Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Content Outline for the Series 9/10 Examination Program, 7180-7182 [2016-02604]
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Federal Register / Vol. 81, No. 27 / Wednesday, February 10, 2016 / Notices
Street NE., Washington, DC. Written
statements may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Statements
[Release No. 34–77051; File No. SR–MSRB–
2016–02]
• Use the Commission’s Internet
submission form (https://www.sec.gov/
info/smallbus/acsec.shtml); or
• Send an email message to rulecomments@sec.gov. Please include File
Number 265–27 on the subject line; or
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to the Content Outline
for the Series 9/10 Examination
Program
Paper Statements
February 4, 2016.
• Send paper statements to Brent J.
Fields, Federal Advisory Committee
Management Officer, Securities and
Exchange Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
No. 265–27. This file number should be
included on the subject line if email is
used. To help us process and review
your statement more efficiently, please
use only one method. The Commission
will post all statements on the Advisory
Committee’s Web site (https://
www.sec.gov/spotlight/acsecspotlight.shtml).
Statements also will be available for
Web site viewing and printing in the
Commission’s Public Reference Room,
100 F Street NE., Washington, DC
20549, on official business days
between the hours of 10:00 a.m. and
3:00 p.m. All statements received will
be posted without change; we do not
edit personal identifying information
from submissions. You should submit
only information that you wish to make
available publicly.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’ or ‘‘Exchange Act’’) 1 and Rule
19b–4 thereunder,2 notice is hereby
given that on January 22, 2016, the
Municipal Securities Rulemaking Board
(the ‘‘MSRB’’ or ‘‘Board’’) 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 the MSRB. The MSRB 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’’ under
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.
Julie
The MSRB filed with the Commission
proposed revisions to the content
outline for the Municipal Securities
Sales Principal (Series 9/10)
examination program (the ‘‘proposed
rule change’’). The MSRB proposes to
implement the revised Series 9/10
examination program on March 7, 2016.
The proposed revisions update the
material to reflect changes to the laws,
rules and regulations covered by the
examination and to incorporate the
functions and associated tasks currently
performed by a Municipal Securities
Sales Principal. In addition, the Board is
proposing to make changes to the format
of the content outline. The MSRB is not
proposing in this filing any textual
change to its rules.5
FOR FURTHER INFORMATION CONTACT:
Z. Davis, Senior Special Counsel, at
(202) 551–3460, Office of Small
Business Policy, Division of Corporation
Finance, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–3628.
In
accordance with Section 10(a) of the
Federal Advisory Committee Act, 5
U.S.C.—App. 1, and the regulations
thereunder, Keith Higgins, Designated
Federal Officer of the Committee, has
ordered publication of this notice.
asabaliauskas on DSK9F6TC42PROD with NOTICES2
SUPPLEMENTARY INFORMATION:
Dated: February 5, 2016.
Brent J. Fields,
Committee Management Officer.
[FR Doc. 2016–02658 Filed 2–9–16; 8:45 am]
BILLING CODE 8011–01–P
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
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 The Financial Industry Regulatory Authority
(‘‘FINRA’’) filed changes to the Series 9/10 question
2 17
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The text of the proposed rule change
is available on the MSRB’s Web site at
www.msrb.org/Rules-andInterpretations/SEC-Filings/2016Filings.aspx, at the MSRB’s principal
office, and at 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
MSRB included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The MSRB 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
Background
The MSRB has established a
professional qualifications program that
prescribes standards of training,
experience, and competency for brokers,
dealers and municipal securities dealers
(collectively, ‘‘dealers’’) and their
associated persons. Section 15B(b)(2)(A)
of the Act requires associated persons of
dealers to meet such standards of
training, experience, competence, and
such other qualifications as the MSRB
finds necessary or appropriate in the
public interest or for the protection of
investors and municipal entities or
obligated persons.6 The MSRB has
developed examinations that are
designed to establish that persons
associated with dealers that effect
transactions in municipal securities and
municipal advisors who engage in
municipal advisory activities have
attained specified levels of competence
and knowledge. The content outline for
each examination serves as a guide to
the subject matter tested on the
examination and provides learning
objectives associated with each subject
matter to assist candidates in preparing
for each examination. Each content
outline also provides sample questions
similar to the type of questions that may
be found on the examination. The
bank and selection specifications with the SEC on
December 23, 2015. See Release No. 34–76812
(December 31, 2015), 81 FR 834 (January 7, 2016)
(File No. SR–FINRA–2015–058).
6 Section 15B(b)(2)(A)(iii) of the Act, 15 U.S.C.
78o–4(b)(2)(A)(iii).
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Federal Register / Vol. 81, No. 27 / Wednesday, February 10, 2016 / Notices
asabaliauskas on DSK9F6TC42PROD with NOTICES2
arrangement of the subject matter in the
content outline reflects the various job
functions typically performed within a
dealer by an individual with that
qualification. The MSRB periodically
reviews the content outline for each
examination to determine whether
revisions are necessary or appropriate in
view of changes pertaining to the
subject matter covered by the
examination.7
MSRB Rule G–3(c) defines an
individual associated with a dealer
whose supervisory activities with
respect to municipal securities are
limited exclusively to supervising sales
to and purchases from customers of
municipal securities as a Municipal
Securities Sales Principal. Pursuant to
MSRB Rule G–3(c), every Municipal
Securities Sales Principal is required to
take and pass the General Securities
Sales Supervisor Qualification
Examination prior to acting in such
capacity.8
In consultation with a committee of
industry representatives and FINRA, the
MSRB participated in a review of the
Series 9/10 examination program. As a
result of this review, the MSRB is
proposing to make revisions to the
content outline to reflect changes to the
laws, rules and regulations covered by
the examination and to incorporate the
functions and associated tasks
performed by a Municipal Securities
Sales Principal.
Current Content Outline
The current content outline is divided
into six sections. The following are the
six sections and the number of
questions associated with each of the
sections, denoted Section 1 through
Section 6:
1. Hiring, Qualifications, and
Continuing Education, 9 questions;
2. Supervision of Accounts and Sales
Activities, 94 questions;
3. Conduct of Associated Persons, 14
questions;
4. Recordkeeping Requirements, 8
questions;
5. Municipal Securities Regulation, 20
questions;
6. Options Regulation, 55 questions.
Each section also includes the
applicable laws, rules and regulations
associated with that section. The current
content outline also includes a preface
(addressing, among other things, the
purpose, administration and scoring of
the examination), sample questions and
reference materials.
7 On occasion, this review may be conducted in
coordination with FINRA or other self-regulatory
organizations.
8 The General Securities Sales Principal is
defined in NASD Rule 1022(g).
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Proposed Revisions
The MSRB is proposing to divide the
content outline into two parts with eight
major job functions that are performed
by a Municipal Securities Sales
Principal. The following are the two
parts, each with four major job
functions, denoted as Parts 1 and 2 with
Function 1 through Function 4,
respectively, with the associated
number of questions:
Part 1:
Function 1: Supervise Associated
Persons and Personnel Management
Activities, 28 questions;
Function 2: Supervise the Opening
and Maintenance of Customer Accounts,
49 questions;
Function 3: Supervise Sales Practices
and General Trading Activities, 52
questions;
Function 4: Supervise
Communications with the Public, 16
questions.
Part 2:
Function 1: Supervise the Opening
and Maintenance of Customer Options
Accounts, 18 questions;
Function 2: Supervise Sales Practices
and General Options Trading Activities,
19 questions;
Function 3: Supervise Options
Communications, 5 questions;
Function 4: Supervise Associated
Persons and Personnel Management
Activities, 13 questions.
The MSRB is proposing to adjust the
number of questions assigned to each
major job function to ensure that the
overall examination better reflects the
key tasks performed by a Municipal
Securities Sales Principal. The
allocation of questions on the revised
Series 9/10 examination will place
greater emphasis on key tasks such as
supervision of registered persons, sales
practices and compliance. Each function
also includes specific tasks describing
activities associated with performing
that function. In Part 1, there are five
tasks (1.1–1.5) associated with Function
1; four tasks (2.1–2.4) associated with
Function 2; five tasks (3.1–3.5)
associated with Function 3; and four
tasks (4.1–4.4) associated with Function
4. In Part 2, there are three tasks (1.1–
1.3) associated with Function 1; four
tasks (2.1–2.4) associated with Function
2; three tasks (3.1–3.3) associated with
Function 3; and one task (4.1) associated
with Function 4. Further, the content
outline lists the knowledge required to
perform each function and associated
tasks (e.g., types of retail
communications, required approvals).
In addition, where applicable, the
content outline lists the laws, rules and
regulations a candidate is expected to
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7181
know to perform each function and
associated tasks. These include the
applicable MSRB Rules (e.g., MSRB
Rule G–27(e)). A job analysis study was
conducted of General Securities Sales
Supervisors that are qualified with the
9/10 examination, which included the
use of a survey, in developing each
function and associated tasks typically
performed in the conduct of their
activity and, as a result, updating the
required knowledge set forth in the
revised content outline. The functions
and associated tasks, which appear in
the revised content outline for the first
time, reflect the day-to-day activities of
a General Securities Sales Supervisor.
The MSRB is also proposing to revise
the content outline to reflect changes to
the laws, rules and regulations covered
by the examination. Among other
revisions, certain revisions are being
made to reflect the adoption of rules in
the consolidated FINRA rulebook (e.g.,
NASD Rule 2310 (Recommendations to
Customers (Suitability), NASD Rule
2212 (Telemarketing) and NASD Rule
3110 (Books and Records) were adopted
as FINRA Rule 2111 (Suitability),
FINRA Rule 3230 (Telemarketing) and
FINRA Rule 4510 Series (Books and
Records Requirements), respectively).
Finally, the MSRB is proposing to
make changes to the format of the
content outline, including the preface,
sample questions and reference
materials. Proposed changes include: (1)
Adding a table of contents; (2) providing
more details regarding the purpose of
the examination; (3) providing more
details on the application procedures;
(4) providing more details on the
development and maintenance of the
content outline and examination; (5)
explaining that the passing scores are
established by FINRA staff, in
consultation with a committee of
industry representatives, using a
standard setting procedure, and that a
statistical adjustment process known as
equating is used in scoring exams; and
(6) noting that each candidate will
receive a report at the end of the test
session that will indicate a pass or fail
status and include a score profile listing
the candidate’s performance on each
major content area covered on the
examination. The number of questions
on the Series 9/10 examination will
remain at 200 multiple-choice questions
(55 on the Series 9 and 145 on the Series
10). Candidates will continue to have 90
minutes to complete the Series 9
examination and 240 minutes to
complete the Series 10 examination.
The passing score for the Series 9 is 70
percent and the passing score for the
Series 10 is 70 percent. These are
unchanged.
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Federal Register / Vol. 81, No. 27 / Wednesday, February 10, 2016 / Notices
Availability of the Content Outline
The revised Series 9/10 content
outline will replace the current content
outline on FINRA’s Web site.9
2. Statutory Basis
The MSRB believes that the proposed
rule change is consistent with the
provisions of Section 15B(b)(2)(A) of the
Act,10 which authorizes the MSRB, in
part, to prescribe for associated persons
of dealers ‘‘standards of training,
experience, competence, and such other
qualifications as the Board finds
necessary or appropriate in the public
interest or for the protection of investors
and municipal entities or obligated
persons.’’
The MSRB believes that the proposed
rule change is consistent with the
provisions of Section 15(B)(b)(2)(A) of
the Act 11 in that the revisions will
ensure that certain key concepts and
rules are tested on the Series 9/10 in
order to test the competency of
individuals seeking to qualify as
Municipal Securities Sales Principals
with respect to their knowledge of
MSRB rules and the municipal
securities market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The MSRB 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. The updated
Series 9/10 content outline aligns with
the functions and associated tasks
currently performed by a Municipal
Securities Sales Principal and tests
knowledge of the most current laws,
rules, and regulations and skills relevant
to those functions and associated tasks.
As such, the proposed rule change
would make the examinations more
efficient and effective.
asabaliauskas on DSK9F6TC42PROD with NOTICES2
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 on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 12 and
paragraph (f)(1) of Rule 19b–4
9 See
10 15
www.finra.org/brokerqualifications/exams.
U.S.C. 78o–4(b)(2)(A).
thereunder.13 At any time within 60
days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend 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 email to rule-comments@
sec.gov. Please include File Number SR–
MSRB–2016–02 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549.
All submissions should refer to File
Number SR–MSRB–2016–02. This file
number should be included on the
subject line if email 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 Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the MSRB. 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–MSRB–
2016–02 and should be submitted on
orbefore March 2, 2016.
For the Commission, pursuant to delegated
authority.14
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–02604 Filed 2–9–16; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Interagency Task Force on Veterans
Small Business Development
U.S. Small Business
Administration (SBA).
ACTION: Interagency Task Force on
Veterans Small Business Development
Meeting notice.
AGENCY:
March 10, 2016, from 9:00 a.m.
to 12:00 p.m.
ADDRESSES: SBA Headquarters, 409 3rd
Street SW., Washington, DC 20416
Eisenhower Conference Room B,
Concourse Level.
Purpose: This public meeting is to
discuss recommendations identified by
the Interagency Task Force on Veterans
Small Business Development (IATF) to
further enable veteran entrepreneurship
policy and programs. In addition, the
Task Force will allow public comments
regarding the veteran owned small
business focus areas.
SUPPLEMENTARY INFORMATION: Pursuant
to section 10(a)(2) of the Federal
Advisory Committee Act (5 U.S.C.,
Appendix 2), SBA announces the
meeting of the IATF. The Task Force is
established pursuant to Executive Order
13540 and coordinates efforts of federal
agencies to improve capital, business
development opportunities, and preestablished federal contracting goals for
veteran owned small businesses (VOSB)
and service-disabled veteran owned
businesses (SDVOSB). The Task Force
shall coordinate administrative and
regulatory activities and develop
proposals relating to six focus areas: (1)
Access to capital (loans, surety bonding
and franchising); (2) Ensure
achievement of pre-established
contracting goals, including mentor
´ ´
protege and matching with contracting
opportunities; (3) Increase the integrity
of certifications of status as a small
business; (4) Reducing paperwork and
administrative burdens in accessing
business development and
entrepreneurship opportunities; (5)
Increasing and improving training and
DATES:
11 Id.
12 15
U.S.C. 78s(b)(3)(A).
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CFR 200.30–3(a)(12).
10FEN1
]]>Agencies
[Federal Register Volume 81, Number 27 (Wednesday, February 10, 2016)]
[Notices]
[Pages 7180-7182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02604]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77051; File No. SR-MSRB-2016-02]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change Relating to the Content Outline for the Series 9/10 Examination
Program
February 4, 2016.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\
notice is hereby given that on January 22, 2016, the Municipal
Securities Rulemaking Board (the ``MSRB'' or ``Board'') 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 the MSRB. The MSRB 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'' under 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
The MSRB filed with the Commission proposed revisions to the
content outline for the Municipal Securities Sales Principal (Series 9/
10) examination program (the ``proposed rule change''). The MSRB
proposes to implement the revised Series 9/10 examination program on
March 7, 2016. The proposed revisions update the material to reflect
changes to the laws, rules and regulations covered by the examination
and to incorporate the functions and associated tasks currently
performed by a Municipal Securities Sales Principal. In addition, the
Board is proposing to make changes to the format of the content
outline. The MSRB is not proposing in this filing any textual change to
its rules.\5\
---------------------------------------------------------------------------
\5\ The Financial Industry Regulatory Authority (``FINRA'')
filed changes to the Series 9/10 question bank and selection
specifications with the SEC on December 23, 2015. See Release No.
34-76812 (December 31, 2015), 81 FR 834 (January 7, 2016) (File No.
SR-FINRA-2015-058).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the MSRB's Web
site at www.msrb.org/Rules-and-Interpretations/SEC-Filings/2016-Filings.aspx, at the MSRB's principal office, and at 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 MSRB included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The MSRB 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
Background
The MSRB has established a professional qualifications program that
prescribes standards of training, experience, and competency for
brokers, dealers and municipal securities dealers (collectively,
``dealers'') and their associated persons. Section 15B(b)(2)(A) of the
Act requires associated persons of dealers to meet such standards of
training, experience, competence, and such other qualifications as the
MSRB finds necessary or appropriate in the public interest or for the
protection of investors and municipal entities or obligated persons.\6\
The MSRB has developed examinations that are designed to establish that
persons associated with dealers that effect transactions in municipal
securities and municipal advisors who engage in municipal advisory
activities have attained specified levels of competence and knowledge.
The content outline for each examination serves as a guide to the
subject matter tested on the examination and provides learning
objectives associated with each subject matter to assist candidates in
preparing for each examination. Each content outline also provides
sample questions similar to the type of questions that may be found on
the examination. The
[[Page 7181]]
arrangement of the subject matter in the content outline reflects the
various job functions typically performed within a dealer by an
individual with that qualification. The MSRB periodically reviews the
content outline for each examination to determine whether revisions are
necessary or appropriate in view of changes pertaining to the subject
matter covered by the examination.\7\
---------------------------------------------------------------------------
\6\ Section 15B(b)(2)(A)(iii) of the Act, 15 U.S.C. 78o-
4(b)(2)(A)(iii).
\7\ On occasion, this review may be conducted in coordination
with FINRA or other self-regulatory organizations.
---------------------------------------------------------------------------
MSRB Rule G-3(c) defines an individual associated with a dealer
whose supervisory activities with respect to municipal securities are
limited exclusively to supervising sales to and purchases from
customers of municipal securities as a Municipal Securities Sales
Principal. Pursuant to MSRB Rule G-3(c), every Municipal Securities
Sales Principal is required to take and pass the General Securities
Sales Supervisor Qualification Examination prior to acting in such
capacity.\8\
---------------------------------------------------------------------------
\8\ The General Securities Sales Principal is defined in NASD
Rule 1022(g).
---------------------------------------------------------------------------
In consultation with a committee of industry representatives and
FINRA, the MSRB participated in a review of the Series 9/10 examination
program. As a result of this review, the MSRB is proposing to make
revisions to the content outline to reflect changes to the laws, rules
and regulations covered by the examination and to incorporate the
functions and associated tasks performed by a Municipal Securities
Sales Principal.
Current Content Outline
The current content outline is divided into six sections. The
following are the six sections and the number of questions associated
with each of the sections, denoted Section 1 through Section 6:
1. Hiring, Qualifications, and Continuing Education, 9 questions;
2. Supervision of Accounts and Sales Activities, 94 questions;
3. Conduct of Associated Persons, 14 questions;
4. Recordkeeping Requirements, 8 questions;
5. Municipal Securities Regulation, 20 questions;
6. Options Regulation, 55 questions.
Each section also includes the applicable laws, rules and
regulations associated with that section. The current content outline
also includes a preface (addressing, among other things, the purpose,
administration and scoring of the examination), sample questions and
reference materials.
Proposed Revisions
The MSRB is proposing to divide the content outline into two parts
with eight major job functions that are performed by a Municipal
Securities Sales Principal. The following are the two parts, each with
four major job functions, denoted as Parts 1 and 2 with Function 1
through Function 4, respectively, with the associated number of
questions:
Part 1:
Function 1: Supervise Associated Persons and Personnel Management
Activities, 28 questions;
Function 2: Supervise the Opening and Maintenance of Customer
Accounts, 49 questions;
Function 3: Supervise Sales Practices and General Trading
Activities, 52 questions;
Function 4: Supervise Communications with the Public, 16 questions.
Part 2:
Function 1: Supervise the Opening and Maintenance of Customer
Options Accounts, 18 questions;
Function 2: Supervise Sales Practices and General Options Trading
Activities, 19 questions;
Function 3: Supervise Options Communications, 5 questions;
Function 4: Supervise Associated Persons and Personnel Management
Activities, 13 questions.
The MSRB is proposing to adjust the number of questions assigned to
each major job function to ensure that the overall examination better
reflects the key tasks performed by a Municipal Securities Sales
Principal. The allocation of questions on the revised Series 9/10
examination will place greater emphasis on key tasks such as
supervision of registered persons, sales practices and compliance. Each
function also includes specific tasks describing activities associated
with performing that function. In Part 1, there are five tasks (1.1-
1.5) associated with Function 1; four tasks (2.1-2.4) associated with
Function 2; five tasks (3.1-3.5) associated with Function 3; and four
tasks (4.1-4.4) associated with Function 4. In Part 2, there are three
tasks (1.1-1.3) associated with Function 1; four tasks (2.1-2.4)
associated with Function 2; three tasks (3.1-3.3) associated with
Function 3; and one task (4.1) associated with Function 4. Further, the
content outline lists the knowledge required to perform each function
and associated tasks (e.g., types of retail communications, required
approvals). In addition, where applicable, the content outline lists
the laws, rules and regulations a candidate is expected to know to
perform each function and associated tasks. These include the
applicable MSRB Rules (e.g., MSRB Rule G-27(e)). A job analysis study
was conducted of General Securities Sales Supervisors that are
qualified with the 9/10 examination, which included the use of a
survey, in developing each function and associated tasks typically
performed in the conduct of their activity and, as a result, updating
the required knowledge set forth in the revised content outline. The
functions and associated tasks, which appear in the revised content
outline for the first time, reflect the day-to-day activities of a
General Securities Sales Supervisor.
The MSRB is also proposing to revise the content outline to reflect
changes to the laws, rules and regulations covered by the examination.
Among other revisions, certain revisions are being made to reflect the
adoption of rules in the consolidated FINRA rulebook (e.g., NASD Rule
2310 (Recommendations to Customers (Suitability), NASD Rule 2212
(Telemarketing) and NASD Rule 3110 (Books and Records) were adopted as
FINRA Rule 2111 (Suitability), FINRA Rule 3230 (Telemarketing) and
FINRA Rule 4510 Series (Books and Records Requirements), respectively).
Finally, the MSRB is proposing to make changes to the format of the
content outline, including the preface, sample questions and reference
materials. Proposed changes include: (1) Adding a table of contents;
(2) providing more details regarding the purpose of the examination;
(3) providing more details on the application procedures; (4) providing
more details on the development and maintenance of the content outline
and examination; (5) explaining that the passing scores are established
by FINRA staff, in consultation with a committee of industry
representatives, using a standard setting procedure, and that a
statistical adjustment process known as equating is used in scoring
exams; and (6) noting that each candidate will receive a report at the
end of the test session that will indicate a pass or fail status and
include a score profile listing the candidate's performance on each
major content area covered on the examination. The number of questions
on the Series 9/10 examination will remain at 200 multiple-choice
questions (55 on the Series 9 and 145 on the Series 10). Candidates
will continue to have 90 minutes to complete the Series 9 examination
and 240 minutes to complete the Series 10 examination. The passing
score for the Series 9 is 70 percent and the passing score for the
Series 10 is 70 percent. These are unchanged.
[[Page 7182]]
Availability of the Content Outline
The revised Series 9/10 content outline will replace the current
content outline on FINRA's Web site.\9\
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\9\ See www.finra.org/brokerqualifications/exams.
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2. Statutory Basis
The MSRB believes that the proposed rule change is consistent with
the provisions of Section 15B(b)(2)(A) of the Act,\10\ which authorizes
the MSRB, in part, to prescribe for associated persons of dealers
``standards of training, experience, competence, and such other
qualifications as the Board finds necessary or appropriate in the
public interest or for the protection of investors and municipal
entities or obligated persons.''
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\10\ 15 U.S.C. 78o-4(b)(2)(A).
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The MSRB believes that the proposed rule change is consistent with
the provisions of Section 15(B)(b)(2)(A) of the Act \11\ in that the
revisions will ensure that certain key concepts and rules are tested on
the Series 9/10 in order to test the competency of individuals seeking
to qualify as Municipal Securities Sales Principals with respect to
their knowledge of MSRB rules and the municipal securities market.
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\11\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The MSRB 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. The updated Series 9/10 content
outline aligns with the functions and associated tasks currently
performed by a Municipal Securities Sales Principal and tests knowledge
of the most current laws, rules, and regulations and skills relevant to
those functions and associated tasks. As such, the proposed rule change
would make the examinations more efficient and effective.
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 on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \12\ and paragraph (f)(1) of Rule 19b-4
thereunder.\13\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
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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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(1).
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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 email to rule-comments@sec.gov. Please include
File Number SR-MSRB-2016-02 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549.
All submissions should refer to File Number SR-MSRB-2016-02. This file
number should be included on the subject line if email 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the MSRB. 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-MSRB-2016-02 and should be
submitted on or before March 2, 2016.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, pursuant to delegated authority.\14\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-02604 Filed 2-9-16; 8:45 am]
BILLING CODE 8011-01-P
