[Federal Register Volume 66, Number 171 (Tuesday, September 4, 2001)]
[Notices]
[Pages 46301-46302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22123]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44748; File No. SR-Amex-2001-61]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC to Allow In-Firm Delivery of the Regulatory Element of Continuing 
Education Program

August 28, 2001.
    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 August 8, 2001, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') 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 the Exchange. The 
Exchange filed the proposal pursuant to section 19(b)(3)(A) of the 
Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission.\5\ The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
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    \1\ 5 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ The Exchange provided written notice to the Commission on 
July 27, 2001, of its intention to file this proposal. See Rule 19b-
4(f)(6)(iii). 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Amex proposes to amend Amex Rule 341A (Continuing Education 
Requirements for Registered Persons) to permit the in-firm delivery of 
the Regulatory Element of Continuing Education Program. The text of the 
proposed rule change is available at the Exchange and at the 
Commission.

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 Exchange included statements 
concerning the purpose of and basis for its proposal and discussed any 
comments it received regarding the proposal. The text of these 
statements may be examined at the places specified in Item IV below. 
The Amex 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 Regulatory Element is a 3\1/2\-hour computer-based training 
program that currently can only be administered to registered persons 
at the location of an outside vendor such as Prometric Testing Centers 
(formerly Sylvan Technology Centers). Exchange Rule 341A requires that 
each registered person, who is not exempt from the Rule, complete the 
Regulatory Element

[[Page 46302]]

on the occurrence of his or her second registration anniversary and 
every three years thereafter. On each occasion, the training must be 
completed within 120 days after the registered person's anniversary 
date. A registered person who has not completed the Regulatory Element 
within the prescribed time periods is deemed to be inactive until the 
Regulatory Element has been fulfilled, and may not conduct, or be 
compensated for, activities requiring a securities registration.
    The Securities Industry/Regulatory Council on Continuing Education 
(``Council'') is responsible for the oversight of the Continuing 
Education Program for the securities industry. The Council's duties 
include recommending and helping to develop specific content and 
questions for the Regulatory Element, and the minimum core curricula 
for the Firm Element. The Council is comprised of 14 representatives 
from a broad cross section of broker/dealers, and six self-regulatory 
organizations, including the Amex. The Council, working with 
representatives from the North American Securities Administrators 
Association, and with the knowledge of the Council's SEC liaison, has 
developed a model under which broker/dealers may deliver the Regulatory 
Element computer-based training on the firm's premises. The model 
requires that the broker/dealer meet certain conditions for in-firm 
delivery relating to computer hardware and the security of the training 
environment. The proposed amendments to Amex Rule 341A encapsulate the 
delivery requirements as specified by the Council.\6\ Firms of any size 
may take advantage of the in-firm delivery procedures.
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    \6\ The Exchange modeled the proposed rule change after Rules 
the Commission approved allowing in-firm delivery of the Regulatory 
Element for the New York Stock Exchange, Inc. and the National 
Association of Securities Dealers, Inc. See Securities Exchange Act 
Release Nos. 43701 (December 11, 2000), 65 FR 79143 (December 18, 
2000) (SR-NASD-00-64) and 43838 (January 12, 2001), 66 FR 6722 
(January 2, 2001) (SR-NYSE-00-55).
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with section 
6(b) of the Act \7\ in general, and furthers the objectives of section 
6(b)(5) \8\ in particular in that it is designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principals of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    The Exchange also believes the proposed rule change is consistent 
with section 6(c)(3)(B) of the Act \9\ Under this section, it is the 
Exchange's responsibility to prescribe standards for training, 
experience and competence for persons associated with Exchange members 
and member organization. The Exchange has proposed this rule change to 
establish an additional mechanism for the administration of Regulatory 
Element of the Continuing Education Program, which will help enable 
registered persons to satify their continuing education obligations.
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    \9\ 15 U.S.C. 78f(c)(3)(B).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Amex does not believe that the proposed rule change will impose any 
burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to section 19(b)(3)(A) of the Act \10\ and 
Rule 19b-4(f)(6) thereunder.\11\ At any time within 60 days of the 
filing of the proposed 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.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    The Exchange has requested that the Commission accelerate the 
operative date. The Commission finds good cause to designate the 
proposal to become operative immediately upon filing with the 
Commission because such designation is consistent with the protection 
of investors and the public interest. Acceleration of the operative 
date will allow in-firm delivery of the Regulatory Element of the 
Continuing Education Program at the Amex without unnecessary delay. For 
these reasons, the Commission finds good cause to designate that the 
proposal is both effective and operative upon filing with the 
Commission.\12\
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    \12\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation 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 proposal 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 20549-0609. Copies of 
the submission, all subsequent amendments, all written statements with 
respect to the proposed rule change that are filed with 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 Amex. All 
submissions refer to file number SR-Amex-2001-61 and should be 
submitted by September 25, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(c)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-22123 Filed 8-31-01; 8:45 am]
BILLING CODE 8010-01-M