Federal Register / Vol. 77, No. 41 / Thursday, March 1, 2012 / Notices 12635 

28See supra note 6. 

29 15 U.S.C. 78f(b)(5). 

30 15 U.S.C. 78s(b)(2). 

31 17 CFR 200.30–3(a)(12). 

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). 

5See also NASD Rules 1041 and 1050 and FINRA 

Rule 1230(b)(6) regarding the qualification and 

registration requirements for Order Processing 

Assistant Representatives, Research Analysts and 

Operations Professionals, respectively. 

6PROCTOR is a computer system that is 

specifically designed for the administration and 

delivery of computer-based testing and training. 

7The delivery fee represents a portion of the 

entire examination fee when a FINRA client has 

established an additional fee for an examination 

that it sponsors. For example, the fee to take the 

Series 51 (Municipal Fund Securities Limited 

Principal) examination is currently $145. Of this 

amount, $85 is the FINRA administration and 

delivery fee, and $60 is the development fee 

determined by the FINRA client, the MSRB. See 

MSRB Rule A–16. 

Underlying Funds, which have been 

approved for listing and trading on the 

Exchange by the Commission.28

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act 29 and the rules and 

regulations thereunder applicable to a 

national securities exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,30 that the 

proposed rule change (SR–NYSEArca– 

2011–97) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Kevin M. O’Neill, 

Secretary. 

[FR Doc. 2012–4915 Filed 2–29–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66465; File No. SR–FINRA– 

2012–009] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Section 4(c) of 

Schedule A to the FINRA By-Laws To 

Increase Qualification Examination 

Fees and Assess a Service Charge for 

Regulatory Element Continuing 

Education Sessions Taken Outside the 

United States 

February 24, 2012. 

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 February 

23, 2012, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

FINRA is proposing to amend Section 

4(c) of Schedule A to the FINRA ByLaws to (1) increase qualification 

examination fees, and (2) assess a 

service charge for any Regulatory 

Element sessions taken in a test center 

located outside the territorial limits of 

the United States. 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 

As discussed in further detail below, 

the proposed rule change amends 

Section 4(c) of Schedule A to the FINRA 

By-Laws to (1) increase qualification 

examination fees, and (2) assess a 

service charge for any Regulatory 

Element session taken in a test center 

located outside the territorial limits of 

the United States. 

Qualification Examination Fees 

NASD Rules 1021(a) and 1031(a) 

require that persons engaged, or to be 

engaged, in the investment banking or 

securities business of a FINRA member 

who are to function as principals or 

representatives register with FINRA in 

each category of registration appropriate 

to their functions as specified in NASD 

Rules 1022 and 1032.5 Such individuals 

must pass an appropriate qualification 

examination before their registration can 

become effective. These mandatory 

qualification examinations cover a 

broad range of subjects regarding 

financial markets and products, 

individual responsibilities, securities 

industry rules, and regulatory structure. 

FINRA develops, maintains, and 

delivers all qualification examinations 

for individuals who are registered or 

seeking registration with FINRA. FINRA 

also administers and delivers 

examinations sponsored (i.e., 

developed) by the Municipal Securities 

Rulemaking Board (‘‘MSRB’’), the North 

American Securities Administrators 

Association, the National Futures 

Association, the Federal Deposit 

Insurance Corporation, and other selfregulatory organizations. 

FINRA currently administers 

examinations via computer through the 

PROCTOR® system 6 at testing centers 

operated by vendors under contract 

with FINRA. FINRA charges an 

examination fee to candidates for 

FINRA-sponsored and co-sponsored 

examinations to cover the development, 

maintenance, and delivery of these 

examinations. For qualification 

examinations sponsored by a FINRA 

client and administered by FINRA, 

FINRA charges a delivery fee that 

represents either a portion of or the 

entire examination fee for the 

examination.7

FINRA regularly conducts a 

comprehensive review of the 

examination fee structure, including an 

analysis of the costs associated with 

developing, administering, and 

delivering examinations. Based on the 

results of its review, FINRA may 

propose changes to better align the 

examination fee structure with the costs 

associated with the programs. In this 

regard, the most recent review revealed 

that certain operational costs have 

increased and, based on current 

information, will continue to increase 

over the next few years. In particular, 

these costs consist of (1) fees that 

vendors charge FINRA for delivering 

qualification examinations, and (2) 

PROCTOR maintenance and 

enhancement expenses. FINRA believes 

that the proposed rule change will help 

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12636 Federal Register / Vol. 77, No. 41 / Thursday, March 1, 2012 / Notices 

8See Securities Exchange Act Release No. 64687 

(June 16, 2011), 76 FR 36586 (June 22, 2011) (Order 

Approving Proposed Rule Change; File No. SR– 

FINRA–2011–013); Securities Exchange Act Release 

No. 65221 (August 30, 2011), 76 FR 55441 

(September 7, 2011) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change; 

File No. SR–FINRA–2011–042). 

9The $25 fee increase for the Series 52 

examination has two components: (1) $15 of the fee 

increase is attributable to the MSRB’s increase in 

the length of the examination in January 2011, see 

Securities Exchange Act Release No. 63310 

(November 12, 2010), 75 FR 70760 (November 18, 

2010) (Notice of Filing and Immediate Effectiveness 

of Proposed Rule Change; File No. SR–MSRB– 

2010–12); and (2) $10 of the fee increase is 

attributable to the increase in the costs associated 

with administering and delivering the examination. 

10 15 U.S.C. 78o–3(b)(5). 

11See Securities Exchange Act Release No. 59076 

(December 10, 2008), 73 FR 76431 (December 16, 

2008) (Order Approving Proposed Rule Change; File 

No. SR–FINRA–2008–053). 

to better align the examination program 

fees with these costs. 

Therefore, FINRA is proposing to 

amend Section 4(c) of Schedule A to the 

FINRA By-Laws to increase the fees for 

the qualification examinations set forth 

in Section 4(c), except for the Series 99 

Operations Professional examination, 

which was implemented in late 2011.8

The proposed fee changes are as 

follows: 

Series 4 .............................. Registered Options Principal .................................................................................................. From $90 to $100. 

Series 6 .............................. Investment Company Products/Variable Contracts Representative ...................................... From $85 to $95. 

Series 7 .............................. General Securities Representative ......................................................................................... From $265 to $290. 

Series 9 .............................. General Securities Sales Supervisor—Options Module ......................................................... From $70 to $75. 

Series 10 ............................ General Securities Sales Supervisor—General Module ........................................................ From $110 to $120. 

Series 11 ............................ Assistant Representative—Order Processing ........................................................................ From $70 to $75. 

Series 14 ............................ Compliance Official ................................................................................................................. From $320 to $335. 

Series 16 ............................ Supervisory Analyst ................................................................................................................ From $210 to $230. 

Series 17 ............................ Limited Registered Representative ......................................................................................... From $70 to $75. 

Series 22 ............................ Direct Participation Programs Representative ........................................................................ From $85 to $95. 

Series 23 ............................ General Securities Principal Sales Supervisor Module .......................................................... From $85 to $95. 

Series 24 ............................ General Securities Principal ................................................................................................... From $105 to $115. 

Series 26 ............................ Investment Company Products/Variable Contracts Principal ................................................. From $85 to $95. 

Series 27 ............................ Financial and Operations Principal ......................................................................................... From $105 to $115. 

Series 28 ............................ Introducing Broker-Dealer Financial and Operations Principal .............................................. From $85 to $95. 

Series 37 ............................ Canada Module of S7 (Options Required) ............................................................................. From $160 to $175. 

Series 38 ............................ Canada Module of S7 (No Options Required) ....................................................................... From $160 to $175. 

Series 39 ............................ Direct Participation Programs Principal .................................................................................. From $80 to $90. 

Series 42 ............................ Registered Options Representative ........................................................................................ From $65 to $70. 

Series 51 ............................ Municipal Fund Securities Limited Principal ........................................................................... From $85 to $95. 

Series 52 ............................ Municipal Securities Representative ....................................................................................... From $95 to $120. 9

Series 53 ............................ Municipal Securities Principal ................................................................................................. From $95 to $105. 

Series 55 ............................ Limited Representative—Equity Trader .................................................................................. From $95 to $105. 

Series 62 ............................ Corporate Securities Limited Representative ......................................................................... From $80 to $90. 

Series 72 ............................ Government Securities Representative .................................................................................. From $95 to $105. 

Series 79 ............................ Investment Banking Qualification Examination ...................................................................... From $265 to $290. 

Series 82 ............................ Limited Representative—Private Securities Offering ............................................................. From $80 to $90. 

Series 86 ............................ Research Analyst—Analysis ................................................................................................... From $160 to $175. 

Series 87 ............................ Research Analyst—Regulatory ............................................................................................... From $115 to $125. 

Series 99 ............................ Operations Professional .......................................................................................................... $125 (No change). 

Service Charge for Foreign Test Center 

Regulatory Element Sessions 

FINRA assesses a service charge of 

$15 for any qualification examination 

that is taken in a foreign test center (i.e., 

a test center located outside of the 

territorial limits of the United States) to 

help offset the higher fees that vendors 

charge FINRA for delivering 

qualification examinations in such 

locations. Vendors also charge FINRA 

higher fees for the delivery of 

Regulatory Element sessions in foreign 

test centers; however, all individuals are 

currently assessed the same amount for 

a Regulatory Element session regardless 

of where they take the session. 

Therefore, FINRA is proposing to assess 

a $15 service charge for any Regulatory 

Element session taken in a foreign test 

center to more closely align the fee with 

the cost of such sessions. 

Implementation 

FINRA has filed the proposed rule 

change for immediate effectiveness. 

FINRA is proposing that the 

implementation date of the proposed 

rule change will be April 2, 2012. 

Specifically, the proposed examination 

fees would become effective for 

examination requests made in the CRD 

system on or after April 2, 2012. In 

addition, the proposed foreign test 

center Regulatory Element session 

service charge would become effective 

for Regulatory Element sessions 

completed on or after April 2, 2012. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(5) of the Act,10 which 

requires, among other things, that 

FINRA rules provide for the equitable 

allocation of reasonable dues, fees and 

other charges among members and 

issuers and other persons using any 

facility or system that FINRA operates 

or controls. 

FINRA believes that the proposal 

constitutes an equitable allocation of 

fees as the qualification examination 

fees will be assessed only on those 

individuals who take qualification 

examinations and the service charge for 

foreign test center Regulatory Element 

sessions will be assessed only on those 

individuals who take such a session. In 

addition, all candidates who register for 

a particular qualification examination 

will be charged the same amount, and 

all individuals who take a Regulatory 

Element session in a foreign test center 

will be assessed the $15 service charge. 

FINRA further believes that the 

proposed qualification examination 

changes are reasonable because they 

will more closely align the overall 

examination program fees with the 

overall costs associated with the 

programs. In this regard, FINRA notes 

that the last time that it increased fees 

for any of the qualification examinations 

set forth in Schedule A to the FINRA 

By-Laws was January 2009.11 Since that 

time, vendor fees and the costs 

associated with the enhancement and 

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Federal Register / Vol. 77, No. 41 / Thursday, March 1, 2012 / Notices 12637 

12 In 2009, the number of examinations 

administered and delivered by FINRA decreased by 

approximately 27 percent. Although examination 

volumes have increased modestly since that time, 

they have not returned to 2008 levels. 

13See Securities Exchange Act Release No. 64961 

(July 26, 2011), 76 FR 45883 (August 1, 2011) 

(Notice of Filing and Immediate Effectiveness of 

Proposed Rule Change; File No. SR–FINRA–2011– 

026). 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(2). 

16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C.78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

maintenance of the PROCTOR system 

have increased and, based on current 

information, will continue to increase 

over the next few years. Specifically, 

FINRA has recently completed a 

significant technological upgrade of the 

PROCTOR system and is working on 

considerable enhancements to the 

software used to deliver examinations at 

testing centers, which is scheduled for 

operational release in 2013. These 

increased costs, coupled with the 

significant decrease in the number of 

examinations taken during the past 

three years,12 has caused a divergence in 

the fees and costs associated with the 

examination programs. 

To better align the fees and costs 

associated with the examination 

programs, FINRA is proposing a modest 

increase in examination fees. In this 

regard, FINRA notes that no 

examination fee will increase by more 

than $25 and the majority of 

examination fees will increase by only 

$10. Furthermore, to help control the 

overall costs of the qualification 

examination and Regulatory Element 

programs and thereby minimize fee 

increases, FINRA earlier this year 

instituted a fee for individuals who 

cancel or reschedule a qualification 

examination or Regulatory Element 

session three to 10 business days prior 

to the appointment date.13 This 

cancellation/rescheduling fee has 

helped to limit the amount of the 

proposed examination fee increases by 

allowing FINRA to (1) receive a lower 

examination delivery rate from one of 

its vendors, and (2) apply the revenue 

from the fee to help offset the expenses 

of the qualification examination 

programs. 

With respect to the proposed service 

charge for foreign test center Regulatory 

Element sessions, FINRA believes that 

the service charge is reasonable because 

it helps to offset the higher delivery 

costs associated with such sessions. 

Specifically, vendors charge FINRA 

higher fees for delivering Regulatory 

Element sessions in a foreign test center 

than they do for delivering such 

sessions in a U.S. test center. 

Accordingly, FINRA believes that the 

proposed qualification examination fee 

changes and the service charge for 

foreign test center Regulatory Element 

sessions are equitably allocated and 

reasonable. 

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) 

of the Act 14 and paragraph (f)(2) of Rule 

19b–4 thereunder.15 At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend 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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

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: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rulecomments@sec.gov. Please include File 

Number SR–FINRA–21012–009 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 

Number SR–FINRA–2012–009. This file 

number should be included on the 

subject line if email 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 Web site viewing and 

printing in the Commission’s Public 

Reference Room 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 offices of the Exchange. 

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 

Number SR–FINRA–2012–009, and 

should be submitted on or before March 

22, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4914 Filed 2–29–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66463; File No. SR– 

NYSEAMEX–2012–12] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing of 

Proposed Rule Change Amending the 

NYSE Amex Equities Definition of 

Approved Person To Exclude Foreign 

Affiliates, Eliminating the Application 

Process for Approved Persons, and 

Making Related Technical and 

Conforming Changes 

February 24, 2012. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on February 

14, 2012, NYSE Amex LLC (the 

mstockstill on DSK4VPTVN1PROD with NOTICES