Document ID: SEC-2009-1321-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee for Investment Banking Representative Examination
Posted Date: 2009-09-16T04:00Z

[Federal Register: September 16, 2009 (Volume 74, Number 178)]
[Notices]               
[Page 47633-47634]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16se09-100]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60640; File No. SR-FINRA-2009-056]

 
Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change Relating to Fee for Investment Banking 
Representative Examination

September 9, 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 August 26, 2009, 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.
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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 Schedule A to the FINRA By-Laws to 
establish a fee for the new Investment Banking Representative 
Examination (``Series 79'').
    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
    On April 13, 2009, the Commission approved NASD Rule 1032(i), which 
establishes a new limited representative category--Limited 
Representative-Investment Banking--for persons whose activities are 
limited to investment banking and those who supervise such 
activities.\5\ FINRA has developed the Series 79 program to ensure that 
persons associated with FINRA members seeking to register as investment 
banking representatives have attained specified levels of competence 
and knowledge. On July 28, 2009, FINRA filed with the Commission the 
Series 79 selection specifications and content outline.\6\ The 
examination will be implemented on November 2, 2009.\7\
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    \5\ See Securities Exchange Act Release No. 59757 (April 13, 
2009), 74 FR 18268 (April 21, 2009) (Order Approving File No. SR-
FINRA-2009-006).
    \6\ See Securities Exchange Act Release No. 60424 (August 4, 
2009), 74 FR 39984 (August 10, 2009) (Notice of Filing and Immediate 
Effectiveness; File No. SR-FINRA-2009-049).
    \7\ See Regulatory Notice 09-41 (July 2009).
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    The proposed rule change would amend Section 4 of Schedule A to 
FINRA By-Laws to establish a fee of $265 for an associated person to 
take the Series 79 exam. The fee is the same as that for the General 
Securities Representative exam (``Series 7'') \8\ and is based on the 
costs to FINRA to develop and administer the exam.
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    \8\ Within the six-month period following the implementation of 
Rule 1032(i), individuals who are registered as a General Securities 
Representative and function in a member's investment banking 
business line as described in Rule 1032(i) may opt in to the Limited 
Representative-Investment Banking registration category. After the 
six-month opt-in period, individuals who perform the job functions 
set out in Rule 1032(i) will be required to pass the Series 79 exam 
in lieu of the General Securities Representative (``Series 7'') exam 
(or equivalent exams), unless subject to an exception in the Rule.
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    FINRA has filed the proposed rule change for immediate 
effectiveness. The implementation date will be November 2, 2009, to 
coincide with the implementation date of NASD Rule 1032(i).
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
Act, including Section 15A(b)(5) of the Act,\9\ 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 the proposed rule change is designed to 
accomplish these ends by equitably assessing the costs associated with 
developing and administering the examination program.
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    \9\ 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) of the Act \10\ and subparagraph (f)(2) of Rule 19b-4 
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)(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 47634]]

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml ); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-FINRA-2009-056 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-2009-056. 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 publicly available. All 
submissions should refer to File Number SR-FINRA-2009-056 and should be 
submitted on or before October 7, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-22246 Filed 9-15-09; 8:45 am]

BILLING CODE 8010-01-P