Document ID: SEC-2009-1651-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of New Rule A-16, on Examination Fees
Posted Date: 2009-11-24T05:00Z

[Federal Register: November 24, 2009 (Volume 74, Number 225)]
[Notices]               
[Page 61402-61403]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24no09-92]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61023; File No. SR-MSRB-2009-16]

 
 Self-Regulatory Organizations; Municipal Securities Rulemaking 
Board; Notice of Filing and Immediate Effectiveness of New Rule A-16, 
on Examination Fees

November 18, 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 November 5, 2009, the Municipal Securities Rulemaking Board 
(``MSRB'' or ``Board''), filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the MSRB. 
The MSRB has designated the proposed rule change as charging a fee 
applicable to brokers, dealers and municipal securities dealers 
pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposal effective upon filing with 
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

    The MSRB is filing new Rule A-16, which provides for examination 
fee assessments on persons taking certain qualification examinations as 
of January 4, 2010. Any person associated with a broker, dealer or 
municipal securities dealer (``dealer'') engaged in municipal 
securities activities who is a municipal securities representative, 
municipal securities principal, or municipal fund securities limited 
principal must take and pass a qualification examination to demonstrate 
competence in each area in which he or she intends to work. The Series 
51 (Municipal Fund Securities Limited Principal Qualification 
Examination), Series 52 (Municipal Securities Representative 
Qualification Examination), and Series 53 (Municipal Securities 
Principal Qualification Examination) are developed, maintained, and 
owned by the MSRB. The new rule will assess a $60 examination 
development fee on each individual taking the Series 51, 52, or 53 
examinations. The text of the proposed rule change is available on the 
MSRB's Web site at www.msrb.org/msrb1/sec.asp, at the MSRB's principal 
office, 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, the MSRB 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. The MSRB 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
    The proposed rule change establishes examination fees that shall be 
assessed on persons taking certain qualification examinations as of 
January 4, 2010. Any person associated with a broker, dealer or 
municipal securities dealer (``dealer'') engaged in municipal 
securities activities who is a municipal securities representative, 
municipal securities principal, or municipal fund securities limited 
principal must take and pass a qualification examination to demonstrate 
competence in each area in which he or she intends to work. The Series 
51 (Municipal Fund Securities Limited Principal Qualification 
Examination), Series 52 (Municipal Securities Representative 
Qualification Examination), and Series 53 (Municipal Securities 
Principal Qualification Examination) are developed, maintained, and 
owned by the MSRB. These examinations are intended to safeguard the 
investing public by helping to ensure that certain persons associated 
with dealers meet minimum qualifications to perform their job. Given 
this purpose, the examinations seek to measure accurately and reliably 
the degree to which each candidate possesses the knowledge, skills and 
abilities necessary to perform his or her job. The Series 51 
examination is 1\1/2\ hours and consists of 60 multiple-choice 
questions, and the Series 52 and 53 examinations are 3 hours each and 
consist of 100 multiple-choice questions per examination.
    Currently, the fee assessed by the Financial Industry Regulatory 
Authority (``FINRA''), which administers the examination on behalf of 
the MSRB, is $85 for the Series 51 examination, $95 for the Series 52 
examination, and $95 for the Series 53 examination. At present, FINRA 
receives the entire amount of the fee for each of the examinations, 
which is intended to cover the cost to FINRA to schedule, administer 
the examinations, maintain records, and undertake systems changes. 
Pursuant to the proposed rule change, the MSRB will assess a 
development fee of $60 per examination, which will be collected by 
FINRA along with FINRA's administrative fee. With the addition of the 
MSRB development fee, the total fee will be $145 for the Series 51 
examination, $155 for the Series 52 examination, and $155 for the 
Series 53 examination. On a periodic basis, FINRA will remit the fees 
it collects on behalf of the MSRB for development of the examinations 
to the MSRB and will retain the administrative fees it collects for the 
delivery of the examinations.
    The proposed MSRB development fee is intended to partially cover 
costs incurred to develop and implement the examinations, costs 
associated with monitoring the examinations for effectiveness, and 
costs associated with updating the examinations' content and questions. 
The development fees will be effective as of January 4, 2010.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with 
the requirements of Section 15B(b)(2)(J) of the Act,\5\ which requires, 
in pertinent part, that the MSRB's rules shall:
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    \5\ 15 U.S.C. 78o-4(b)(2)(J).

    Provide that each municipal securities broker and each municipal 
securities dealer shall pay to the Board such reasonable fees

[[Page 61403]]

and charges as may be necessary or appropriate to defray the costs 
and expenses of operating and administering the Board. Such rules 
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shall specify the amount of such fees and charges.

    The proposed rule change provides for reasonable fees to partially 
offset costs associated with the development of the Series 51, 52, and 
53 examinations.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Board does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act since it would apply equally to 
all individuals who take the Series 51, 52, and 53 examinations.

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)(ii) of the Act \6\ and Rule 19b-4(f)(2) thereunder,\7\ in 
that new Rule A-16 charges fees applicable to brokers, dealers and 
municipal securities dealers. The proposed rule change applies to 
individuals taking the Series 51, 52, or 53 examinations on or after 
January 4, 2010. 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.\8\
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
    \8\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
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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:

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-MSRB-2009-16 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-MSRB-2009-16. 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 the MSRB. 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-MSRB-2009-16 and should be 
submitted on or before December 15, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-28120 Filed 11-23-09; 8:45 am]

BILLING CODE 8011-01-P