[Federal Register Volume 60, Number 74 (Tuesday, April 18, 1995)]
[Notices]
[Pages 19427-19428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9526]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35597; File No. SR-NYSE-95-11]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the New York Stock Exchange, Inc. Relating to Adoption of
Rule 440A (``Telephone Solicitation--Recordkeeping'') and an
Interpretation with Respect to Proposed Rule 440A
April 12, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. Sec. 78s(b)(1), notice is hereby given that on
March 22, 1995, 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.
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The NYSE is herewith filing a proposed rule change to adopt new
Rule 440A (``Telephone Solicitation--Recordkeeping'') and to add an
interpretation with respect to the meaning and administration of
proposed Rule 440A.
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
1. Purpose
The purpose of the proposed rule change is to:
(1) Adopt a rule requiring members and member organizations that
engage in telephone solicitations to maintain a centralized list of
persons who do not wish to receive telephone solicitations; and
(2) Set forth an interpretation concerning the meaning and
administration of proposed Rule 440A with respect to compliance with
Federal Communications Commission (``FCC'') and SEC rules relating to
telemarketing practices. It is intended that the interpretation will be
published as an Interpretation Memorandum for inclusion in the Exchange
Interpretation Handbook.
In 1994, an industry Task Force, comprised of representatives from
the Exchange, and other industry regulatory and self-regulatory
organizations, was formed to review broker-dealer telemarketing
practices and compliance with the Telephone Consumer Protection Act of
1991 (``TCPA'') and the FCC rules and regulations implementing that
law. The TCPA and FCC rules address telemarketing practices and the
rights of telephone customers. One of those requirements is that
businesses (which includes broker-dealers) that make telephone
solicitations to residential telephone subscribers must institute
written policies and have procedures in place for maintaining ``do-not-
call'' lists.
The industry Task Force is considering several initiatives relating
to broker-dealers that engage in telephone solicitation or ``cold-
calling'' activities. One such initiative is proposed Rule 440A which
requires members and member organizations to make and maintain a
centralized list of persons who have informed the member or member
organization that they do not want to receive telephone solicitations.
It is anticipated that such a rule will also be adopted by other self-
regulatory organization participants of the Task Force.
The proposed interpretation to Rule 440A reminds members and member
organizations that they are subject to compliance with the requirements
of the relevant rules of the FCC and SEC relating to telemarketing
practices and the rights of telephone consumers.
2. Statutory Basis
The proposed rule change is consistent with the requirements of
Section 6(b)(5) of the Act, which requires that the rules of the
Exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, and, in
general, to protect investors and the public interest, in that it
addresses the practices of Exchange members and member organizations
who make telemarketing calls and the protection of customers who have
indicated a desire not to receive such calls.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
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. [[Page 19428]]
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. Sec. 552, will be available for inspection and copying at
the Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such 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-95-11 and should be
submitted by May 9, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-9526 Filed 4-17-95; 8:45 am]
BILLING CODE 8010-01-M