[Federal Register Volume 59, Number 134 (Thursday, July 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17099]
[[Page Unknown]]
[Federal Register: July 14, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34336; File No. SR-NYSE-94-24]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the New York Stock Exchange, Inc. Relating to Examination
Specifications for the General Securities Sales Supervisor (Series 8)
Examination
July 8, 1994.
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 28, 1994, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') 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) (1988).
\2\17 CFR 240.19b-4 (1994).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange has filed the proposed Examination Specifications for
the General Securities Sales Supervisor (``Series 8'') Examination.\3\
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\3\As part of the proposed rule change, the NYSE is also seeking
approval of the Series 8 examination itself.
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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
Statutory Basis for, the Proposed Rule Change
(a) Purpose
The General Securities Sales Supervisor (``Series 8'') Examination
is an industry-wide qualification examination for securities sales
supervisors. The Series 8 examination is generally required under rules
of the self-regulatory organizations (``SROs'') for persons who are
engaged in the supervision of general securities branch offices (i.e.,
branch office managers) and of general securities registered
representatives. The Series 8 examination tests a candidate's knowledge
of securities industry rules and regulations and certain statutory
provisions applicable to general securities sales supervision. The
Series 8 examination specifications detail the areas covered by the
examination and break down the number of examination questions culled
from each area.
Revision of the Series 8 examination and specifications was
recently undertaken by an industry committee composed of
representatives from SROs (the NYSE, the American Stock Exchange, the
Chicago Board Options Exchange, the Municipal Securities Rulemaking
Board, the National Association of Securities Dealers and the
Philadelphia Stock Exchange) and representatives from broker-dealers,
including branch office managers, compliance personnel and corporate
executives, in order to update the examination in view of changes in
relevant laws, rules and regulations, the development of new products,
and to reflect various changes in industry practices. The committee
reviewed the examination specifications, content areas and item bank
and developed some new questions in new areas.
The revised examination continues to cover the areas of knowledge
required to supervise sales activities in securities, however, the
focus of the content of the examination has been shifted to concentrate
more closely on supervisory duties. Accordingly, certain questions have
been deleted which deal with routine calculations and basic product
knowledge and questions on new federal and SRO rules and regulations
have been incorporated into the exam, as well as questions on new
products, supervision and changes in industry practices. The revised
examination and specifications include coverage of these new areas. The
examination will remain a six-hour, two-part, 200 question examination.
The other SRO participants will also file the revised examination
and specifications for approval by the SEC. The Exchange intends to
commence use of the revised examination specifications ninety days
after approval by the Commission.
(b) Statutory Basis
The statutory basis for the Series 8 Examination lies in Section
6(c)(3)(B) of the Act. Under that Section, it is the Exchange's
responsibility to prescribe standards of training, experience and
competence for persons associated with Exchange members and member
organizations. Pursuant to this statutory obligation, the Exchange has
developed examinations that are administered to establish that persons
associated with Exchange members and member organizations have attained
specific levels of competence and knowledge.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden 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
Within 35 days of the publication of this notice in the Federal
Register or within such other period: (i) As the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve the proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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, NW., Washington, DC 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 at the
Commission's Public Reference Room, 450 Fifth Street, NW., Washington,
DC 20549. Copies of the filing will also be available for inspection
and copying at the principal office of the NYSE. All submissions should
refer to File No. SR-NYSE-94-24 and should be submitted by August 4,
1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-17099 Filed 7-13-94; 8:45 am]
BILLING CODE 8010-01-M