[Federal Register Volume 60, Number 250 (Friday, December 29, 1995)]
[Notices]
[Pages 67385-67386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31508]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36629; International Series Release No. 909; File No.
SR-NYSE-95-29]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Order Granting Approval to Proposed Rule Change and Notice of Filing
and Order Granting Accelerated Approval of Amendments No. 1 and 2
Relating to the Specifications and Content Outline for the Canadian
Module of the General Securities Registered Representative Examination
(Series 37 and Series 38)
December 21, 1995.
I. Introduction
On September 18, 1995, the New York Stock Exchange, Inc. (``NYSE''
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 a Canadian module of the
General Securities Registered Representative Examination.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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The proposed rule change was published for comment in the Federal
Register on October 23, 1995.\3\ No comments were received on the
proposal. Amendment No. 1 \4\ was filed on November 2, 1995. Amendment
No. 2 \5\ was filed on December 19, 1995. This order approves the
proposal, including Amendments No. 1 and 2 on an accelerated basis.
\3\ Securities Exchange Act Release No. 36378 (Oct. 16, 1995),
60 FR 54401.
\4\ Amendment No. 1 confirmed that the Exchange has procedures
in place that ensure the module remains current in view of industry
changes in the United States as well as Canada, and it assigned
separate series numbers to the two examinations contained in the
module. See Letter dated November 1, 1995, from James E. Buck,
Senior Vice President and Secretary, NYSE, to Glen Barrentine, Team
Leader, SEC.
\5\ Amendment No. 2 broadened the scope of the module slightly
by adding some subtopics to it. See letter dated December 15, 1995,
from James E. Buck, Senior Vice President and Secretary, NYSE, to
Glen Barrentine, Team Leader, SEC.
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II. Description of the Proposal
Presently, registered representatives who are already 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). In an effort to reduce redundant
qualification requirements, the Exchange has developed a Canadian
module of the Series 7 which consists of two examinations, the Series
37 and the Series 38. As a subset of the Series 7, these examinations
cover subject matter that is not covered, or is not covered in
sufficient detail, on the Canadian qualification examinations. The
Series 37 is for Canadian registered representatives who hold the
additional Canadian license to sell options. This examination contains
only 45 questions because it excludes questions pertaining to options.
All other Canadian registered representatives must pass the Series 38.
This is a 90 question examination that includes questions concerning
options.
To become registered with the Exchange, qualified Canadian
registered representatives in good standing with the Canadian
securities authorities would be required to obtain a passing score on
one of the two examinations contained in the Canadian module. Canadian
representatives seeking to sell municipal securities, however, would be
required to pass either the standard Series 7 or a combination of the
applicable Canadian module examination and the Series 52 (Municipal
Securities Representative Examination).
III. Discussion
After careful review, 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)(5) and
Section 6(c)(3)(B).\6\
\6\ 15 U.S.C. 78f(b)(5) and 78f(c)(3)(B).
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The Commission believes the proposal is consistent with Section
6(b)(5)\7\ because it is designed to perfect the mechanism of a free
and open market. The Canadian module of the series 7 reduces
duplicative qualification requirements and, at the same time, allows
the Exchange to ensure that the Canadian representatives wishing to
become registered with the Exchange are fully qualified. In addition,
U.S. representatives currently receive substantially reciprocal
[[Page 67386]]
treatment from the Canadian securities authorities, thus easing their
access to the Canadian market.\8\
\7\ 15 U.S.C. 78f(b)(5).
\8\ The Canadian Securities Institute, in conjunction with the
Investment Dealers Association of Canada, developed the New Entrants
Exam. The New Entrants Exam is a shortened examination module for
U.S. qualified registered representatives seeking to conduct
business with Canadian citizens.
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The Commission also believes the proposal is consistent with
Section 6(c)(3)(B)\9\ because it establishes standards of training,
experience, and competence for persons associated with Exchange members
and member organizations. The Canadian module should provide
comprehensive coverage of the topics contained in the Series 7 that are
not covered, or are not covered in sufficient detail, in the Canadian
qualification examinations. Accordingly, the Canadian module, along
with the Canadian qualification examinations, should adequately measure
the Canadian representatives' knowledge of U.S. securities laws,
markets, investment products, and sales practices.
\9\ 15 U.S.C. 78f(c)(3)(B).
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The Commission finds good cause for approving proposed Amendments
No. 1 and 2 prior to the thirtieth day after the date of publication of
notice of filing thereof in the Federal Register. Amendment No. 1
confirmed that the Exchange has procedures in place that ensure the
module remains current in view of industry changes in the United States
as well as Canada, and it assigned separate series numbers to the two
examinations contained in the module. Amendment No. 2 broadened the
scope of the Canadian module slightly to ensure that it is sufficient
to measure Canadian registered representatives' knowledge of U.S.
securities laws, markets, investment products, and sales practices.
Although Amendment No. 2 added a few subtopics, the general scope of
the module did not change. For these reasons, the Commission finds good
cause for accelerating approval of Amendments No. 1 and 2.
Interested persons are invited to submit written data, views, and
arguments concerning Amendments No. 1 and 2 to the proposed rule
change. Persons making written submissions should file six copies
thereof with the Secretary, Securities and Exchange Commission, 450
Fifth Street, N.W., Washington, D.C. 20549. 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 Amendments No. 1 and 2 between the
Commission and any persons, 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 Section, 450 Fifth street, N.W., Washington, D.C. 20549.
Copies of such filing also will be available at the principal office of
the NYSE. All submissions should refer to File No. SR-NYSE-95-29 and
should be submitted by January 19, 1996.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (SR-NYSE-95-29), including
Amendments No. 1 and 2 on an accelerated basis, is approved.
\10\ 15 U.S.C. 78s(b)(2).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
\11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-31508 Filed 12-28-95; 8:45 am]
BILLING CODE 8010-01-M
