[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