[Federal Register Volume 59, Number 222 (Friday, November 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28495]
[[Page Unknown]]
[Federal Register: November 18, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34967; File Nos. SR-NYSE-94-23; SR-NYSE-94-24]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Order Approving a Proposed Rule Change Relating to Examination
Specifications for the General Securities Sales Supervisor (Series 8)
Examination, and the Corresponding Content Outline
November 10, 1994.
I. Introduction
On June 28, 1994, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange``) filed with the Securities and Exchange Commission
(``Commission'') pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 thereunder,\2\
proposed rule changes (File Nos. SR-NYSE-94-23 and SR-NYSE-94-24) to
revise the General Securities Sales Supervisor (Series 8) Examination
Specifications and the corresponding Content Outline.
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\1\15 U.S.C. Sec. 78s(b)(1) (1988).
\2\17 CFR Sec. 240.19b-4 (1994).
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The proposed rule changes were published for comment in Securities
Exchange Act Release Nos. 34335 (July 8, 1994), 59 FR 35961 (July 14,
1994); and 34336 (July 8, 1994), 59 FR35962 (July 14, 1994). No
comments were received on the proposals. This order approves the
proposed rule changes contingent upon the filing of the revised
Examination Specifications and Content Outline by other appropriate
self-regulatory organizations (``SROs''), and approval of those filings
by the Commission.
II. Description of the Proposal
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 Content Outline details the subject coverage and question
allocation of the examination. The 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, Examination Specifications,
and Content Outline 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 from the examination 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 Specifications and Content Outline
reflect the revised content of the examination. The examination will
remain a six-hour, two-part, 200 question examination.
The Commission anticipates that the other appropriate SRO
participants also will file the revised Specifications and Content
Outline for approval by the Commission. The NYSE, and these other SROs,
may use the revised Examination, Specifications and Content Outline
after the Commission has approved the proposed rule changes of the
other appropriate SRO participants.
III. Discussion
After careful review, the Commission finds that the proposed rule
changes are consistent with the requirements of the Act and the rules
and regulations thereunder applicable to a national securities
exchange, and in particular, with the requirements of Sections 6(b)(5)
and 6(c)(3)(B) of the Act.\3\ Section 6(b)(5) requires, among other
things, that the rules of an exchange be designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Section
6(c)(3)(B) provides that a national securities exchange may examine and
verify the qualifications of an applicant to become a person associated
with a member in accordance with procedures established by the rules of
the exchange, and may require any person associated with a member, or
any class of such persons, to be registered with the exchange in
accordance with procedures so established.
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\3\15 U.S.C. Sec. 78f (b)(5) and (c)(3)(B) (1988).
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The Commission believes that revising the Series 8 Examination,
Specifications and Content Outline should help to ensure that only
those securities sales supervisors with a comprehensive knowledge of
current Exchange rules, as well as an understanding of the Act, will be
able to supervise general securities branch offices and registered
representatives. The Commission believes that the revised areas covered
by the Examination, Specifications and Content Outline are appropriate
subject matters and include a sufficiently broad range of topics to
ensure an appropriate level of expertise by supervisors. Additionally,
the revised examination tests relevant subject matters in view of
changes in applicable laws, rules, regulations, products, and industry
practices. By ensuring this requisite level of knowledge, the NYSE can
remain confident that securities sales supervisors have demonstrated an
acceptable level of securities knowledge to carry out their
responsibilities.
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\4\ that the proposed rule changes (File Nos. SR-NYSE-94-23 and SR-
NYSE-94-24) are approved contingent upon the filing of the Examination
Specifications and Content Outline by the other appropriate SROs and
the approval of those filings by the Commission.
\4\15 U.S.C. Sec. 78s(b)(2) (1988).
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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) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-28495 Filed 11-17-94; 8:45 am]
BILLING CODE 8010-01-M