[Federal Register Volume 62, Number 223 (Wednesday, November 19, 1997)]
[Notices]
[Pages 61857-61858]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30340]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39320; File No. SR-MSRB-97-7]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Municipal Securities
Rulemaking Board to Revise the Study Outline for the Board's Municipal
Securities Principal Qualification Examination (Test Series 53)
November 12, 1997.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on October
16, 1997, the Municipal Securities Rulemaking Board (``Board or
``MSRB'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') a proposed rule change (File No. SR-MSRB-
97-7). The proposed rule change is described in Items, I, II, and III
below, which Items have been prepared by the Board. 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
The MSRB is filing herewith a proposed rule change to revise the
study outline for the Board's Municipal Securities Principal
Qualification Examination, Test Series 53 (``Examination''). The Board
requests that the Commission delay the effectiveness of the revised
study outline until January 1, 1998, in order to provide time to modify
the Examination to reflect the changes in the study outline and for
information concerning the revised outline to be circulated to the
industry.
II. Self-Regulatory Organization's Statement of The Terms of Substance
of The Proposed Rule Change
In its filing with the Commission, the Board 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
texts of these statements may be examined at the places specified in
Item IV below. The Board 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
The Examination is the only examination a candidate may take to
qualify as a municipal securities principal. A municipal securities
principal manages, directs or supervises the municipal securities
activities of a broker, dealer or municipal securities dealer. Specific
subjects and questions have been updated from time to time in the
Examination to reflect changes in Board rules or applicable federal
regulation. The Board's Professional Qualification Advisory Committee
(``PQAC'') \1\ determined that the content
[[Page 61858]]
of the study outline should be revised to reflect additions to and
changes in Board rules since the outline was last revised. The revised
outline also provides for the inclusion of new Board rules as they are
promulgated.
---------------------------------------------------------------------------
\1\ PQAC is composed of the Representative Examination
Subcommittee and the Principal Examination Subcommittee. The
subcommittees are composed of individuals with extensive experience
in the securities industry. The committee members are employed by
securities firms and bank dealers and come from diverse geographic
locations.
---------------------------------------------------------------------------
Treatment of the following existing Board rules has changed in the
revised study outline:
Rule G-3 on professional qualifications.
Rule G-8 on books and records.
Rule G-23 on activities of financial advisors.
Rule G-34 on CUSIP numbers and new issue requirements.
Rule G-37 on political contributions and prohibitions on
municipal securities business.
Rule G-38 on consultants.
Rule G-39 on telemarketing.
The test specifications for the Examination have not been changed,
and it will remain a three-hour 100 question examination administered
by National Association of Securities Dealers Regulation, Inc.
(``NASDR'') using the PROCTOR system.
Examinations administered after January 1, 1998 will include an
exhibits book, which is a compilation of materials (e.g., syndicate
agreement, trade blotter) that a principal might employ in the conduct
of his job responsibilities, and will be used to answer certain
questions.
2. Statutory Basis
It is the Board's responsibility under Section 15B(b)(2)(A) of the
Act, to propose and adopt rules which
provide that no municipal securities broker or municipal securities
dealer shall effect any transaction in, or induce the purchase or
sale of, any municipal security unless * * * such municipal
securities broker or municipal securities dealer and every natural
person associated with such municipal securities broker or municipal
securities dealer meets such 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.
Section 15B(b)(2)(A) of the Act also provides that the Board may
appropriately classify municipal securities brokers and municipal
securities dealers and their associated personnel and require persons
in any such class to pass tests prescribed by the Board.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Board does not believe that the proposed rule change will
impose any burden on competition 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
Because the foregoing proposed rule change: (i) does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
(iii) was provided to the Commission for its review at least five days
prior to the filing date; and (iv) does not become operative for thirty
(30) days from the date of its filing on October 16, 1997, the proposed
rule change has become effective pursuant to Section 19(b)(3)(A) of the
Act and Rule 19b-4(e)(6) thereunder. In particular, the Commission
believes the proposed rule change qualifies as a ``non-controversial
filing'' in that the proposed Standards do not significantly affect the
protection of investors or the public interest and do not impose any
significant burden on competition. At any time within sixty 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. 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 submissions, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying in the
Commission's Public Reference Room. Copies of the filing will also be
available for inspection and copying at the Board's principal offices.
All submissions should refer to File No. SR-MSRB-97-7 and should be
submitted by December 10, 1997.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-30340 Filed 11-18-97; 8:45 am]
BILLING CODE 8010-01-M
