 19b-4
thereunder,\9\ in that the proposed rule change establishes or changes
a due, fee, or other charge imposed by NASD. The new fees will be
become effective for ``120-day examination windows'' opened in the
Central Registration Depository (CRD[supreg]) on or after January 1,
2006.\10\ NASD will continue to conduct an annual review of its costs
and adjust examination and delivery fees, if necessary, as of January 1
each year after making the appropriate rule filings.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
\10\ The published fee represents the fee that will be charged
at the time the individual registers for the examination. The
individual then has 120 days to take the examination.
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2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\11\ which requires, among
other things, that NASD rules provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system that NASD operates or
controls. NASD believes that the rule change is consistent with Section
15A(b)(5) of the Act in that the fee changes reflect NASD's increased
costs in delivering the examinations and in maintaining and upgrading
the examination delivery system.\12\
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\11\ 15 U.S.C. 78o-3(b)(5).
\12\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASD 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
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change establishes or changes a due,
fee, or other charge imposed by NASD, it has become effective pursuant
to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(2)
thereunder.\14\ 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.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(2).
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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-NASD-2005-133 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-NASD-2005-133. 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
[[Page 76482]]
Room. Copies of such filing also will be available for inspection and
copying at the principal office of the NASD. 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-NASD-2005-133 and should be submitted on
or before January 17, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
Jonathan G. Katz,
Secretary.
[FR Doc. E5-7840 Filed 12-23-05; 8:45 am]
BILLING CODE 8010-01-P
