[Federal Register Volume 61, Number 218 (Friday, November 8, 1996)]
[Notices]
[Pages 57937-57938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28699]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37897; File No. SR-PSE-96-32]
Self-Regulatory Organizations; the Pacific Stock Exchange
Incorporated; Order Granting Approval to Proposed Rule Change Relating
to Its Rules on Telephone Solicitations
October 30, 1996.
On August 27, 1996, the Pacific Stock Exchange Incorporated
(``PSE'' or ``Exchange'') submitted to the Securities and Exchange
Commission (``SEC''or ``Commission''), pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to adopt new Rule 9.20(b) and to
add a commentary thereunder with respect to
[[Page 57938]]
the meaning and administration of proposed Rule 9.20(b).
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\1\ 15 U.S.C. Sec. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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The proposed rule change was published for comment in Securities
Exchange Act Release No. 37703 (Sept. 19, 1996), 61 FR 50527 (Sept. 26,
1996). No comments were received on the proposal.
I. Background
In 1994, an industry Task Force, comprised of representatives from
industry regulatory and self-regulatory organizations, was formed to
review broker-dealer telemarketing practices and compliance with the
Telephone Consumer Protection Act of 1991 (``TCPA''), as well as with
the FCC rules and regulations which implemented that law. The TCPA and
FCC rules address telemarketing practices and the rights of telephone
consumers. One of the requirements contained in this regulatory
framework is that businesses, including broker-dealers, that make
telephone solicitations to residential telephone subscribers institute
written policies and have procedures in place for maintaining ``do-not-
call'' lists.
II. Description of the Proposal
The proposed rule would require members and member organizations
that engage in telephone solicitations to maintain a centralized list
of persons who do not wish to receive telephone solicitations, and to
refrain from making telephone solicitations to persons named on such
list. The NYSE, NASD, the CBOE, and the AMEX also adopted similar
rules.\3\ The proposal also would add a commentary to serve as a
reminder that members and member organizations are subject to
compliance with the relevant Federal Communications Commission
(``FCC'') and Commission Rules relating to telemarketing practices.
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\3\ See Securities Exchange Act Release Nos. 35821 (June 7,
1995), 60 FR 31337 (approving File No. SR-NYSE-95-11); 35831 (June
9, 1995), 60 FR 31527 (approving File No. SR-NASD-95-13); and 36588
(Dec. 13, 1995), 60 FR 56624 (approving File No. SR-CBOE-95-63); and
36748 (Jan. 19, 1996), 61 FR 2556 (approving File No. SR-AMEX-96-
01).
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III. Discussion
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange, and, in
particular, with the requirements of Section 6(b).\4\ In particular,
the Commission believes that the proposal is consistent with the
Section 6(b)(5) requirements that the rules of an exchange be designed
to promote just and equitable principles of trade, to prevent
fraudulent and manipulative acts, and, in general, to protect investors
and the public, by addressing the practices of Exchange members and
member organizations who make telemarketing calls. The purpose of the
proposal is to prevent members and member organizations from engaging
in manipulative acts, such as persistently calling investors who have
expressed a desire not to receive telephone solicitations. The
Commission believes that by requiring members and member organizations
to maintain centralized do-not-call lists, members of the public who
have indicated a desire not to receive telemarketing calls will be
protected against abusive telemarketing practices. The Commission also
believes that the proposed commentary reminds members and member
organizations that they are subject to the requirements of the rules of
the FCC and the Commission relating to telemarketing practices and the
rights of telephone consumers.
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\4\ 15 U.S.C. Sec. 78s(b).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\5\ that the proposed rule change (SR-PSE-96-32) is approved.
\5\ 15 U.S.C. Sec. 78f(b)(2).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 96-28699 Filed 11-7-96; 8:45 am]
BILLING CODE 8010-01-M
