[Federal Register Volume 60, Number 204 (Monday, October 23, 1995)]
[Notices]
[Pages 54401-54403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26185]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36378; International Series Release No. 869; File No. 
SR-NYSE-95-29]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the New York Stock Exchange, Inc. Relating to the 
Specifications and Content Outline for the Canadian Module of the 
General Securities Registered Representative Examination (Series 37)

October 16, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on September 18, 1995, the 
New York Stock Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 

[[Page 54402]]
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.

    \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 Exchange has filed with the Commission specifications and a 
content outline for a Canadian Module of the General Securities 
Registered Representative Examination (Series 37).

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
    Presently, registered representatives who already are qualified to 
conduct business in Canada and who wish to sell securities in the 
United States must qualify as registered representatives in the U.S. by 
successfully completing the General Securities Registered 
Representative Examination (Series 7). Likewise, U.S. qualified 
registered representatives desiring to conduct securities business in 
Canada must satisfy Canadian requirements by passing the New Entrants 
Exam. The Canadian securities authorities and member organizations of 
the NYSE have expressed concern regarding the duplication of 
qualification examination requirements. To address this concern, the 
Canadian Securities Institute,\2\ in conjunction with the Investment 
Dealers Association of Canada, has developed a shortened examination 
module for U.S. qualified registered representatives (e.g., Series 7) 
seeking to conduct business with Canadian citizens. The module covers 
subject matter unique to the Canadian securities business. 
Correspondingly, the Exchange has developed the Canadian Module of the 
General Securities Registered Representative Examination (Series 37) as 
a subset of the General Securities Registered Representative 
Examination (Series 7) to test the Canadian registered representatives' 
knowledge of U.S. securities laws, markets, investment products, and 
sales practices.

    \2\ The Canadian Securities Institute is responsible for 
developing course materials, test materials, and qualification 
examinations for prospective Canadian registered representatives.
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    To determine the applicable Series 7 content areas that should be 
covered in the qualification examinations for Canadian registered 
representatives, the Exchange's staff conducted a thorough review of 
The Canadian Securities Course textbook, the Registered Representative 
Conduct and Practices Handbook, and had discussions with the staff of 
the Canadian Securities Institute. Through this review, the Exchange's 
staff identified for inclusion in the Series 37 module those topics 
that are included in the Series 7 Examination but are not covered, or 
are not covered in sufficient detail, in the Canadian materials. As a 
result, the module consists of 90 questions covering subject matter 
that is unique to the U.S. The topics are weighted in the module to 
correspond to the relative emphasis given these topics in the Series 7 
Examination. For Canadian registered representatives who hold the 
additional Canadian license to sell options, the U.S. module would not 
contain the 45 questions pertaining to options and thus, would consist 
of 45 questions.
    Canadian qualified registered representatives in good standing 
applying to become registered with Exchange member organizations can 
satisfy the Exchange's examination requirements by obtaining a passing 
score on the Series 37 module. In addition, the Exchange represents 
that the National Association of Securities Dealers, Inc. (``NASD'') 
will submit a proposal to the Commission that would amend the NASD's 
rules such that the Series 37 would satisfy the NASD's qualification 
requirements. Canadian representatives seeking to sell municipal 
securities, however, will be required to pass the standard Series 7 or 
the Series 37 plus the Series 52 (Municipal Securities Representative 
Examination).
    Since 1991, the Exchange has provided a similar, 90-question 
qualification vehicle for United Kingdom approved registered 
representatives wishing to sell securities in the United States, the 
Limited Registered Representative Examination (Series 17).\3\ The 
Canadian module has been developed following procedures similar to 
those used for the Series 17 Examination.

    \3\ Securities Exchange Act Release No. 27967 (May 1, 1990), 55 
FR 19131 (approving File No. SR-NYSE-89-22).
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2. Statutory Basis
    The statutory basis for the Series 37 Examination is Section 
6(c)(3)(B) \4\ of the Act. Under this 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 
specified levels of competence and knowledge.

    \4\ 15 U.S.C. 78f(c)(3)(B).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed rule change will impose no 
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.

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 

[[Page 54403]]
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 Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing also will be available for 
inspection and copying at the principal office of the New York Stock 
Exchange. All submissions should refer to File No. SR-NYSE-95-29 and 
should be submitted by November 13, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\

    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-26185 Filed 10-20-95; 8:45 am]
BILLING CODE 8010-01-M