[Federal Register Volume 74, Number 220 (Tuesday, November 17, 2009)]
[Notices]
[Pages 59334-59335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-27466]



[[Page 59334]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60963; File No. SR-FINRA-2009-071]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change to Increase the Session Fee for the Regulatory 
Element of the Continuing Education Requirements Pursuant to FINRA 
Rules

 November 6, 2009.
    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 October 27, 2009, Financial Industry Regulatory Authority, Inc. 
(``FINRA'') (f/k/a National Association of Securities Dealers, Inc. 
(``NASD'')) 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 FINRA. FINRA has 
designated the proposed rule change as ``establishing or changing a 
due, fee or other charge'' under Section 19(b)(3)(A)(ii) of the Act \3\ 
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal 
effective upon receipt of this filing by the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    FINRA is proposing to amend Section 4 of Schedule A to the FINRA 
By-Laws to increase the session fee for the Regulatory Element of the 
continuing education requirements pursuant to FINRA rules.
    The text of the proposed rule change is available on FINRA's Web 
site at http://www.finra.org, at the principal office of FINRA and at 
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, FINRA 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. FINRA 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
    NASD Rule 1120 (Continuing Education Requirements) and Incorporated 
NYSE Rule 345A (Continuing Education for Registered Persons) prescribe 
requirements regarding the continuing education of certain registered 
persons (referred to as the ``Securities Industry Continuing Education 
Program'' or ``CE Program''). The CE Program consists of a Regulatory 
Element and a Firm Element. The Regulatory Element is a computer-based 
education program developed and administered by FINRA to help ensure 
that registered persons are kept current on regulatory, compliance and 
sales practice matters in the industry.\5\ FINRA members currently pay 
$75 each time one of their registered persons participates in the 
Regulatory Element.
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    \5\ The Firm Element consists of annual, member developed and 
administered training programs designed to keep covered registered 
persons current regarding securities products, services and 
strategies offered by the member.
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    Following the consolidation of NASD's and NYSE Regulation's member 
regulation operations and the creation of FINRA, FINRA assumed 
responsibility for all aspects of the CE Program and thereafter 
conducted a financial review and evaluation of the program's budget. 
Based on this assessment, FINRA has determined that an increase in the 
Regulatory Element session fee is necessary to cover the full costs 
associated with the CE Program, including costs associated with the 
redesign of the Regulatory Element,\6\ and to maintain an adequate 
reserve for the program. Therefore, the proposed rule change would 
increase the Regulatory Element session fee from $75 to $100, effective 
January 4, 2010. This fee increase will coincide with the 
implementation of the redesigned Regulatory Element of the CE Program.
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    \6\ The redesign updates the presentation and content of the 
Regulatory Element to take advantage of the latest innovations in 
adult learning theories and technological advances. This is the 
first such large-scale redesign since the inception of the CE 
Program and should result in a significantly improved product and 
experience for members. FINRA will first implement the redesign of 
the General Program (S101) and the Series 6 Program (S106). The 
redesign of the Supervisors Program (S201) will be implemented at a 
later stage.
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    FINRA has filed the proposed rule change for immediate 
effectiveness. FINRA proposes to implement the proposed rule change on 
January 4, 2010.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A of the Act,\7\ in general, and with Section 
15A(b)(5) of the Act,\8\ in particular, in that it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
members and issuers and other persons using any facility or system 
which FINRA operates or controls. FINRA believes that the proposed rule 
change is designed to accomplish these ends by enabling FINRA to cover 
the costs associated with the CE Program while preserving adequate 
reserves for the maintenance and improvement of the CE Program.
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    \7\ 15 U.S.C. 78o-3.
    \8\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA 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 foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \9\ and paragraph (f)(2) of Rule 19b-4 
thereunder.\10\ 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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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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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 proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

[[Page 59335]]

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File No. SR-FINRA-2009-071 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-FINRA-2009-071. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of FINRA. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File No. SR-FINRA-2009-071 and should be 
submitted on or before December 8, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-27466 Filed 11-16-09; 8:45 am]
BILLING CODE 8011-01-P