[Federal Register Volume 64, Number 125 (Wednesday, June 30, 1999)]
[Notices]
[Page 35231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16646]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41548; File No. SR-NYSE-99-28]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the New York Stock Exchange,
Inc., to Increase the Examination Development Fee for the General
Securities Representative Examination (Series 7)
June 22, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 17, 1999, the New York Stock Exchange, Incorporated (``NYSE''
or ``Exchange'') 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 Exchange. The
Exchange has designated this proposal as one establishing or changing a
due, fee, or other charge imposed by the NYSE under Section
19(b)(3)(A)(ii) of the Act,\3\ which renders the proposal effective
upon filing with the Commission. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to increase from $40 to $90 the examination
development fee for the General Securities Representative Examination
(``Series 7 Exam''). The fee will be charged to members and member
organizations for each person who applies to take the Series 7 Exam.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with Commission, the Exchange 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 Exchange 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 initial exam development fee of $10 was adopted in 1986 and was
intended to offset in part the costs of providing qualification
examination programs by the Exchange. Prior to 1986 the Exchange
received no fees to cover such expenses. In 1990, the fee was increased
from $10 to $40.
The Exchange proposes to increase the fee to $90 to offset, in
part, the costs of qualification examination and other sales practice
related services provided by the Exchange. These costs include industry
meetings, manpower, supplies, overhead, and other expenses associated
with developing and maintaining the examination as well as costs to
maintain the Exchange's Sales Practice Review Program including, but
not limited to, field examinations. The development fee increase would
also be used for the implementation of enhancements to the Series 7
Exam program which will ensure that the examination continues to
reflect sound psychometric principles as well as employs up-to-date
technology.
2. Statutory Basis
The statutory basis for the proposed rule change is Section 6(b)(4)
of the Act,\4\ which requires the rules of an exchange to provide for
the equitable allocation of reasonable dues fees, and other charges
among the members, issuers and other persons using its services.
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\4\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believe that the proposed rule change will not impose
any 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
Comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The proposed rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \5\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\6\ because it involves a due, fee, or other charge. At any
time within 60 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 furthermore
of the purposes of the Act.\7\
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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(f)(2).
\7\ In reviewing this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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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 proposal is
consistent with the Act. Persons making written submissions should file
six copies thereof with the Secretary, Securities and Exchange
Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 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 inspection and copying in the Commission's
Public Reference Room. Copies of such filing will also be available for
inspection and copying at the principal office of the Exchange. All
submissions should refer to file number SR-NYSE-99-28, and should be
submitted by July 21, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-16646 Filed 6-29-99; 8:45 am]
BILLING CODE 8010-01-M
