Document ID: SEC-2008-1478-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2008-10-29T04:00Z

[Federal Register: October 29, 2008 (Volume 73, Number 210)]
[Notices]               
[Page 64374-64376]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29oc08-101]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58832; File No. SR-FINRA-2008-053]

 
Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing of Proposed Rule Change To Amend 
Section 4(c) of Schedule A of the FINRA By-Laws To Increase Certain 
Qualification Examination Fees

October 22, 2008.
    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 15, 2008, 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. 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.
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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(c) of Schedule A to the FINRA 
By-Laws (``Schedule A'') to increase certain qualification examination 
fees. Below is the text of the proposed rule change. Proposed new 
language is italicized; proposed deletions are in brackets.
* * * * *
    Schedule A to the By-Laws of the Corporation
* * * * *
Section 4--Fees
    (a) and (b) No change
    (c) The following fees shall be assessed to each individual who 
registers to take an examination as described below. These fees are in 
addition to the registration fee described in paragraph (b).

[[Page 64375]]

Series 4.............................  Registered Options Principal...........  [$80] $90
Series 6.............................  Investment Company Products/Variable     [$75] $85
                                        Contracts Representative.
Series 7.............................  General Securities Representative......  [$250] $265
Series 9.............................  General Securities Sales Supervisor--    [$60] $70
                                        Options Module.
Series 10............................  General Securities Sales Supervisor--    [$100] $110
                                        General Module.
Series 11............................  Assistant Representative--Order          [$60] $70
                                        Processing.
Series 14............................  Compliance Official....................  [$300] $320
Series 16............................  Supervisory Analyst....................  [$200] $210
Series 17............................  Limited Registered Representative......  [$65] $70
Series 22............................  Direct Participation Programs            [$75] $85
                                        Representative.
Series 23............................  General Securities Principal Sales       [$75] $85
                                        Supervisor Module.
Series 24............................  General Securities Principal...........  [$95] $105
Series 26............................  Investment Company Products/Variable     [$75] $85
                                        Contracts Principal.
Series 27............................  Financial and Operations Principal.....  [$95] $105
Series 28............................  Introducing Broker[/]-Dealer Financial   [$75] $85
                                        and Operations Principal.
Series 37............................  Canada Module of S7 (Options Required).  [$150] $160
Series 38............................  Canada Module of S7 (No Options          [$150] $160
                                        Required).
Series 39............................  Direct Participation Programs Principal  [$75] $80
Series 42............................  Registered Options Representative......  [$60] $65
Series 55............................  Limited Representative--Equity Trader..  [$85] $95
Series 62............................  Corporate Securities Limited             [$75] $80
                                        Representative.
Series 72............................  Government Securities Representative...  [$85] $95
Series 82............................  Limited Representative--Private          [$75] $80
                                        Securities Offering.
Series 86............................  Research Analyst--Analysis.............  [$150] $160
Series 87............................  Research Analyst--Regulatory...........  [$105] $115

    (1) through (3) No change
    (d) through (h) No change
* * * * *

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
    Any person associated with a member firm who is engaged in the 
securities business of the firm must register with FINRA. As part of 
the registration process, securities professionals must pass a 
qualification examination to demonstrate competence in each area in 
which they intend to work. These mandatory qualification examinations 
cover a broad range of subjects on the markets, products, a person's 
responsibilities in a given position, securities industry rules and the 
regulatory structure. Some qualification examinations are sponsored 
(i.e., developed) solely by FINRA while others are sponsored by the 
Municipal Securities Rulemaking Board (``MSRB''), the North American 
Securities Administrators Association (``NASAA''), the National Futures 
Association (``NFA''), the Federal Deposit Insurance Corporation 
(``FDIC''), other self-regulatory organizations (``SROs'') or jointly 
among these entities.\3\
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    \3\ For example, FINRA administers and delivers the Series 6, 24 
and 27 examinations, which are sponsored by FINRA. FINRA also 
administers and delivers client-sponsored examinations, such as the 
Series 9 and 10, which are sponsored jointly by several SROs (NYSE 
Alternext U.S. LLC (``NYSE Alternext'') (formerly American Stock 
Exchange), Chicago Board Options Exchange (``CBOE''), MSRB, FINRA, 
NYSE Arca, Inc. (``NYSE Arca'') (formerly Pacific Stock Exchange, 
Inc.) and NASDAQ OMX PHLX, Inc. (``Phlx'') (formerly Philadelphia 
Stock Exchange)).
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    FINRA administers qualification examinations via computer through 
the PROCTOR[supreg] system \4\ at test centers operated by vendors 
under contract with FINRA. FINRA charges an examination fee to 
candidates for FINRA-sponsored and co-sponsored examinations. For 
qualification examinations sponsored by a FINRA client and 
administered/delivered by FINRA, FINRA charges a delivery fee that 
represents either a portion of or the entire examination fee for a 
particular examination.
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    \4\ PROCTOR[supreg] is a technology system that supports 
computer-based testing and training.
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    The proposed rule change would amend Schedule A to increase certain 
qualification examination fees.\5\ Each year, FINRA conducts a 
comprehensive review of the examination fee structure, including an 
analysis of the costs of developing, administering and delivering 
qualification examinations. FINRA's 2008 review revealed that certain 
operational costs have increased and will continue to increase over the 
next few years. In particular, these costs consist of: (1) the cost of 
providing the extensive network of test delivery centers; and (2) 
technology costs required to maintain the PROCTOR[supreg] system. Based 
on these findings, the proposed rule change would increase examination 
fees with no single examination increasing more than $20. FINRA 
believes that the proposed rule change would result in a better 
alignment of program fees to associated operating costs.
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    \5\ Schedule A sets forth examination fees for those 
examinations that are sponsored or co-sponsored by FINRA and/or that 
may be required by FINRA for its members.
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    Specifically, the proposed rule change would amend Schedule A as 
follows:

Series 4.............................  Registered Options Principal (Sponsored  From $80 to $90
                                        jointly by NYSE Alternext,CBOE, FINRA,
                                        NYSE Arca and Phlx).
Series 6.............................  Investment Company Products/Variable     From $75 to $85
                                        Contracts Representative.
Series 7.............................  General Securities Representative......  From $250 to $265
Series 9.............................  General Securities Sales Supervisor--    From $60 to $70
                                        Options Module (Sponsored jointly by
                                        NYSE Alternext, CBOE, FINRA, MSRB,
                                        NYSE Arca and Phlx).

[[Page 64376]]

Series 10............................  General Securities Sales Supervisor--    From $100 to $110
                                        General Module (Sponsored jointly by
                                        NYSE Alternext, CBOE, FINRA, MSRB,
                                        NYSE Arca and Phlx).
Series 11............................  Assistant Representative--Order          From $60 to $70
                                        Processing.
Series 14............................  Compliance Official....................  From $300 to $320
Series 16............................  Supervisory Analyst....................  From $200 to $210
Series 17............................  Limited Registered Representative......  From $65 to $70
Series 22............................  Direct Participation Programs            From $75 to $85
                                        Representative.
Series 23............................  General Securities Principal Sales       From $75 to $85
                                        Supervisor Module.
Series 24............................  General Securities Principal...........  From $95 to $105
Series 26............................  Investment Company Products/Variable      From $75 to $85
                                        Contracts Principal.
Series 27............................  Financial and Operations Principal.....  From $95 to $105
Series 28............................  Introducing Broker-Dealer Financial and  From $75 to $85
                                        Operations Principal.
Series 37............................  Canada Module of S7 (Options Required).  From $150 to $160
Series 38............................  Canada Module of S7 (No Options          From $150 to $160
                                        Required).
Series 39............................  Direct Participation Programs Principal  From $75 to $80
Series 42............................  Registered Options Representative......  From $60 to $65
Series 55............................  Limited Representative-Equity Trader...  From $85 to $95
Series 62............................  Corporate Securities Limited             From $75 to $80
                                        Representative.
Series 72............................  Government Securities Representative...  From $85 to $95
Series 82............................  Limited Representative--Private          From $75 to $80
                                        Securities Offering.
Series 86............................  Research Analyst--Analysis.............  From $150 to $160
Series 87............................  Research Analyst--Regulatory...........  From $105 to $115

    The effective date of the proposed rule change would be January 2, 
2009. Specifically, the proposed examination fees would become 
effective for ``120-day examination windows'' opened in the CRD[supreg] 
on or after January 2, 2009.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(5) of the Act,\6\ 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 proposed rule change to increase 
certain qualification examination fees in the fee table in Schedule A 
reflects FINRA's increased costs in developing, administering and 
delivering qualification examinations.
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    \6\ 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be 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 e-mail to rule-comments@sec.gov. Please include 
File Number SR-FINRA-2008-053 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-FINRA-2008-053. 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 Number SR-FINRA-2008-053 and should be 
submitted on or before November 19, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-25808 Filed 10-28-08; 8:45 am]

BILLING CODE 8011-01-P