Federal Register / Vol. 66, No. 90 / Wednesday, May 9, 2001 / Notices 23749

12 17 CFR 240.19b–4(f)(1).

13 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See Letter to Alden S. Adkins, Senior Vice

President and General Counsel, NASD Regulation,

from Belinda Blaine, Associate Director, Division of

Market Regulation, SEC, dated July 24, 2000.

Revisions to the Series 24 and Series 62

Examinations were originally filed with the

Commission in SR–NASD–99–55. NASD Regulation

has withdrawn SR–NASD–99–55 and refiled the

revisions in the instant proposed rule change.

4 15 U.S.C. 78s(b)(3)(A)(i).

5 17 CFR 240.19b–4(f)(1).

6The revised examination specifications were

filed with the Commission under separate cover

pursuant to a request by NASD Regulation for

confidential treatment. See 17 CFR 240.24b–2. 7 15 U.S.C. 78o–3(g)(3).

thereunder,12 in that the foregoing

proposed rule change constitutes a

stated policy, practice, or interpretation

with respect to the meaning,

administration, or enforcement of an

existing rule of the self-regulatory

organization. NASD Regulation

proposes to implement the revised

Series 26 examination program on July

2, 2001.

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.

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 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

the principal office of the NASD. All

submissions should refer to file number

SR–NASD–2001–22 and should be

submitted by May 30, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.13

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–11637 Filed 5–8–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44248; File No. SR–NASD–

2001–23]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

National Association of Securities

Dealers Regulation, Inc. Revising the

General Securities Principal (Series 24)

and Corporate Securities Limited

Representative (Series 62)

Examinations

May 3, 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 March 27,

2001, the National Association of

Securities Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’), through its wholly

owned subsidiary, NASD Regulation,

Inc. (‘‘NASD Regulation’’), 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 NASD Regulation.3 NASD

Regulation has designated the proposed

rule change as constituting a stated

policy, practice, or interpretation with

respect to the meaning, administration,

or enforcement of an existing rule of the

self-regulatory organization under

section 19(b)(3)(A)(i) of the Act 4 and

Rule 19b–4(f)(1),5 which renders the

rule effective upon filing with 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 Substance of

the Proposed Rule Change

NASD Regulation is proposing

revisions to the General Securities

Principal (Series 24) and Corporate

Securities Limited Representative

(Series 62) examinations.6 The proposed

revisions consists of general revisions to

update the examination programs to

reflect changes in the rules, regulations,

and practices covered by the

examinations. The proposed revisions

are reflected in the question bank for the

Series 24 and 62 examinations and are

available for Commission review. The

text of the Study Outlines for the Series

24 and Series 62 examinations are

available at NASD Regulation 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,

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.

NASD Regulation 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

Pursuant to section 15A(g)(3) of the

Act,7 which requires the NASD to

prescribe standards of training,

experience, and competence for persons

associated with NASD members, the

NASD has developed examinations, and

administers examinations developed by

other self-regulatory organizations, that

are designed to establish that persons

associated with NASD members have

attained specified levels of competence

and knowledge. NASD Regulation

periodically reviews the content of the

examinations to determine whether

revisions are necessary or appropriate in

view of changes pertaining to the

subject matter covered by the

examinations.

The NASD’s Series 24 General

Securities Principal examination

qualifies individuals to manage or

supervise the member’s investment

banking or securities business for

corporate securities, direct participation

programs, and investment company

products/variable contracts. The Series

62 Corporate Securities Limited

Representative examination is an NASD

examination that qualifies an individual

as a representative for the sale of

corporate stocks, corporate bonds,

rights, warrants, real estate investment

23750 Federal Register / Vol. 66, No. 90 / Wednesday, May 9, 2001 / Notices

8 15 U.S.C. 78k–1.

9See telephone conversation between Rebekah

Liu, Special Counsel, SEC, Cyndi Nguyen, Attorney,

SEC and Eric Moss, Office of General Counsel,

NASD Regulation on May 3, 2001.

10 15 U.S.C. 78o–3(b)(6).

11 15 U.S.C. 78o–3(g)(3).

12 15 U.S.C. 78s(b)(3)(A)(i).

13 17 CFR 240.19b–4(f)(1).

14 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

trusts, collateralized mortgage

obligations, and securities of closed-end

companies registered pursuant to the

Investment Company Act of 1940. These

exams test candidates’ knowledge of

securities industry rules and regulations

pertinent to the respective products

listed above.

The staff of the Qualifications

Department of NASD Regulation, in

conjunction with an industry

committee, recently undertook a review

of the General Securities Principal and

Corporate Securities Limited

Representative examination programs.

As a result of this review, NASD

Regulation is proposing revisions to the

examination specifications, study

outlines, and question banks for the

Series 24 and Series 62 examination

programs to reflect changes to the rules

and regulations covered by the

examinations, including Commission

rules relating to Regulation M, the

Investment Advisers Act of 1940, and

section 11A of the Act 8 and the rules

thereunder. The proposed revisions also

reflect changes to NASD rules and

regulations, as well as to the Municipal

Securities Rulemaking Board Rules G–

37 and G–38.

To adequately test the material

covered in the revised programs, the

number of questions on the Series 24

examination has increased from 125 to

150 questions, and the number of

questions on the Series 62 examination

has increased from 100 to 115 questions.

The allowed testing time will change to

31⁄2 hours for the Series 24 examination

and 21⁄2 hours for the Series 62

examination. The passing score for the

examinations will continue to be 70

percent .9

2. Statutory Basis

NASD Regulation believes that the

proposed revisions are consistent with

the provisions of sections 15A(b)(6) 10

and 15A(g)(3) of the Act,11 which

authorize the NASD to prescribe

standards of training, experience, and

competence for persons associated with

NASD members.

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 pursuant to section

19(b)(3)(A)(i) of the Act 12 and

subparagraph (f)(1) of Rule 19b–4

thereunder,13 in that the foregoing

proposed rule change constitutes a

stated policy, practice, or interpretation

with respect to the meaning,

administration, or enforcement of an

existing rule of the self-regulatory

organization. NASD Regulation

proposes to implement the revised

Series 24 and 62 examination programs

on July 2, 2001.

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.

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 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

the principal office of the NASD. All

submissions should refer to file number

SR–NASD–2001–23 and should be

submitted by May 30, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–11638 Filed 5–8–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44251; File No. SR–NASD–

2001–19]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the National Association of Securities

Dealers, Inc. Relating to Reporting

Requirements for Clearing Members

May 3, 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 March 21,

2001, the National Association of

Securities Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’), through its wholly

owned subsidiary, NASD Regulation,

Inc. (‘‘NASD Regulation’’) 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 NASD Regulation. 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 Substance of

the Proposed Rule Change

NASD Regulation is proposing to

adopt Rule 3150 to require all members

that are clearing firms to report certain

data to the NASD Regulation

Department of Member Regulation

(‘‘Member Regulation’’) on a daily basis.

Proposed new language is in italics.

* * * * *

3100. BOOKS AND RECORDS, AND

FINANCIAL CONDITION

* * * * *

3150. Reporting Requirements for Clearing

Firms

Each member that is a clearing firm shall

be required to report to the Association on a

daily basis and in such format as the

Association may require, prescribed data

pertaining to the member and any brokerdealer for which it clears. A clearing firm

may enter into an agreement with a third

party pursuant to which the third party

agrees to fulfill the clearing firm’s obligations