[Federal Register Volume 62, Number 159 (Monday, August 18, 1997)]
[Notices]
[Pages 44023-44024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21748]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38921; International Series Release No. IS-1096; File
No. SR-AMEX-97-26]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by American Stock Exchange, Inc.
Relating to Adoption of Foreign Examination Modules
August 11, 1997.
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 July 28, 1997, the American Stock Exchange, Inc. (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission the
proposed rule 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The American Stock Exchange, Inc. proposes to adopt certain foreign
examination modules of the General Securities Registered Representative
Examination (``Series 7''), which were developed by the New York Stock
Exchange (``NYSE''), for use by registered representatives from the
United Kingdom (``U.K.''), Canada and Japan seeking to qualify as
general securities registered representatives in the United States.
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 the
Statutory Basis for, the Proposed Rule Change
(1) Purpose
Pursuant to Commentary .03 to Exchange Rule 341, natural persons
seeking to become registered representatives must pass a qualifying
examination. The Exchange currently requires that all such persons,
including those qualified in foreign countries, including the U.K.,
Canada and Japan, pass the Series 7 examination. In order to reduce
redundant qualification requirements, the NYSE developed foreign
examination modules for the U.K. (Series 17), Canada (Series 37/38) and
Japan (Series 47). By successfully completing these modified
examinations rather than the full Series 7 examination, persons in good
standing with the securities regulators of their respective countries
may perform all of the functions permitted of a person who holds a
Series 7 registration, with the exception of selling municipal
securities. These examination modules are currently in use by the NYSE,
National Association of Securities Dealers (``NASD'') and the Chicago
Board Options Exchange (``CBOE'').\3\
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\3\ See Securities Exchange Act Release No. 27967 (May 1, 1990),
55 FR 19124 (May 8, 1990) (approving File No. SR-NYSE-89-22, Series
17); Securities Exchange Act Release No. 36629, International Series
Release No. 909 (Dec. 21, 1995), 60 FR 67385, corrected, Securities
Exchange Act Release No. 36629A, International Series Release No.
909A (Jan. 4, 1996), 61 FR 744 (Jan. 10, 1996) (approving File No.
SR-NYSE-95-29, Series 37 and Series 38); Securities Exchange Act
Release No. 36708, International Series Release No. 915 (Jan. 11,
1996), 61 FR 1808 (Jan. 23, 1996) (approving File No. SR-NYSE-95-36,
Series 47); see also Securities Exchange Act Release No. 36825 (Feb.
9, 1996), 61 FR 6052 (approving File No. SR-NASD-96-04, Series 37
and 38); Securities Exchange Act Release No. 37112 (April 12, 1996),
61 FR 17339 (approving File No. SR-NASD-96-13); Securities Exchange
Act Release No. 38274 (February 12, 1997), 62 FR 7485 (File No. SR-
CBOE-97-04),
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The Series 17 version, the Limited Registered Representative
Examination, is for U.K. registrants who have successfully completed
the basic exam of the U.K. and who are in good standing with securities
regulators in the U.K. It deletes those substantive sections of the
standard Series 7 which overlap with the U.K. examination. The Series
17 is a ninety question
[[Page 44024]]
examination dealing with U.S. securities laws, regulations, sales
practices and special products drawn from the standard Series 7
examination.
The Series 37 version is for Canadian registrants who have
successfully completed the basic core module of the Canadian Securities
Institute program. The Series 38 version is for Canadian registrants
who, in addition to having successfully completed the basic core module
of the Canadian Securities Institute program, have also successfully
completed the Canadian options and futures program. Although the
Canadian exam modules contain some overlap with the Series 7, the
Series 37 and Series 38 cover only subject matter that is not covered,
or not covered in sufficient detail, on the Canadian qualification
examination. The Series 37 has 90 questions and is 150 minutes in
duration, while the Series 38, an abbreviated version of the Series 37,
has only 45 questions and is 75 minutes in duration.\4\
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\4\ Forty-five questions pertaining to options are included in
the Series 37 but omitted from the Series 38.
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The Series 47 version is for Japanese registrants in good standing
with Japanese securities authorities, and is designed to test a
Japanese registered representative's knowledge of U.S. securities laws,
markets, investment products and sales practices. It contains 160
questions and is 240 minutes long.
(2) Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
in general and furthers the objectives of Section 6(b)(3)(B) in
particular in that it establishes standards of training, experience and
competence for persons associated with Exchange members and member
organizations. The foreign examination modules should provide
comprehensive coverage of the topics contained in the Series 7 that are
not adequately covered by the applicable foreign qualification
examination. The proposal is also consistent with Section 6(b)(5) in
that it is designed to perfect the mechanism of a free and open market
by reducing duplicative qualification requirements while ensuring that
foreign representatives seeking to become registered with the Exchange
are fully qualified.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change will impose no burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has asserted, and the Commission agrees, that the
proposed rule change (i) will not significantly affect the protection
of investors or the public interest, (ii) will not impose any
significant burden on competition, and (iii) will not become operative
for 30 days after the date of this filing. For the foregoing reasons
and because the Exchange provided at least five business days notice to
the Commission of its intent to file this proposed rule change, the
rule filing will become operative as a ``non-controversial'' rule
change under Section 19(b)(3)(A) of the Act and Rule 19b-4(e)(6)
thereunder.
At any time within 60 days of this filing, the Commission may
summarily abrogate this proposal 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, 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 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 in Washington, D.C. Copies of such
filing will also be available for inspection and copying at the
principal office of the Amex. All submissions should refer to file
number SR-AMEX-97-26 and should be submitted by September 8, 1997.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-21748 Filed 8-15-97; 8:45 am]
BILLING CODE 8010-01-M
