[Federal Register Volume 60, Number 111 (Friday, June 9, 1995)]
[Notices]
[Pages 30624-30625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14325]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35820; File No. SR-NASD-95-22]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing of a Proposed Rule Change Relating to
Extending the Continuing Education Requirement for Registered Persons
to Government Securities Principals and Representatives
June 7, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 11, 1995, the National
Association of Securities Dealers, Inc. (``NASD'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II 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.
\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NASD is proposing to amend Schedule C of the NASD By-Laws to
include government securities principals and representatives in the
continuing education requirement for registered persons. Below is the
text of the proposed rule change. Proposed new language is italicized,
deleted language is in brackets:
Part XII
Continuing Education Requirements
This Part prescribes requirements regarding the continuing
education of certain registered persons subsequent to their initial
qualification and registration with the NASD. The requirements shall
consist of a Regulatory Element and a Firm Element as set forth below.
(1) Regulatory Element
* * * * *
(e) Definition of registered person--For purposes of this Part, the
term ``registered person'' means any person registered with the NASD as
a representative, principal or assistant representative pursuant to
Parts II, III [or], IV or XI respectively of Schedule C to the By-Laws.
* * * * *
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
The purpose of the proposed rule change is to make a technical
amendment to the rule language in Section (1)(e) of Part XII of
Schedule C of the NASD By-Laws, Continuing Education Requirements. The
proposed change will require Government Securities Principals and
Representatives to participate in the continuing education program.
Such persons who are designated in Part XI of Schedule C of the By-Laws
were inadvertently excluded from the definition of registered person in
Section (1)(e) of Part XII of Schedule C when the NASD filed SR-NASD-
94-72 with the Commission on December 7, 1994.\2\
\2\ The Commission approved SR-NASD-94-72 on February 8, 1995.
Securities Exchange Act Release No. 35341 (February 8, 1995), 60 FR
8426.
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The NASD believes the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act in that the proposed changes
to Schedule C of the By-Laws will improve the standards of training,
experience, and competence for persons associated with NASD members.
Pursuant to this statutory obligation, the NASD has proposed this rule
change to operate its two-part continuing education program for
industry professionals.
B. Self-Regulatory Organization's Statement on Burden on Competition
The NASD 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, as amended.
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 NASD has requested that the Commission find good cause pursuant
to Section 19(b)(2) for approving the proposed rule change prior to the
thirtieth day after publication in the Federal Register. In support of
its request, the NASD states that it desires to ensure that all NASD
registered persons will be required to participate in the continuing
education program which will commence on July 1, 1995.
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer 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 such 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 submissions, 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 the file number in the caption
above and should be submitted by June 26, 1995.
[[Page 30625]] For the Commission, by the Division of Market
Regulation, pursuant to delegated authority.\3\
\3\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-14325 Filed 6-7-95; 12:29 pm]
BILLING CODE 8010-01-M