[Federal Register Volume 60, Number 232 (Monday, December 4, 1995)]
[Notices]
[Pages 62118-62119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29387]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36514; International Series Release No. 890; File No. 
SR-NYSE-95-36]


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 Japan Module of the General 
Securities Registered Representative Examination (Series 47)

November 27, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on October 25, 1995, the New 
York Stock Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``SEC'' or ``Commission'') 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.

    \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 the Japan module (Series 47) of the General 
Securities Registered Representative Examination (Series 7).

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 in Japan who wish to sell 
securities in the United States must qualify as registered 
representatives in the U.S. by successfully completing the Series 7. In 
Japan, U.S. and other foreign securities professionals may qualify as 
securities sales representatives by passing a qualification exam \2\ or 
by meeting experiential requirements. In order to reduce duplication of 
qualification requirements, the Exchange has developed the Series 47 as 
a subset of the Series 7 to test the Japanese registered 
representatives' knowledge of U.S. securities laws, markets, investment 
products, and sales practices. Qualified Japanese securities 
professionals can satisfy the Exchange's examination requirements by 
obtaining a passing score on the Series 47 module.

    \2\ All of the applicants, both foreign and domestic, who do not 
meet the experiential requirements must pass the Securities Sales 
Representative Qualification Examination. This test is composed of 
the Class 1 examination, the Class 2 examination, and the 
Investment, Trust, and Bond examination. An applicant's experience 
and area of interest determines which parts of the examination are 
applicable. Telephone conversation between Mary Anne Furlong, 
Director, Rule & Interpretive Standards, NYSE, and Anthony Pecora, 
Attorney, SEC (Nov. 6, 1995).
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    Since 1991, the Exchange has provided a similar, 90-question 
qualification vehicle for United Kingdom approved registered 
representatives wishing to sell securities in the U.S., the Limited 
Registered Representative Examination (Series 17).\3\ The Exchange also 
has filed for Commission approval examination specifications and a 
content outline for a Canadian module of the General Securities 
Registered Representatives Examination (Series 37 & Series 38).\4\ The 
Series 47 module has been developed following procedures like those 
used for the Series 17 and 37 modules.

    \3\ Securities Exchange Act Release No. 27967 (May 1, 1990), 55 
FR 19131 (approving File No. SR-NYSE-89-22).
    \4\ Securities Exchange Act Release No. 36378 (Oct. 16, 1995), 
60 FR 54401 (noticing File No. SR-NYSE-95-29).
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    To determine the applicable Series 7 content areas not covered in 
the qualification examinations for Japanese registered representatives, 
the Exchange's staff conducted a thorough review of the content covered 
by the Securities Sales Representative Qualification Examination and 
supporting materials, including translations of Japan's securities laws 
and regulations. in addition, the Exchange's staff exchanged detailed 
correspondence and had discussions with the staff of the Japan 
Securities Dealers Association.\5\ Through this review, the Exchange's 
staff identified for inclusion in the Series 47 those topics that are 
included in the Series 7 but are not covered, or covered in sufficient 
detail, in the Japanese qualification materials. As a result, the 
Series 47 consists of 160 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.

    \5\ The Japan Securities Dealers Association is the regulatory 
authority responsible for developing course materials, test 
materials, and qualification examinations for people wishing to 
become a registered representative in Japan. Telephone conversation 
between Mary Anne Furlong, Director, Rule & Interpretive Standards, 
NYSE, and Anthony Pecora, Attorney, SEC (Nov. 6, 1995).
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    The Exchange understands 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 47 
would satisfy the NASD's qualification requirements. The Series 47, 
however, will not qualify Japanese securities professionals to transact 
business in municipal securities. Any individuals wishing to do so will 
be required to pass the Series 52 (Municipal Securities Representative 
Examination).
2. Statutory Basis
    The statutory basis for the Series 47 is in Section 6(c)(3)(B) \6\ 
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.

    \6\ 14 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.

[[Page 62119]]


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 
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 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-95-36 and 
should be submitted by December 26, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\1\

    \1\ 17 C.F.R. 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-29387 Filed 12-1-95; 8:45 am]
BILLING CODE 8010-01-M