[Federal Register Volume 60, Number 204 (Monday, October 23, 1995)]
[Notices]
[Pages 54401-54403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26185]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36378; International Series Release No. 869; File No.
SR-NYSE-95-29]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the New York Stock Exchange, Inc. Relating to the
Specifications and Content Outline for the Canadian Module of the
General Securities Registered Representative Examination (Series 37)
October 16, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on September 18, 1995, the
New York Stock Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
[[Page 54402]]
change as described in Items I, II, and III below, which Items have
been prepared by the self-regulatory organization. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange has filed with the Commission specifications and a
content outline for a Canadian Module of the General Securities
Registered Representative Examination (Series 37).
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 self-regulatory organization
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 self-regulatory organization
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
Presently, registered representatives who already are qualified to
conduct business in Canada and who wish to sell securities in the
United States must qualify as registered representatives in the U.S. by
successfully completing the General Securities Registered
Representative Examination (Series 7). Likewise, U.S. qualified
registered representatives desiring to conduct securities business in
Canada must satisfy Canadian requirements by passing the New Entrants
Exam. The Canadian securities authorities and member organizations of
the NYSE have expressed concern regarding the duplication of
qualification examination requirements. To address this concern, the
Canadian Securities Institute,\2\ in conjunction with the Investment
Dealers Association of Canada, has developed a shortened examination
module for U.S. qualified registered representatives (e.g., Series 7)
seeking to conduct business with Canadian citizens. The module covers
subject matter unique to the Canadian securities business.
Correspondingly, the Exchange has developed the Canadian Module of the
General Securities Registered Representative Examination (Series 37) as
a subset of the General Securities Registered Representative
Examination (Series 7) to test the Canadian registered representatives'
knowledge of U.S. securities laws, markets, investment products, and
sales practices.
\2\ The Canadian Securities Institute is responsible for
developing course materials, test materials, and qualification
examinations for prospective Canadian registered representatives.
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To determine the applicable Series 7 content areas that should be
covered in the qualification examinations for Canadian registered
representatives, the Exchange's staff conducted a thorough review of
The Canadian Securities Course textbook, the Registered Representative
Conduct and Practices Handbook, and had discussions with the staff of
the Canadian Securities Institute. Through this review, the Exchange's
staff identified for inclusion in the Series 37 module those topics
that are included in the Series 7 Examination but are not covered, or
are not covered in sufficient detail, in the Canadian materials. As a
result, the module consists of 90 questions covering subject matter
that is unique to the U.S. The topics are weighted in the module to
correspond to the relative emphasis given these topics in the Series 7
Examination. For Canadian registered representatives who hold the
additional Canadian license to sell options, the U.S. module would not
contain the 45 questions pertaining to options and thus, would consist
of 45 questions.
Canadian qualified registered representatives in good standing
applying to become registered with Exchange member organizations can
satisfy the Exchange's examination requirements by obtaining a passing
score on the Series 37 module. In addition, the Exchange represents
that the National Association of Securities Dealers, Inc. (``NASD'')
will submit a proposal to the Commission that would amend the NASD's
rules such that the Series 37 would satisfy the NASD's qualification
requirements. Canadian representatives seeking to sell municipal
securities, however, will be required to pass the standard Series 7 or
the Series 37 plus the Series 52 (Municipal Securities Representative
Examination).
Since 1991, the Exchange has provided a similar, 90-question
qualification vehicle for United Kingdom approved registered
representatives wishing to sell securities in the United States, the
Limited Registered Representative Examination (Series 17).\3\ The
Canadian module has been developed following procedures similar to
those used for the Series 17 Examination.
\3\ Securities Exchange Act Release No. 27967 (May 1, 1990), 55
FR 19131 (approving File No. SR-NYSE-89-22).
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2. Statutory Basis
The statutory basis for the Series 37 Examination is Section
6(c)(3)(B) \4\ of the Act. Under this section, it is the Exchange's
responsibility to prescribe standards of training, experience, and
competence for persons associated with Exchange members and member
organizations. Pursuant to this statutory obligation, the Exchange has
developed examinations that are administered to establish that persons
associated with Exchange members and member organizations have attained
specified levels of competence and knowledge.
\4\ 15 U.S.C. 78f(c)(3)(B).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the proposed rule change will impose no
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
The Exchange has neither solicited nor received written comments.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the publication of this notice in the Federal
Register or within such other period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve the proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
Copies of the submission, all subsequent amendments, all written
statements
[[Page 54403]]
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 at the
Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such filing also will be available for
inspection and copying at the principal office of the New York Stock
Exchange. All submissions should refer to File No. SR-NYSE-95-29 and
should be submitted by November 13, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-26185 Filed 10-20-95; 8:45 am]
BILLING CODE 8010-01-M
