[Federal Register Volume 64, Number 181 (Monday, September 20, 1999)]
[Notices]
[Pages 50850-50851]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24350]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41858; File No. SR-NASD-99-38]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the National Association of
Securities Dealers, Inc., To Increase the Examination Development Fee
Payable to the New York Stock Exchange, Inc.
September 10, 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 August 6, 1999, the National Association of Securities Dealers, Inc.
(``NASD'' or ``Association'') 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 NASD.
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 NASD proposes to amend Section 2(d) of Schedule A of the NASD
By-Laws to reflect a recent increase to the examination development fee
payable to the New York Stock Exchange, Inc. (``NYSE''), by NASD
members taking the General Securities Representative Examination
(``Series 7 Exam''). Additions are italicized; deletions are bracketed.
Section 2--Fees
* * * * *
(d) There shall be a New York Stock Exchange examination
development fee of [$40.00] $90.00 assessed as to each individual who
takes a Series 7 examination for registration as a general securities
representative. This fee is in addition to the registration and
examination fees described in paragraphs (b) and (c) respectively.
* * * * *
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 NASD 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 NASD 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 NASD proposes to amend Schedule A of its By-Laws to reflect an
increase in the NYSE Series 7 Exam development fee from $40 to $90.\3\
The NASD has represented that it collects this fee from its members in
connection with its administration of the Central Registration
Depository (``CRD'') program.\4\ After it collects the fee, the NASD
passes the proceeds of the fee to the NYSE to cover the costs of
providing qualification examination programs.
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\3\ The NYSE charges its members and member organizations an
examination development fee for each individual taking the Series 7
Exam to recover the costs of providing qualification examination
programs. On June 17, 1999, the NYSE filed a proposed rule change
with the Commission increasing its examination development fee from
$40 to $90. See Securities Exchange Act Rel. No. 41548 (June 22,
1999), 64 FR 35231 (June 30, 1999). The NYSE initially adopted in
1986 an examination development fee of $10; it increased this fee to
$40 in 1990.
\4\ Telephone conversation between Mary Dunbar, Associate
General Counsel, National Association of Securities Dealers
Regulation, Inc. (``NASDR''), and Gordon Fuller, Special Counsel,
and Matthew Boesch, Paralegal, Division of Market Regulation,
Commission (August 17, 1999).
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The NASD proposes to make the rule change effective on or about
September 15, 1999. The effective date was announced on August 18,
1999, in a Notice To Members.\5\
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\5\ Letter from Alden Adkins, Senior Vice President and General
Counsel, NASDR, to Richard Strasser, Assistant Director, Division of
Market Regulation, Commission, dated August 20, 1999.
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2. Statutory Basis
The NASD represents that it believes the proposed rule change is
consistent with the provisions of Section 15A(b)(5) \6\ of the Act,
which requires, among other things, that the Association's rules must
provide for the equitable allocation of reasonable dues, fees, and
other charges among members and issuers and other persons using any
facility or system which the Association operates or controls.
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\6\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The NASD represents that it does not believe that the proposed rule
change will result in 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
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) \7\ of the Act and subparagraph (f)(2) of Rule 19b-4
\8\ thereunder in that it is a change to a due, fee, or other charge
imposed by the NASD. 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,
[[Page 50851]]
or otherwise in furtherance of the purposes of the Act.\9\
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240-19b-4(f)(2).
\9\ In reviewing this proposal, the Commission has considered
the proposal's 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 proposed rule
change 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
NASD. All submissions should refer to file No. SR-NASD-99-38 and should
be submitted by October 12, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-24350 Filed 9-16-99; 8:45 am]
BILLING CODE 8010-01-M
