Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Revisions to the Series 23 Examination Program, 1373-1375 [E8-88]
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Federal Register / Vol. 73, No. 5 / Tuesday, January 8, 2008 / Notices
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matched against SSA’s mother’s or
father’s insurance benefit and/or
disabled widow(er)’s insurance benefit
records. If the surviving spouse is
receiving one of the above-described
Social Security benefits, he or she is not
eligible to receive the FERS
Supplementary Annuity. FERS, 5 U.S.C.
8442(f) provides that a survivor who is
entitled to a survivor’s annuity and who
meets certain other statutory
requirements shall also be entitled to a
supplementary Annuity. To be eligible
to receive a supplementary annuity for
a given month, the surviving spouse of
a deceased FERS annuitant must be
eligible for a FERS survivor annuity, be
under age 60, be an individual who
would be entitled to widow’s or
widower’s insurance benefits under the
requirements of sections 202(e) and
402(f), based on the wages and self
employment income of the deceased
annuity (determined as of the date of the
annuitant’s death, as if the survivor had
attained age 60 and otherwise satisfied
necessary requirements for widow’s or
widower’s insurance benefits. See 5
U.S.C. 8442(f)(4)(B)). The individual
must not be eligible for Social Security
mother’s or father’s insurance benefits
or disabled widow(er)’s insurance
benefits based on the deceased
annuitant’s wages and self-employment
income.
E. Privacy Safeguards and Security
The Privacy Act (5 U.S.C.
552a(o)(1)(G)), requires that each
matching agreement specify procedures
for ensuring the administrative,
technical and physical security of the
records matched and the results of such
programs. All Federal agencies are
subject to: the Federal Information
Security Management Act of 2002
(FISMA), 44 U.S.C. 3541 et seq.; related
Office of Management and Budget
(OMB) circulars and memoranda (e.g.,
OMB Circular A–130 and OMB M–06–
16); National Institute of Science and
Technology (NIST) directives; and the
Federal Acquisition Regulations (FAR)).
These laws, circulars, memoranda,
directives and regulations include
requirements for safeguarding Federal
information systems and personally
identifiable information used in Federal
agency business processes, as well as
related reporting requirements. OPM
and SSA recognize that all laws,
circulars, memoranda, directives and
regulations relating to the subject of this
agreement and published subsequent to
the effective date of this agreement must
also be implemented if mandated.
FISMA requirements apply to all
Federal contractors and organizations or
sources that possess or use Federal
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information, or that operate, use, or
have access to Federal information
systems on behalf of an agency. OPM
will be responsible for oversight and
compliance of their contractors and
agents. Both OPM and SSA reserve the
right to conduct onsite inspection to
monitor compliance with FISMA
regulations.
F. Inclusive Dates of the Match
The matching program shall become
effective upon the signing of the
agreement by both parties to the
agreement and approval of the
agreement by the Data Integrity Boards
of the respective agencies, but no sooner
than 40 days after notice of this
matching program is sent to Congress
and the Office of Management and
Budget or 30 days after publication of
this notice in the Federal Register,
whichever is later. The matching
program will continue for 18 months
from the effective date and may be
extended for an additional 12 months
thereafter, if certain conditions are met.
U.S. Office of Personnel Management.
Linda M. Springer,
Director.
[FR Doc. E8–38 Filed 1–7–08; 8:45 am]
BILLING CODE 6325–38–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57074; File No. SR–FINRA–
2007–027]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Revisions to
the Series 23 Examination Program
December 31, 2007.
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
12, 2007, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
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 substantially by FINRA.
FINRA has designated this proposal as
constituting a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule of the
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00060
Fmt 4703
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1373
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 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
FINRA is filing revisions to the study
outline and selection specifications for
the General Securities Principal Sales
Supervisor Module (Series 23)
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 individuals taking the
examination. FINRA is not proposing
any textual changes to the By-Laws,
Schedules to the By-Laws, or Rules of
FINRA.
The text of the proposed rule change
is available at https://www.finra.org, the
principal offices of FINRA, and the
Commission’s Public Reference Room.
The Series 23 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.6
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
3 15
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
5 FINRA also is proposing corresponding
revisions to the Series 23 question bank, but based
upon instruction from the Commission staff, FINRA
is submitting SR–FINRA–2007–027 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, SEC, dated July 24, 2000,
attached as Exhibit 3c to the proposed rule change.
The question bank is available for Commission
review.
6 17 CFR 240.24b–2.
4 17
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Federal Register / Vol. 73, No. 5 / Tuesday, January 8, 2008 / Notices
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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 7 requires
FINRA to prescribe standards of
training, experience, and competence
for persons associated with FINRA
members. In accordance with that
provision, FINRA has developed
examinations, and administers
examinations developed by other selfregulatory organizations, that are
designed to establish that persons
associated with FINRA members have
attained specified levels of competence
and knowledge. FINRA 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.
The Series 23 examination is a limited
qualification examination that tests a
candidate’s knowledge of securities
industry rules and regulations
pertaining to the supervision of
investment banking, securities markets
and trading as well as financial
responsibility requirements. The Series
23 examination, in combination with
the General Securities Sales Supervisor
(Series 9/10) examination, is an
acceptable qualification alternative to
the General Securities Principal (Series
24) examination for associated persons
who are required to register and qualify
as a General Securities Principal with
FINRA. The Series 23 examination
covers material from the Series 24
examination not otherwise covered
under the Series 9/10 examination.
A committee of industry
representatives, together with FINRA
staff, recently undertook a review of the
Series 23 examination program. As a
result of this review, FINRA is
proposing to make 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
individuals taking the examination.
Among other revisions, FINRA is
proposing to revise the references to the
FINRA and The NASDAQ Stock Market
LLC (‘‘NASDAQ’’) rules in the study
outline to reflect NASDAQ’s separation
from FINRA (then known as NASD). In
addition, FINRA is proposing to add
sections on SEC Regulation M–A
(Mergers and Acquisitions), SEC
Regulation S–K, SEC Regulation S–X,
SEC Regulation NMS, SEC Regulation
SHO, the Sarbanes-Oxley Act, SEC Rule
3a4–1 (Associated Persons of an Issuer
Deemed Not to Be Brokers), SEC Rule
405 (Definitions of Terms), the
NASDAQ Initial Public Offering Process
(NASDAQ Head Trader Alert 2005–096)
and NYSE Rule 392 (Notification
Requirements for Offerings of Listed
Securities). FINRA also is proposing to
add sections on NASD IM–2110–7
(Interfering With the Transfer of
Customer Accounts in the Context of
Employment Disputes) and IM–2210–6
(Requirements for the Use of Investment
Analysis Tools), as well as on NASD
Rules 2111 (Trading Ahead of Customer
Market Orders), 2290 (Fairness
Opinions), 2370 (Borrowing From or
Lending to Customers), 2441 (Net
Transactions with Customers) and 5110
(Transactions Related to Initial Public
Offerings).
FINRA is proposing to change the title
of section 1 of the study outline from
‘‘Supervision of Investment Banking
Activities’’ to ‘‘Supervision of
Investment Banking, Underwriting
Activities and Research’’ and the title of
section 4 from ‘‘Sales Supervision;
General Supervision of Employees;
Regulatory Framework of NASD’’ to
‘‘Sales Supervision and General
Supervision of Employees.’’ Further, as
a result of the revisions discussed
above, the number of questions on each
section of the study outline were
modified as follows: Supervision of
Investment Banking, Underwriting
Activities and Research, increased from
25 to 30 questions; Supervision of
Trading and Market Making Activities,
decreased from 29 to 24 questions;
Supervision of Brokerage Office
Operations, decreased from 16 to 12
questions; Sales Supervision and
General Supervision of Employees,
increased from 19 to 23 questions; and
Compliance with Financial
Responsibility Rules, no changes to the
number of questions (remains at 11
questions).
FINRA is proposing similar changes
to the Series 23 selection specifications
and question bank. The number of
questions on the Series 23 examination
will remain at 100, and candidates will
continue to have 21⁄2 hours 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
FINRA believes that the proposed
revisions to the Series 23 examination
program are consistent with the
provisions of sections 15A(b)(6) 8 and
15A(g)(3) of the Act,9 which authorize
FINRA to prescribe standards of
training, experience, and competence
for persons associated with FINRA
members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA 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 10 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. FINRA proposes to
implement the revised Series 23
examination program on February 12,
2008. FINRA will announce the
implementation date in a Regulatory
Notice to be published on December 12,
2007, the date FINRA filed SR–FINRA–
2007–27 with the Commission.
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 rulecomments@sec.gov. Please include File
9 15
U.S.C. 78o–3(g)(3).
U.S.C. 78s(b)(3)(A)(i).
11 17 CFR 240.19b–4(f)(1).
10 15
7 15
U.S.C. 78o–3(g)(3).
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U.S.C. 78o–3(b)(6).
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Federal Register / Vol. 73, No. 5 / Tuesday, January 8, 2008 / Notices
Number SR–FINRA–2007–027 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments:
[Release No. 34–57081; File No. SR–FINRA–
2007–031]
• 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–FINRA–2007–027. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of FINRA. 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 publicly available. All
submissions should refer to File
Number SR–FINRA–2007–027 and
should be submitted on or before
January 29, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–88 Filed 1–7–08; 8:45 am]
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BILLING CODE 8011–01–P
12 17
CFR 200.30–3(a)(12).
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Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Revisions to
the Series 62 Examination Program
December 31, 2007.
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
12, 2007, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
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 substantially by FINRA.
FINRA has designated this proposal 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 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
FINRA is filing revisions to the study
outline and selection specifications for
the Limited Representative—Corporate
Securities (Series 62) 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
Limited Representative—Corporate
1 15
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).
5 FINRA also is proposing corresponding
revisions to the Series 62 question bank, but based
upon instruction from the Commission staff, FINRA
is submitting SR–FINRA–2007–031 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, SEC, dated July 24, 2000,
attached as Exhibit 3c to the proposed rule change.
The question bank is available for Commission
review.
2 17
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
1375
Securities. FINRA is not proposing any
textual changes to the By-Laws,
Schedules to the By-Laws, or Rules of
FINRA.
The text of the proposed rule change
is available at www.finra.org, the
principal offices of FINRA, and the
Commission’s Public Reference Room.
The Series 62 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.6
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA 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 7 requires
FINRA to prescribe standards of
training, experience, and competence
for persons associated with FINRA
members. In accordance with that
provision, FINRA has developed
examinations, and administers
examinations developed by other selfregulatory organizations, that are
designed to establish that persons
associated with FINRA members have
attained specified levels of competence
and knowledge. FINRA 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(e), each
associated person of a member who is
included within the definition of
representative in NASD Rule 1031(b)
may register with FINRA as a Limited
Representative—Corporate Securities if:
(1) The individual’s activities in the
investment banking and securities
business of the member are limited
solely to the solicitation, purchase and
sale of a ‘‘security,’’ as that term is
defined in section 3(a)(10) of the Act; (2)
the individual does not engage in any
6 17
7 15
E:\FR\FM\08JAN1.SGM
CFR 240.24b–2.
U.S.C. 78o–3(g)(3).
08JAN1
]]>Agencies
[Federal Register Volume 73, Number 5 (Tuesday, January 8, 2008)]
[Notices]
[Pages 1373-1375]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-88]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57074; File No. SR-FINRA-2007-027]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Relating to Revisions to the Series 23 Examination
Program
December 31, 2007.
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 12, 2007, Financial Industry Regulatory Authority, Inc.
(``FINRA'') (f/k/a 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 substantially by
FINRA. FINRA has designated this proposal 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 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
FINRA is filing revisions to the study outline and selection
specifications for the General Securities Principal Sales Supervisor
Module (Series 23) 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 individuals taking the examination. FINRA is
not proposing any textual changes to the By-Laws, Schedules to the By-
Laws, or Rules of FINRA.
---------------------------------------------------------------------------
\5\ FINRA also is proposing corresponding revisions to the
Series 23 question bank, but based upon instruction from the
Commission staff, FINRA is submitting SR-FINRA-2007-027 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, SEC, dated July
24, 2000, attached as Exhibit 3c to the proposed rule change. The
question bank is available for Commission review.
---------------------------------------------------------------------------
The text of the proposed rule change is available at https://
www.finra.org, the principal offices of FINRA, and the Commission's
Public Reference Room. The Series 23 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.\6\
---------------------------------------------------------------------------
\6\ 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, FINRA 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. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
[[Page 1374]]
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 \7\ requires FINRA to prescribe
standards of training, experience, and competence for persons
associated with FINRA members. In accordance with that provision, FINRA
has developed examinations, and administers examinations developed by
other self-regulatory organizations, that are designed to establish
that persons associated with FINRA members have attained specified
levels of competence and knowledge. FINRA 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78o-3(g)(3).
---------------------------------------------------------------------------
The Series 23 examination is a limited qualification examination
that tests a candidate's knowledge of securities industry rules and
regulations pertaining to the supervision of investment banking,
securities markets and trading as well as financial responsibility
requirements. The Series 23 examination, in combination with the
General Securities Sales Supervisor (Series 9/10) examination, is an
acceptable qualification alternative to the General Securities
Principal (Series 24) examination for associated persons who are
required to register and qualify as a General Securities Principal with
FINRA. The Series 23 examination covers material from the Series 24
examination not otherwise covered under the Series 9/10 examination.
A committee of industry representatives, together with FINRA staff,
recently undertook a review of the Series 23 examination program. As a
result of this review, FINRA is proposing to make 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 individuals taking the examination.
Among other revisions, FINRA is proposing to revise the references
to the FINRA and The NASDAQ Stock Market LLC (``NASDAQ'') rules in the
study outline to reflect NASDAQ's separation from FINRA (then known as
NASD). In addition, FINRA is proposing to add sections on SEC
Regulation M-A (Mergers and Acquisitions), SEC Regulation S-K, SEC
Regulation S-X, SEC Regulation NMS, SEC Regulation SHO, the Sarbanes-
Oxley Act, SEC Rule 3a4-1 (Associated Persons of an Issuer Deemed Not
to Be Brokers), SEC Rule 405 (Definitions of Terms), the NASDAQ Initial
Public Offering Process (NASDAQ Head Trader Alert 2005-096) and NYSE
Rule 392 (Notification Requirements for Offerings of Listed
Securities). FINRA also is proposing to add sections on NASD IM-2110-7
(Interfering With the Transfer of Customer Accounts in the Context of
Employment Disputes) and IM-2210-6 (Requirements for the Use of
Investment Analysis Tools), as well as on NASD Rules 2111 (Trading
Ahead of Customer Market Orders), 2290 (Fairness Opinions), 2370
(Borrowing From or Lending to Customers), 2441 (Net Transactions with
Customers) and 5110 (Transactions Related to Initial Public Offerings).
FINRA is proposing to change the title of section 1 of the study
outline from ``Supervision of Investment Banking Activities'' to
``Supervision of Investment Banking, Underwriting Activities and
Research'' and the title of section 4 from ``Sales Supervision; General
Supervision of Employees; Regulatory Framework of NASD'' to ``Sales
Supervision and General Supervision of Employees.'' Further, as a
result of the revisions discussed above, the number of questions on
each section of the study outline were modified as follows: Supervision
of Investment Banking, Underwriting Activities and Research, increased
from 25 to 30 questions; Supervision of Trading and Market Making
Activities, decreased from 29 to 24 questions; Supervision of Brokerage
Office Operations, decreased from 16 to 12 questions; Sales Supervision
and General Supervision of Employees, increased from 19 to 23
questions; and Compliance with Financial Responsibility Rules, no
changes to the number of questions (remains at 11 questions).
FINRA is proposing similar changes to the Series 23 selection
specifications and question bank. The number of questions on the Series
23 examination will remain at 100, and candidates will continue to have
2\1/2\ hours 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
FINRA believes that the proposed revisions to the Series 23
examination program are consistent with the provisions of sections
15A(b)(6) \8\ and 15A(g)(3) of the Act,\9\ which authorize FINRA to
prescribe standards of training, experience, and competence for persons
associated with FINRA members.
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\8\ 15 U.S.C. 78o-3(b)(6).
\9\ 15 U.S.C. 78o-3(g)(3).
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B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA 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 \10\ 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.
FINRA proposes to implement the revised Series 23 examination program
on February 12, 2008. FINRA will announce the implementation date in a
Regulatory Notice to be published on December 12, 2007, the date FINRA
filed SR-FINRA-2007-27 with the Commission.
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\10\ 15 U.S.C. 78s(b)(3)(A)(i).
\11\ 17 CFR 240.19b-4(f)(1).
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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
[[Page 1375]]
Number SR-FINRA-2007-027 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-FINRA-2007-027. 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, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of FINRA. 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 publicly available. All
submissions should refer to File Number SR-FINRA-2007-027 and should be
submitted on or before January 29, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-88 Filed 1-7-08; 8:45 am]
BILLING CODE 8011-01-P
