Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Revisions to the Series 72 Examination Program, 1389-1390 [E8-93]

Download as PDF Federal Register / Vol. 73, No. 5 / Tuesday, January 8, 2008 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57080; File No. SR–FINRA– 2007–032] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Revisions to the Series 72 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— Government Securities (Series 72) 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 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 72 question bank, but based upon instruction from the Commission staff, FINRA is submitting SR–FINRA–2007–032 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. pwalker on PROD1PC71 with NOTICES 2 17 VerDate Aug<31>2005 17:32 Jan 07, 2008 Jkt 214001 Representative—Equity Trader. 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 72 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(g), 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—Government 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 ‘‘government securities,’’ as that term is defined in Sections 3(a)(42)(A) through (C) of the Act, for the account 6 17 7 15 PO 00000 CFR 240.24b–2. U.S.C. 78o–3(g)(3). Frm 00076 Fmt 4703 of a broker-dealer or public customer; and (2) the individual passes the Series 72 qualification examination. A committee of industry representatives, together with FINRA staff, recently undertook a review of the Series 72 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 a Limited Representative—Government Securities. Among other revisions, FINRA is proposing to add sections on NASD IM– 2210–6 (Requirements for the Use of Investment Analysis Tools), NASD Rule 2370 (Borrowing From or Lending to Customers) and NASD Rule 2790 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings). FINRA is proposing to change the title of Section 3 of the study outline from ‘‘Other Related Securities and Financial Instruments’’ to ‘‘Related Securities and Financial Instruments’’ and the title of Section 5 from ‘‘Legal Considerations’’ to ‘‘Securities Industry Regulations and Legal Considerations.’’ Further, as a result of the revisions discussed above, the number of questions on each section of the study outline was modified as follows: Government Securities, decreased from 25 to 22 questions; Mortgaged-Backed Securities, no changes to the number of questions (remains at 25 questions); Related Securities and Financial Instruments, no changes to the number of questions (remains at 9 questions); Economic Activity, Government Policy and the Behavior of Interest Rates, decreased from 16 to 13 questions; Securities Industry Regulations and Legal Considerations, increased from 10 to 15 questions; and Customer Considerations, increased from 15 to 16 questions. FINRA is proposing similar changes to the Series 72 selection specifications and question bank. The number of questions on the Series 72 examination will remain at 100, and candidates will continue to have 3 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 72 examination program are consistent with the provisions of Sections 15A(b)(6) 8 and 8 15 Sfmt 4703 1389 E:\FR\FM\08JAN1.SGM U.S.C. 78o–3(b)(6). 08JAN1 1390 Federal Register / Vol. 73, No. 5 / Tuesday, January 8, 2008 / Notices 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. Number SR–FINRA–2007–032 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–57068; File No. SR– NASDAQ–2007–093] • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. pwalker on PROD1PC71 with NOTICES All submissions should refer to File Number SR–FINRA–2007–032. This file number should be included on the subject line if e-mail is used. To help the C. Self-Regulatory Organization’s Statement on Comments on the Commission process and review your Proposed Rule Change Received From comments more efficiently, please use Members, Participants or Others only one method. The Commission will post all comments on the Commission’s Written comments were neither Internet Web site (https://www.sec.gov/ solicited nor received. rules/sro.shtml). Copies of the III. Date of Effectiveness of the submission, all subsequent Proposed Rule Change and Timing for amendments, all written statements Commission Action with respect to the proposed rule The proposed rule change has become change that are filed with the effective pursuant to Section Commission, and all written 19(b)(3)(A)(i) of the Act 10 and Rule 19b– communications relating to the 11 in that the 4(f)(1) thereunder, proposed rule change between the proposed rule change constitutes a Commission and any person, other than stated policy, practice, or interpretation those that may be withheld from the with respect to the meaning, public in accordance with the administration, or enforcement of an provisions of 5 U.S.C. 552, will be existing rule of the self-regulatory available for inspection and copying in organization. FINRA proposes to the Commission’s Public Reference implement the revised Series 72 Room, 100 F Street, NE., Washington, examination program on February 12, DC 20549, on official business days 2008. FINRA will announce the between the hours of 10 a.m. and 3 p.m. implementation date in a Regulatory Notice to be published on December 12, Copies of such filing also will be 2007, the date FINRA filed SR–FINRA– available for inspection and copying at 2007–32 with the Commission. the principal office of FINRA. All At any time within 60 days of the comments received will be posted filing of the proposed rule change, the without change; the Commission does Commission may summarily abrogate not edit personal identifying such rule change if it appears to the information from submissions. You Commission that such action is should submit only information that necessary or appropriate in the public you wish to make publicly available. All interest, for the protection of investors, submissions should refer to File or otherwise in furtherance of the Number SR–FINRA–2007–032 and purposes of the Act. should be submitted on or before IV. Solicitation of Comments January 29, 2008. Interested persons are invited to For the Commission, by the Division of submit written data, views, and Trading and Markets, pursuant to delegated arguments concerning the foregoing, authority.12 including whether the proposed rule Florence E. Harmon, change is consistent with the Act. Deputy Secretary. Comments may be submitted by any of [FR Doc. E8–93 Filed 1–7–08; 8:45 am] 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 BILLING CODE 8011–01–P Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Nasdaq’s Rule 7033 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 19, 2007, The NASDAQ Stock Market LLC (‘‘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 substantially by Nasdaq. Nasdaq has designated this proposal as one that is concerned solely with the administration of the self-regulatory organization under Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(3) 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 Nasdaq is filing with the Commission a proposed rule change to correct certain errors in the rule manual regarding fees charged for the Mutual Fund Quotation Service (‘‘MFQS’’). The text of the proposed rule change is available at https:// www.nasdaq.complinet.com, the principal offices of the Exchange, and the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. Nasdaq has prepared summaries, set forth in Sections A, B, and C below, of 1 15 9 15 U.S.C. 78o–3(g)(3). 10 15 U.S.C. 78s(b)(3)(A)(i). 11 17 CFR 240.19b–4(f)(1). VerDate Aug<31>2005 17:32 Jan 07, 2008 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(3). 2 17 12 17 Jkt 214001 PO 00000 CFR 200.30–3(a)(12). Frm 00077 Fmt 4703 Sfmt 4703 E:\FR\FM\08JAN1.SGM 08JAN1

Agencies

[Federal Register Volume 73, Number 5 (Tuesday, January 8, 2008)]
[Notices]
[Pages 1389-1390]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-93]



[[Page 1389]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57080; File No. SR-FINRA-2007-032]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change Relating to Revisions to the Series 72 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 Limited Representative--Government Securities 
(Series 72) 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--Equity Trader. 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 72 question bank, but based upon instruction from the 
Commission staff, FINRA is submitting SR-FINRA-2007-032 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 72 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.

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).
---------------------------------------------------------------------------

    Pursuant to NASD Rule 1032(g), 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--Government 
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 ``government securities,'' as that 
term is defined in Sections 3(a)(42)(A) through (C) of the Act, for the 
account of a broker-dealer or public customer; and (2) the individual 
passes the Series 72 qualification examination.
    A committee of industry representatives, together with FINRA staff, 
recently undertook a review of the Series 72 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 a Limited Representative--Government Securities.
    Among other revisions, FINRA is proposing to add sections on NASD 
IM-2210-6 (Requirements for the Use of Investment Analysis Tools), NASD 
Rule 2370 (Borrowing From or Lending to Customers) and NASD Rule 2790 
(Restrictions on the Purchase and Sale of Initial Equity Public 
Offerings).
    FINRA is proposing to change the title of Section 3 of the study 
outline from ``Other Related Securities and Financial Instruments'' to 
``Related Securities and Financial Instruments'' and the title of 
Section 5 from ``Legal Considerations'' to ``Securities Industry 
Regulations and Legal Considerations.'' Further, as a result of the 
revisions discussed above, the number of questions on each section of 
the study outline was modified as follows: Government Securities, 
decreased from 25 to 22 questions; Mortgaged-Backed Securities, no 
changes to the number of questions (remains at 25 questions); Related 
Securities and Financial Instruments, no changes to the number of 
questions (remains at 9 questions); Economic Activity, Government 
Policy and the Behavior of Interest Rates, decreased from 16 to 13 
questions; Securities Industry Regulations and Legal Considerations, 
increased from 10 to 15 questions; and Customer Considerations, 
increased from 15 to 16 questions.
    FINRA is proposing similar changes to the Series 72 selection 
specifications and question bank. The number of questions on the Series 
72 examination will remain at 100, and candidates will continue to have 
3 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 72 
examination program are consistent with the provisions of Sections 
15A(b)(6) \8\ and

[[Page 1390]]

15A(g)(3) of the Act,\9\ which authorize FINRA to prescribe standards 
of training, experience, and competence for persons associated with 
FINRA members.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78o-3(b)(6).
    \9\ 15 U.S.C. 78o-3(g)(3).
---------------------------------------------------------------------------

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 72 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-2007-32 with the Commission.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(i).
    \11\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-FINRA-2007-032 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-2007-032. 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-2007-032 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\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-93 Filed 1-7-08; 8:45 am]
BILLING CODE 8011-01-P
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