Document ID: SEC-2009-1837-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Date by Which Eligible Registrants Must Complete a Firm-Element Continuing Education Program To Qualify To Engage in a Security Futures Business
Posted Date: 2009-12-30T05:00Z

[Federal Register: December 30, 2009 (Volume 74, Number 249)]
[Notices]               
[Page 69173-69175]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30de09-132]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61231; File No. SR-FINRA-2009-092]

 
Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change To Extend the Date by Which Eligible Registrants 
Must Complete a Firm-Element Continuing Education Program To Qualify To 
Engage in a Security Futures Business

December 23, 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 December 18, 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 and 
II below, which Items have been prepared by FINRA. The Commission is

[[Page 69174]]

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 a proposing to amend NASD Rule 1022 (Categories of 
Principal Registration) and NASD Rule 1032 (Categories of 
Representative Registration) to extend to December 31, 2012 the date by 
which eligible registrants must complete a firm-element continuing 
education program to qualify to engage in a security futures business.
    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, on the 
Commission's Web site at http://www.sec.gov, 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
    In 2003 [sic], FINRA modified the following registration categories 
to include the activities of engaging in and supervising securities 
futures: (1) Registered Options Principal (Series 4); (2) Limited 
Principal--General Securities Sales Supervisor (Series 9/10); (3) 
General Securities Representative (Series 7); and (4) Registered 
Options Representative (Series 42).\3\ FINRA also required that persons 
currently registered or becoming registered in these categories 
complete a firm-element continuing education requirement addressing 
security futures before they conducted any security futures business. 
FINRA instituted this continuing education requirement to ensure that 
registered personnel, who may not be familiar with risks, trading 
characteristics, terms and nomenclature of these products, or the fact 
that they are subject to the joint jurisdiction of the SEC and CFTC, 
receive the necessary training.
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    \3\ See Securities Exchange Act Release No. 46663 (October 15, 
2002), 67 FR 64944 (October 22, 2002) (Order Approving File No. SR-
NASD-2002-40).
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    FINRA initially considered replacing the firm-element continuing 
education requirement with revised qualification examinations for these 
categories that addressed security futures, however, such qualification 
examinations have not been implemented. In 2006, FINRA amended NASD 
Rule 1022 (Categories of Principal Registration) and Rule 1032 
(Categories of Representative Registration) to extend the date by which 
eligible registrants must complete the firm-element continuing 
education requirement to engage in a security futures business from 
December 31, 2006 to December 31, 2009.\4\ In view of the fact that 
there are no revised qualification examinations addressing security 
futures, FINRA intends to continue to require eligible registrants to 
complete the mandated firm-element continuing education requirement 
before engaging in any security futures business. The proposed rule 
change amends NASD Rule 1022 (Categories of Principal Registration) and 
NASD Rule 1032 (Categories of Representative Registration) to extend 
the date by which eligible registrants must complete the firm-element 
continuing education requirement to engage in a security futures 
business from December 31, 2009 to December 31, 2012.\5\
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    \4\ See Securities Exchange Act Release No. 54617 (October 17, 
2006), 71 FR 62498 (October 25, 2006) (Notice of Filing and 
Immediate Effectiveness of File No. SR-NASD-2006-118).
    \5\ The Commission notes that FINRA has proposed to amend its 
rule text to provide that, as of December 31, 2009, for eligible 
registrants, the deadline for completing a firm-element continuing 
education program in order to qualify to engage in security futures 
activities is the earlier of December 31, 2012, or one business day 
prior to the date a new examination that includes security futures 
products is offered.
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    FINRA has filed the proposed rule change for immediate 
effectiveness. The implementation date will be December 31, 2009.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\6\ which requires, among 
other things, that FINRA rules must be designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, and, in general, to protect investors and the 
public interest. The proposed rule change is necessary to continue to 
allow eligible registrants to complete a firm-element continuing 
education program that will qualify them to engage in a security 
futures business.
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    \6\ 15 U.S.C. 78o-3(b)(6).
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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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
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    The Exchange has requested that the Commission waive the 30-day 
operative delay to permit the proposed rule change to become operative 
on December 31, 2009. The Commission finds that waiver of the operative 
delay is consistent with the protection of investors and the public 
interest because the waiver will keep in place the ability of 
registered persons to qualify to sell security futures by completing a 
firm-element continuing education program in lieu of an exam. 
Therefore, the Commission designates the proposal operative on December 
31, 2009.\9\
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    \9\ For purposes only of waiving the 30-day operative delay, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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    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

[[Page 69175]]

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-2009-092 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-2009-092. 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-2009-092 and should be 
submitted on or before January 20, 2010.
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    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-30925 Filed 12-29-09; 8:45 am]

BILLING CODE 8010-01-P