[Federal Register Volume 64, Number 2 (Tuesday, January 5, 1999)]
[Notices]
[Pages 554-555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-76]



[[Page 554]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40851; File No. SR-NASD-98-95]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the National Association of 
Securities Dealers, Inc. Relating to Reduction of Fee for the 
Regulatory Element of the Securities Industry Continuing Education 
Program

December 28, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'' \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 21, 1998, the National Association of Securities Dealers, 
Inc. (``NASD'' or ``Association''), through its wholly-owned regulatory 
subsidiary, NASD Regulation, Inc. (``NASD Regulation''), filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change as described in Items I, II, and III below, which Items have 
been prepared by NASD Regulation. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The NASD is proposing the amend Schedule A of the NASD By-Laws to 
reduce the session fee for the Regulatory Element of the Securities 
Industry Continuing Education Program (``Program'') under NASD Rule 
1120 and to correct a cross-reference to the NASD's continuing 
education rule. Below is the text of the proposed rule change. Proposed 
new language is italicized; proposed deletions are in brackets.

Schedule A to the NASD By-Laws

* * *

Section 2--Fees

* * *
    (k) There shall be a session fee of [$75.00] $65.00 assesed as to 
each individual who is required to complete the Regulatory Element of 
the Continuing Education Requirements pursuant to [the provisions of 
Part XII of Schedule ``C'' of the By-Laws] Rule 1120.
* * *

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 Regulation 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

 1. Purpose
    The purpose of the proposed rule change is to reduce the session 
fee charged for the Program under NASD Rule 1120, effective January 1, 
1999. The Program was established in 1994 by the Securities Industry/
Regulatory Council on Continuing Education (``Council''). The Council 
comprises six self-regulatory organizations (``SROs'') \3\ and thirteen 
broker-dealers to represent the interests and needs of a wide cross-
section of the securities industry. The Program was not intended to 
generate revenue. The Council has voted to reduce the Program fee from 
$75 to $65 because the Council has determined that the revenue 
generated by the reduced fee will be sufficient to maintain the 
Program. The Council will reassess the fee structure each year in order 
to ensure that the existing fee is consistent with the costs of 
operating the program. The NASD proposes to amend Section 2(k) of 
Schedule A of the NASD By-Laws to reflect the agreed upon fee and to 
correct a cross-reference to the NASD's continuing education rule.
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    \3\ The SROs include the American Stock Exchange; Chicago Board 
Options Exchange, Incorporated; Municipal Securities Rulemaking 
Board; NASD; New York Stock Exchange, Inc.; and Philadelphia Stock 
Exchange. The Commission and the North American Securities 
Administrators Association have each assigned liaisons to the 
Council.
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2. Statutory Basis
    The NASD believes that the proposed rule change is consistent with 
the provisions of Section 15A(b)(5) of the Act,\4\ which require, among 
other things, that the Association's rules must provide for the 
equitable allocation of reasonable dues, fees, and other charges among 
members and issuers and other persons using any facility or system 
which the Association operates or controls. The NASD believes that the 
reduced fee is fair in that it will enable the Program to be maintained 
on a revenue neutral basis.
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    \4\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NASD Regulation 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.

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 proposed rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(ii) of the Act,\5\ and Rule 19b-4(e)(2) \6\ 
thereunder, in that it establishes or changes a due, fee, or other 
charge imposed by the NASD. At any time within 60 days of the filing of 
such rule change, the Commission may summarily abrogate such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.\7\
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(e)(2).
    \7\ In reviewing this proposal, the Commission has considered 
its impact on efficiency, competition, and capital information. 15 
U.S.C. 78c(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the foregoing is 
consistent with the Act. 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. 
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

[[Page 555]]

the principal office of the NASD. All submissions should refer to File 
No. SR-NASD-98-95 and should be submitted by January 26, 1999.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-76 Filed 1-4-99; 8:45 am]
BILLING CODE 8010-01-M