Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Revisions to the Series 22 Examination Program, 43550-43551 [E6-12320]

Download as PDF 43550 Federal Register / Vol. 71, No. 147 / Tuesday, August 1, 2006 / Notices the extension of the Linkage fee pilot until July 31, 2007 will give the Exchange and the Commission further opportunity to evaluate whether such fees are appropriate. The Commission finds good cause, pursuant to Section 19(b)(2) of the Act,13 for approving the proposed rule change prior to the thirtieth day after publication of notice thereof in the Federal Register. The Commission believes that granting accelerated approval of the proposed rule change will preserve the Exchange’s existing pilot program for Linkage fees without interruption as the Exchange and the Commission further consider the appropriateness of Linkage fees. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,14 that the proposed rule change (SR–ISE–2006–38) is hereby approved on an accelerated basis for a pilot period to expire on July 31, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.15 Jill M. Peterson, Assistant Secretary. [FR Doc. E6–12273 Filed 7–31–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54214; File No. SR–NASD– 2006–082] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Revisions to the Series 22 Examination Program rwilkins on PROD1PC63 with NOTICES July 26, 2006. 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 July 14, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by NASD. NASD has designated the proposed rule change as constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or 13 15 U.S.C. 78s(b)(2). 14 Id. 15 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 20:04 Jul 31, 2006 Jkt 208001 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 receipt of this filing by the 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 NASD is filing revisions to the study outline and selection specifications for the Limited Representative—Direct Participation Programs (Series 22) examination program.5 The proposed revisions update the material to reflect changes to the laws, rules and regulations covered by the examination and to better reflect the duties and responsibilities of a direct participation programs representative. NASD is not proposing any textual changes to the ByLaws, Schedules to the By-Laws, or Rules of NASD. The revised study outline is available on NASD’s Web site (https:// www.nasd.com), at NASD, and at the Commission.6 The Series 22 selection specifications have been submitted to the Commission under separate cover with a request for confidential treatment pursuant to Rule 24b–2 under the Act.7 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. U.S.C. 78s(b)(3)(A)(i). CFR 240.19b–4(f)(1). 5 NASD also is proposing corresponding revisions to the Series 22 question bank, but based upon instruction from the Commission staff, NASD is submitting SR–NASD–2006–082 for immediate effectiveness pursuant to Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(1) thereunder, and is not filing the question bank for Commission review. See letter to Alden S. Adkins, Senior Vice President and General Counsel, NASD Regulation, from Belinda Blaine, Associate Director, Division of Market Regulation (‘‘Division’’), Commission, dated July 24, 2000. The question bank is available for Commission review. 6 Telephone conversation between Mia Zur, Special Counsel, Division, Commission, and Afshin Atabaki, Counsel, NASD, dated July 19, 2006. 7 17 CFR 240.24b–2. PO 00000 3 15 4 17 Frm 00118 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Section 15A(g)(3) of the Act 8 requires NASD to prescribe standards of training, experience, and competence for persons associated with NASD members. In accordance with that provision, NASD has developed examinations, and administers examinations developed by other self-regulatory organizations, that are designed to establish that persons associated with NASD members have attained specified levels of competence and knowledge. NASD 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. Pursuant to NASD Rule 1032(c), an associated person of a member who meets the definition of representative in NASD Rule 1031 may register with NASD as a Limited Representative— Direct Participation Programs if: (1) The individual’s activities in the investment banking and securities business are limited solely to the solicitation, purchase, and/or sale of equity interests in or debt of direct participation programs as defined in NASD Rule 1022(e)(2) and (2) the individual passes the Series 22 qualification examination. A committee of industry representatives, together with NASD staff, recently undertook a review of the Series 22 examination program. As a result of this review, NASD is proposing to make the following revisions to the study outline to reflect changes to the laws, rules and regulations covered by the examination and to better reflect the duties and responsibilities of a direct participation programs representative. NASD is proposing to add a section on SEC Form S–1 registration. NASD also is proposing to add a section on NASD Rule 2370 (Borrowing from or Lending to Customers) and a section on like-kind exchanges. In addition, NASD is proposing to revise the study outline to remove the sections on Section 4(3) (Transactions by a dealer) under the Securities Act of 1933 9 and SEC Rule 174 (Delivery of prospectus by dealers; exemptions under Section 4(3)).10 Further, NASD is proposing to remove the sections on NASD Rules 1040 (Registration of Assistant Representatives and Proctors) and 1110 (formerly Registration of 8 15 U.S.C. 78o–3(g)(3). U.S.C. 77d(3). 10 17 CFR 230.174. 9 15 E:\FR\FM\01AUN1.SGM 01AUN1 Federal Register / Vol. 71, No. 147 / Tuesday, August 1, 2006 / Notices Government Securities Principals and Representatives), as well as to remove the section on NASD Certificate of Incorporation. NASD is proposing these changes to the entire content of the Series 22 examination, including the selection specifications and question bank. The number of questions on each section of the Series 22 examination will remain the same. In addition, the number of questions on the examination will remain at 100, and candidates will continue to have 21⁄4 hours (135 minutes) to complete the exam. Also, each question will continue to count one point, and each candidate must correctly answer 70 percent of the questions to receive a passing grade. At any time within 60 days of the filing of such 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. should be submitted on or before August 22, 2006. IV. Solicitation of Comments BILLING CODE 8010–01–P 2. Statutory Basis • 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–NASD–2006–082 on the subject line. NASD believes that the proposed revisions to the Series 22 examination program are consistent with the provisions of Sections 15A(b)(6) 11 and 15A(g)(3) of the Act,12 which authorize NASD to prescribe standards of training, experience, and competence for persons associated with NASD members. rwilkins on PROD1PC63 with NOTICES 43551 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 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.15 Jill M. Peterson, Assistant Secretary. [FR Doc. E6–12320 Filed 7–31–06; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54215; File No. SR–NYSE– 2006–51] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to NYSE Rule 36 To Allow a Registered Competitive Market Maker To Call To and Receive Calls From the Booth July 26, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 • Send paper comments in triplicate B. Self-Regulatory Organization’s (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to Nancy M. Morris, Secretary, Statement on Burden on Competition notice is hereby given that on July 3, Securities and Exchange Commission, 2006, the New York Stock Exchange NASD does not believe that the Station Place, 100 F Street, NE., LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with proposed rule change will result in any Washington, DC 20549–1090. the Securities and Exchange burden on competition that is not All submissions should refer to File Commission (‘‘Commission’’) the necessary or appropriate in furtherance Number SR–NASD–2006–082. This file proposed rule change as described in of the purposes of the Act. number should be included on the subject line if e-mail is used. To help the Items I and II below, which Items have C. Self-Regulatory Organization’s been prepared by the Exchange. The Commission process and review your Statement on Comments on the Exchange filed the proposed rule change comments more efficiently, please use Proposed Rule Change Received From only one method. The Commission will pursuant to Section 19(b)(3)(A) of the Members, Participants or Others 3 4 post all comments on the Commission’s Act and Rule 19b–4(f)(6) thereunder, Written comments were neither which renders the proposal effective Internet Web site (https://www.sec.gov/ solicited nor received. upon filing with the Commission. The rules/sro.shtml). Copies of the Commission is publishing this notice to submission, all subsequent III. Date of Effectiveness of the solicit comments on the proposed rule amendments, all written statements Proposed Rule Change and Timing for change from interested persons. with respect to the proposed rule Commission Action The proposed rule change has become change that are filed with the I. Self-Regulatory Organization’s Commission, and all written effective pursuant to Section Statement of the Terms of Substance of communications relating to the 19(b)(3)(A)(i) of the Act 13 and Rule 19b– the Proposed Rule Change proposed rule change between the 4(f)(1) thereunder,14 in that the Commission and any person, other than NYSE is proposing to amend NYSE proposed rule change constitutes a Rule 36 (Communication Between stated policy, practice, or interpretation those that may be withheld from the public in accordance with the Exchange and Members’ Offices) to with respect to the meaning, provisions of 5 U.S.C. 552, will be administration, or enforcement of an allow a Registered Competitive Market available for inspection and copying in existing rule of the self-regulatory Maker (‘‘RCMM’’) to use an Exchange the Commission’s Public Reference organization. NASD proposes to authorized and provided portable Room. Copies of such filing also will be implement the revised Series 22 telephone on the Exchange Floor to call available for inspection and copying at examination program on August 15, to and receive calls from his or her the principal office of NASD. All 2006. NASD will announce the booth on the Floor, provided certain comments received will be posted implementation date in a Notice to conditions are met. without change; the Commission does Members to be published on the same not edit personal identifying date as this filing. 15 17 CFR 200.30–3(a)(12). information from submissions. You 1 15 U.S.C.78s(b)(1). should submit only information that 11 15 U.S.C. 78o–3(b)(6). 2 17 CFR 240.19b–4. you wish to make available publicly. All 12 15 U.S.C. 78o–3(g)(3). 3 15 U.S.C. 78s(b)(3)(A). 13 15 U.S.C. 78s(b)(3)(A)(i). submissions should refer to File 14 17 CFR 240.19b–4(f)(1). 4 17 CFR 240.19b–4(f)(6). Number SR–NASD–2006–082 and VerDate Aug<31>2005 20:04 Jul 31, 2006 Jkt 208001 Paper Comments PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 E:\FR\FM\01AUN1.SGM 01AUN1

Agencies

[Federal Register Volume 71, Number 147 (Tuesday, August 1, 2006)]
[Notices]
[Pages 43550-43551]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-12320]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54214; File No. SR-NASD-2006-082]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Revisions to the Series 22 Examination Program

July 26, 2006.
    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 July 14, 2006, the National Association of Securities Dealers, Inc. 
(``NASD'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by NASD. NASD 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 receipt of 
this filing by 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)(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

    NASD is filing revisions to the study outline and selection 
specifications for the Limited Representative--Direct Participation 
Programs (Series 22) examination program.\5\ The proposed revisions 
update the material to reflect changes to the laws, rules and 
regulations covered by the examination and to better reflect the duties 
and responsibilities of a direct participation programs representative. 
NASD is not proposing any textual changes to the By-Laws, Schedules to 
the By-Laws, or Rules of NASD.
---------------------------------------------------------------------------

    \5\ NASD also is proposing corresponding revisions to the Series 
22 question bank, but based upon instruction from the Commission 
staff, NASD is submitting SR-NASD-2006-082 for immediate 
effectiveness pursuant to Section 19(b)(3)(A) of the Act and Rule 
19b-4(f)(1) thereunder, and is not filing the question bank for 
Commission review. See letter to Alden S. Adkins, Senior Vice 
President and General Counsel, NASD Regulation, from Belinda Blaine, 
Associate Director, Division of Market Regulation (``Division''), 
Commission, dated July 24, 2000. The question bank is available for 
Commission review.
---------------------------------------------------------------------------

    The revised study outline is available on NASD's Web site (https://
www.nasd.com), at NASD, and at the Commission.\6\ The Series 22 
selection specifications have been submitted to the Commission under 
separate cover with a request for confidential treatment pursuant to 
Rule 24b-2 under the Act.\7\
---------------------------------------------------------------------------

    \6\ Telephone conversation between Mia Zur, Special Counsel, 
Division, Commission, and Afshin Atabaki, Counsel, NASD, dated July 
19, 2006.
    \7\ 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, 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
    Section 15A(g)(3) of the Act \8\ requires NASD to prescribe 
standards of training, experience, and competence for persons 
associated with NASD members. In accordance with that provision, NASD 
has developed examinations, and administers examinations developed by 
other self-regulatory organizations, that are designed to establish 
that persons associated with NASD members have attained specified 
levels of competence and knowledge. NASD 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78o-3(g)(3).
---------------------------------------------------------------------------

    Pursuant to NASD Rule 1032(c), an associated person of a member who 
meets the definition of representative in NASD Rule 1031 may register 
with NASD as a Limited Representative--Direct Participation Programs 
if: (1) The individual's activities in the investment banking and 
securities business are limited solely to the solicitation, purchase, 
and/or sale of equity interests in or debt of direct participation 
programs as defined in NASD Rule 1022(e)(2) and (2) the individual 
passes the Series 22 qualification examination.
    A committee of industry representatives, together with NASD staff, 
recently undertook a review of the Series 22 examination program. As a 
result of this review, NASD is proposing to make the following 
revisions to the study outline to reflect changes to the laws, rules 
and regulations covered by the examination and to better reflect the 
duties and responsibilities of a direct participation programs 
representative. NASD is proposing to add a section on SEC Form S-1 
registration. NASD also is proposing to add a section on NASD Rule 2370 
(Borrowing from or Lending to Customers) and a section on like-kind 
exchanges.
    In addition, NASD is proposing to revise the study outline to 
remove the sections on Section 4(3) (Transactions by a dealer) under 
the Securities Act of 1933 \9\ and SEC Rule 174 (Delivery of prospectus 
by dealers; exemptions under Section 4(3)).\10\ Further, NASD is 
proposing to remove the sections on NASD Rules 1040 (Registration of 
Assistant Representatives and Proctors) and 1110 (formerly Registration 
of

[[Page 43551]]

Government Securities Principals and Representatives), as well as to 
remove the section on NASD Certificate of Incorporation.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 77d(3).
    \10\ 17 CFR 230.174.
---------------------------------------------------------------------------

    NASD is proposing these changes to the entire content of the Series 
22 examination, including the selection specifications and question 
bank. The number of questions on each section of the Series 22 
examination will remain the same. In addition, the number of questions 
on the examination will remain at 100, and candidates will continue to 
have 2\1/4\ hours (135 minutes) to complete the exam. Also, each 
question will continue to count one point, and each candidate must 
correctly answer 70 percent of the questions to receive a passing 
grade.
2. Statutory Basis
    NASD believes that the proposed revisions to the Series 22 
examination program are consistent with the provisions of Sections 
15A(b)(6) \11\ and 15A(g)(3) of the Act,\12\ which authorize NASD to 
prescribe standards of training, experience, and competence for persons 
associated with NASD members.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78o-3(b)(6).
    \12\ 15 U.S.C. 78o-3(g)(3).
---------------------------------------------------------------------------

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

    The proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(i) of the Act \13\ and Rule 19b-4(f)(1) thereunder,\14\ 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. 
NASD proposes to implement the revised Series 22 examination program on 
August 15, 2006. NASD will announce the implementation date in a Notice 
to Members to be published on the same date as this filing.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(i).
    \14\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such 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 No. SR-NASD-2006-082 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NASD-2006-082. 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 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-2006-082 and should be submitted on or before August 22, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E6-12320 Filed 7-31-06; 8:45 am]
BILLING CODE 8010-01-P
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