80 FR 16713 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Section 4(c) of Schedule A to the FINRA By-Laws To Increase Qualification Examination Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 60 (March 30, 2015)
Federal Register Volume 80, Issue 60 (March 30, 2015)
| Page Range | 16713-16716 | |
| FR Document | 2015-07133 |
[Federal Register Volume 80, Number 60 (Monday, March 30, 2015)] [Notices] [Pages 16713-16716] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-07133] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74568; File No. SR-FINRA-2015-006] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Section 4(c) of Schedule A to the FINRA By-Laws To Increase Qualification Examination Fees March 24, 2015. 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 10, 2015, 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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 to increase qualification examination fees. Below is the text of the proposed rule change. Proposed new language is in italics; proposed deletions are in brackets. * * * * * SCHEDULE A TO THE BY-LAWS OF THE CORPORATION * * * * * Section 4--Fees (a) through (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) and any other fees that the owner of an examination that FINRA administers may assess. Series 4 Registered Options Principal.......... [$100] $105 Series 6 Investment Company Products/Variable [$95] $100 Contracts Representative. Series 7 General Securities Representative..... [$290] $305 Series 9 General Securities Sales Supervisor-- [$75] $80 Options Module. Series 10 General Securities Sales Supervisor-- [$120] $125 General Module. Series 11 Assistant Representative--Order [$75] $80 Processing. Series 14 Compliance Official.................. [$335] $350 Series 16 Supervisory Analyst.................. [$230] $240 Series 17 Limited Registered Representative.... [$75] $80 Series 22 Direct Participation Programs [$95] $100 Representative. Series 23 General Securities Principal Sales [$95] $100 Supervisor Module. Series 24 General Securities Principal......... [$115] $120 Series 26 Investment Company Products/Variable [$95] $100 Contracts Principal. Series 27 Financial and Operations Principal... [$115] $120 [[Page 16714]] Series 28 Introducing Broker-Dealer Financial [$95] $100 and Operations Principal. Series 37 Canada Module of S7 (Options [$175] $185 Required). Series 38 Canada Module of S7 (No Options [$175] $185 Required). Series 39 Direct Participation Programs [$90] $95 Principal. Series 42 Registered Options Representative.... [$70] $75 Series 51 Municipal Fund Securities Limited [$95] $105 Principal. Series 52 Municipal Securities Representative.. [$120] $130 Series 53 Municipal Securities Principal....... [$105] $115 Series 55 Limited Representative--Equity Trader [$105] $110 Series 62 Corporate Securities Limited [$90] $95 Representative. Series 72 Government Securities Representative. [$105] $110 Series 79 Investment Banking Qualification [$290] $305 Examination. Series 82 Limited Representative--Private [$90] $95 Securities Offering. Series 86 Research Analyst--Analysis........... [$175] $185 Series 87 Research Analyst--Regulatory......... [$125] $130 Series 99 Operations Professional.............. [$125] $130 (1) through (4) No Change. (d) through (i) 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 The proposed rule change amends Section 4(c) of Schedule A of the FINRA By-Laws to increase qualification examination fees. Persons engaged in the investment banking or securities business of a FINRA member who function as principals or representatives are required to register with FINRA in each category of registration appropriate to their functions.\5\ Such individuals must pass an appropriate qualification examination before their registration can become effective. These mandatory qualification examinations cover a broad range of subjects regarding financial markets and products, individual responsibilities, securities industry rules, and regulatory structure. FINRA develops, maintains, and delivers all qualification examinations for individuals who are registered or seeking registration with FINRA. FINRA also administers and delivers examinations sponsored (i.e., developed) by the Municipal Securities Rulemaking Board (``MSRB'') and other self-regulatory organizations, the North American Securities Administrators Association, the National Futures Association, and the Federal Deposit Insurance Corporation. --------------------------------------------------------------------------- \5\ See NASD Rules 1021(a) and 1031(a), and NASD Rules 1022 and 1032. See also NASD Rules 1041 and 1050 and FINRA Rule 1230(b)(6) regarding the qualification and registration requirements for Order Processing Assistant Representatives, Research Analysts and Operations Professionals, respectively. --------------------------------------------------------------------------- FINRA currently administers examinations electronically through the PROCTOR[supreg] system \6\ at testing centers operated by vendors under contract with FINRA. FINRA charges an examination fee to candidates for FINRA-sponsored and co-sponsored examinations to cover the development, maintenance and delivery of these examinations. For qualification examinations sponsored by a FINRA client and administered by FINRA, FINRA charges a delivery fee that represents either a portion of or the entire examination fee for the examination.\7\ --------------------------------------------------------------------------- \6\ PROCTOR is a computer system that is specifically designed for the administration and delivery of computer-based testing and training. \7\ The delivery fee represents a portion of the entire examination fee when a FINRA client has established an additional fee for an examination that it sponsors. For example, the fee to take the Series 51 (Municipal Fund Securities Limited Principal) examination is currently $155. Of this amount, $95 is the FINRA administration and delivery fee, and $60 is the development fee determined by the FINRA client, the MSRB. See MSRB Rule A-16. --------------------------------------------------------------------------- FINRA regularly conducts a comprehensive review of the examination fee structure, including an analysis of the costs associated with developing, administering, and delivering each examination, so that FINRA may better understand whether pricing changes are warranted and evaluate the financial condition of each qualification examination program. Based on the results of the review, FINRA may propose changes to better align the examination fee structure with the costs associated with the programs. When changes are warranted, fees are set at levels that are expected to meet cost and revenue objectives over a two-to- three year period to provide firms and examination candidates with a predictable cost environment. In this regard, the most recent review revealed that certain operational costs have increased and, based on current information, will continue to increase over the next few years. In particular, these increased costs consist of: (1) Fees that vendors charge FINRA for delivering qualification examinations through their networks of test delivery centers; (2) staff labor associated with the development and maintenance of the qualification examinations; and (3) PROCTOR system maintenance and enhancement expenses.\8\ FINRA believes that the proposed rule change will help to better align the examination program fees with these increased costs. Therefore, FINRA is proposing to amend Section 4(c) of Schedule A to the FINRA By-Laws to increase the fees for the qualification examinations set forth in Section 4(c). --------------------------------------------------------------------------- \8\ While delivery costs for examinations have increased over the last three years, delivery costs for qualification examinations are scheduled to stabilize in 2015 and 2016 based on FINRA's recently negotiated agreements with vendors that deliver the qualification examinations through their networks of test delivery centers. --------------------------------------------------------------------------- FINRA has filed the proposed rule change for immediate effectiveness. FINRA is proposing that the implementation date of the proposed rule change will be April 1, 2015. Specifically, the proposed qualification examination fees would become effective for examination requests made in the CRD system on or after April 1, 2015. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(5) of the Act,\9\ which requires, among other things, that FINRA rules provide for the equitable [[Page 16715]] 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78o-3(b)(5). --------------------------------------------------------------------------- FINRA believes that the proposed rule change constitutes an equitable allocation of fees as the qualification examination fees will be assessed only on those individuals who take qualification examinations. In addition, all candidates who register for a particular qualification examination will be charged the same amount. FINRA further believes that the proposed qualification examination changes are reasonable because they will more closely align the overall examination program fees with the overall costs associated with the programs. In this regard, FINRA notes that the last time that it increased fees for any of the qualification examinations set forth in Schedule A to the FINRA By-Laws was April 2012.\10\ Since that time, FINRA's examination program expenses have increased and, based on current information, will continue to increase over the next few years. Specifically, FINRA has experienced cost increases relating to: (1) Fees that vendors charge FINRA for delivering qualification examinations through their networks of test delivery centers; (2) staff labor associated with the development and maintenance of the qualification examinations; and (3) PROCTOR system maintenance and enhancement expenses. \11\ --------------------------------------------------------------------------- \10\ See Securities Exchange Act Release No. 66465 (February 24, 2012), 77 FR 12635 (March 1, 2012) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2012-009). \11\ See supra note 8. --------------------------------------------------------------------------- To better align the fees and costs associated with the examination programs, FINRA is proposing modest fee increases. In this regard, FINRA notes that no qualification examination fee will increase by more than $15 and the majority of examination fees will increase by only $5. Accordingly, FINRA believes that the proposed qualification examination fee changes are equitably allocated and reasonable. 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. FINRA believes that the proposed qualification examination fee changes have limited economic impacts on the industry. Economic Impact Assessment (a) Need for the Rule FINRA seeks to set the qualification examination fees in such a manner as to meet expected program costs and revenues over a two-to- three year period in order to provide firms and examination candidates with a predicable cost environment. FINRA has determined that operational costs for the program have increased since FINRA last adjusted the fees in April 2012. FINRA also projects that these operational costs will continue to increase. As a result, FINRA has determined that a fee increase is needed to better align the examination program fees to meet these increased costs. (b) Economic Baseline The current examination fee structure and expected costs associated with the examination programs serve as an economic baseline for the proposed rule change. Qualification examination fees are charged directly to members that act as sponsors for individuals seeking to obtain qualifications through the examination programs. While some members may choose to absorb these costs directly, other members directly pass on the costs of taking qualification examinations to the sponsored individual. FINRA's qualification examination program expenses have increased over the past three years and are expected to continue to rise in the next few years. Specifically, the following expenses have increased and are expected to further increase in the next few years: (1) Fees that vendors charge FINRA for delivering qualification examinations through their networks of test delivery centers; (2) FINRA staff labor expenses associated with the development and maintenance of the qualification examinations; and (3) technology maintenance and enhancement expenses.\12\ --------------------------------------------------------------------------- \12\ See supra note 8. --------------------------------------------------------------------------- In 2014, the total volume of qualification examinations was 130,830, sponsored by 2,813 member firms. The average volume per member firm was 47 qualification examinations. The median volume per member firm was four qualification examinations, as large member firms that employed more representatives contributed to the majority of the qualification examination enrollments. For example, the top 25 member firms with the highest qualification examination enrollments accounted for 52% of the total volume with an average of 2,704 enrollments per firm. In contrast, 70% of the overall member firms had less than 10 qualification examination enrollments. Equivalently in 2014, the number of persons enrolling for qualification examinations was 95,306, and the average number of enrollments per person was 1.4. Historically, the fees collected by the qualification examination programs have provided a limited but stable contribution to FINRA's overall revenue. In the absence of the proposed rule change, the qualification examination programs would not be able to meet the target contribution margin, in addition to, covering increased costs in the coming years. (c) Economic Impacts Assuming stable qualification examination delivery volumes (defined by the number and type of qualification examinations provided), the contribution margin of the qualification examination programs is estimated to reach the target level in 2015 and 2016 if the proposed fee increases become effective in April 2015. Compared to 2014, the total increase in qualification examination fees is estimated to be $0.94 million in 2015 and $1.25 million in 2016. At the individual examination level, no qualification examination fee will increase by more than $15 and the majority of qualification examination fees will increase by $5. The increases in the qualification examination fees would impose a burden on members or individuals that pay for these examinations. Compared to the current fee structure, the average increase in qualification examination fees per member firm is estimated to be $334 in 2015 and $446 in 2016. The median fee increase per member firm is estimated to be $34 in 2015 and $45 in 2016, as large member firms are expected to account for the majority of the examination enrollments. For example, the top 25 member firms with the highest enrollments are estimated to have an average increase of $18,459 in 2015 and $24,612 in 2016. For the member firms with less than 10 enrollments (which accounted for 70% of the overall member firms), the average increase per firm is estimated to be $26 in 2015 and $35 in 2016. In contrast with the dollar amount increases, assuming stable qualification examination delivery volumes, the percentage increases in qualification examination fees for member firms vary in a narrow range of 3% to 5% with an average of 4% in 2015 and 4% to 7% with an average of 5% in 2016. At the individual level, compared to 2014, the average qualification examination fee increase per person is estimated to be $10 in 2015 and $13 in 2016. [[Page 16716]] FINRA does not believe that the proposed rule change would impact the competition among member firms, those who seek qualifications, or to the provision of member services. Based on the economic impact assessment, the proposed increases in qualification examination fees are limited. Moreover, they do not impose significantly different impacts on member firms with different sizes or business models. Furthermore, FINRA does not believe that the proposed rule change will create any competitive advantage for any individuals as all candidates who register for a particular qualification examination will be charged the same amount. 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 \13\ and paragraph (f)(2) of Rule 19b-4 thereunder. \14\ At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-FINRA-2015-006 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-FINRA-2015-006. This file number should be included on the subject line if email 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 Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 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-2015-006 and should be submitted on or before April 20, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. \15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-07133 Filed 3-27-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 60 / Monday, March 30, 2015 / Notices 16713
management.31 Based on a cost of The public may view the background 2015, Financial Industry Regulatory
$0.0051295 per dollar of assets under documentation for this information Authority, Inc. (‘‘FINRA’’) filed with the
management for small funds, collection at the following Web site, Securities and Exchange Commission
$0.0005041 per dollar of assets under www.reginfo.gov. Comments should be (‘‘SEC’’ or ‘‘Commission’’) the proposed
management for medium-sized funds directed to: (i) Desk Officer for the rule change as described in Items I, II,
and $0.0000009 per dollar of assets Securities and Exchange Commission, and III below, which Items have been
under management for large funds, the Office of Information and Regulatory prepared by FINRA. FINRA has
staff estimates compliance with rule Affairs, Office of Management and designated the proposed rule change as
2–7 for these unregistered money Budget, Room 10102, New Executive ‘‘establishing or changing a due, fee or
market funds totals $3.9 million Office Building, Washington, DC 20503, other charge’’ under Section
annually.32 or by sending an email to: Shagufta_ 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
Consistent with estimates made in the Ahmed@omb.eop.gov; and (ii) Pamela 4(f)(2) thereunder, 4 which renders the
rule 2a–7 submissions, Commission Dyson, Director/Chief Information proposal effective upon receipt of this
staff estimates that unregistered money Officer, Securities and Exchange filing by the Commission. The
market funds also incur capital costs to Commission, c/o Remi Pavlik-Simon, Commission is publishing this notice to
create computer programs for 100 F Street NE., Washington, DC 20549 solicit comments on the proposed rule
maintaining and preserving compliance or send an email to: PRA_Mailbox@ change from interested persons.
records for rule 2a–7 of $0.0000132 per sec.gov. Comments must be submitted to
dollar of assets under management. OMB within 30 days of this notice. I. Self-Regulatory Organization’s
Based on the assets under management Statement of the Terms of Substance of
Dated: March 24, 2015. the Proposed Rule Change
figures described above, staff estimates Brent J. Fields,
annual capital costs for all unregistered Secretary. FINRA is proposing to amend Section
money market funds of $1.98 million.33 [FR Doc. 2015–07128 Filed 3–27–15; 8:45 am] 4(c) of Schedule A to the FINRA By-
Commission staff further estimates Laws to increase qualification
BILLING CODE 8011–01–P
that, even absent the requirements of examination fees.
rule 2a–7, money market funds would Below is the text of the proposed rule
spend at least half of the amounts SECURITIES AND EXCHANGE change. Proposed new language is in
described above for record preservation COMMISSION italics; proposed deletions are in
($2.0 million) and for capital costs brackets.
($0.99 million). Commission staff [Release No. 34–74568; File No. SR–FINRA–
2015–006] * * * * *
concludes that the aggregate annual
costs of compliance with the rule are SCHEDULE A TO THE BY-LAWS OF
Self-Regulatory Organizations;
$2.0 million for record preservation and Financial Industry Regulatory THE CORPORATION
$0.99 million for capital costs. Authority, Inc.; Notice of Filing and * * * * *
The collections of information
Immediate Effectiveness of Proposed Section 4—Fees
required for unregistered money market
Rule Change To Amend Section 4(c) of (a) through (b) No Change.
funds by rule 12d1–1 are necessary in
Schedule A to the FINRA By-Laws To
order for acquiring funds to able to Increase Qualification Examination (c) The following fees shall be
obtain the benefits described above. Fees assessed to each individual who
Notices to the Commission will not be registers to take an examination as
kept confidential. An agency may not March 24, 2015. described below. These fees are in
conduct or sponsor, and a person is not Pursuant to Section 19(b)(1) of the addition to the registration fee described
required to respond to, a collection of Securities Exchange Act of 1934 in paragraph (b) and any other fees that
information unless it displays a (‘‘Act’’) 1 and Rule 19b–4 thereunder, 2 the owner of an examination that FINRA
currently valid control number. notice is hereby given that on March 10, administers may assess.
Series 4 Registered Options Principal ............................................................................................................................................. [$100] $105
Series 6 Investment Company Products/Variable Contracts Representative ................................................................................ [$95] $100
Series 7 General Securities Representative ..................................................................................................................................... [$290] $305
Series 9 General Securities Sales Supervisor—Options Module ................................................................................................... [$75] $80
Series 10 General Securities Sales Supervisor—General Module ................................................................................................... [$120] $125
Series 11 Assistant Representative—Order Processing .................................................................................................................... [$75] $80
Series 14 Compliance Official ........................................................................................................................................................... [$335] $350
Series 16 Supervisory Analyst ........................................................................................................................................................... [$230] $240
Series 17 Limited Registered Representative .................................................................................................................................... [$75] $80
Series 22 Direct Participation Programs Representative .................................................................................................................. [$95] $100
Series 23 General Securities Principal Sales Supervisor Module ................................................................................................... [$95] $100
Series 24 General Securities Principal .............................................................................................................................................. [$115] $120
Series 26 Investment Company Products/Variable Contracts Principal ......................................................................................... [$95] $100
Series 27 Financial and Operations Principal .................................................................................................................................. [$115] $120
31 In the rule 2a–7 submissions, the staff large money market funds (funds with more than The estimate of cost per dollar of assets is the same
mstockstill on DSK4VPTVN1PROD with NOTICES
estimated that 757 registered money market funds $1 billion in assets under management). as that used in the rule 2a–7 submissions. See supra
have $3.8 trillion in assets under management, or 32 This estimate is based on the following note 12.
$5 billion in assets under management per calculations: 30 unregistered money market funds 33 This estimate is based on the following
registered money market fund. The staff further calculation: $150 billion × 0.0000132 = $1.98
× $5 billion = $150 billion. ($150 billion × 0.2% ×
estimated that 0.2% of those assets are held in small million.
money market funds (funds with less than $50 $0.0051295) = $1.5 million for small funds. ($150
billion × 3% × 0.0005041) = $2.3 million for
1 15 U.S.C. 78s(b)(1).
million in assets under management), 3% are held
in medium-sized money market funds (funds with medium-sized funds. ($150 billion × 96.8% × 2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
$50 million to $1 billion in assets under 0.0000009) = $0.1 million for large funds. $1.5
management), and the remaining assets are held in million + $2.3 million + $0.1 million = $3.9 million. 4 17 CFR 240.19b–4(f)(2).
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Series 28 Introducing Broker-Dealer Financial and Operations Principal ..................................................................................... [$95] $100
Series 37 Canada Module of S7 (Options Required) ........................................................................................................................ [$175] $185
Series 38 Canada Module of S7 (No Options Required) .................................................................................................................. [$175] $185
Series 39 Direct Participation Programs Principal ........................................................................................................................... [$90] $95
Series 42 Registered Options Representative .................................................................................................................................... [$70] $75
Series 51 Municipal Fund Securities Limited Principal ................................................................................................................. [$95] $105
Series 52 Municipal Securities Representative ................................................................................................................................ [$120] $130
Series 53 Municipal Securities Principal .......................................................................................................................................... [$105] $115
Series 55 Limited Representative—Equity Trader ............................................................................................................................ [$105] $110
Series 62 Corporate Securities Limited Representative ................................................................................................................... [$90] $95
Series 72 Government Securities Representative ............................................................................................................................. [$105] $110
Series 79 Investment Banking Qualification Examination .............................................................................................................. [$290] $305
Series 82 Limited Representative—Private Securities Offering ....................................................................................................... [$90] $95
Series 86 Research Analyst—Analysis .............................................................................................................................................. [$175] $185
Series 87 Research Analyst—Regulatory ........................................................................................................................................... [$125] $130
Series 99 Operations Professional ..................................................................................................................................................... [$125] $130
(1) through (4) No Change. for individuals who are registered or When changes are warranted, fees are
(d) through (i) No Change. seeking registration with FINRA. FINRA set at levels that are expected to meet
* * * * * also administers and delivers cost and revenue objectives over a two-
examinations sponsored (i.e., to-three year period to provide firms
II. Self-Regulatory Organization’s developed) by the Municipal Securities and examination candidates with a
Statement of the Purpose of, and Rulemaking Board (‘‘MSRB’’) and other predictable cost environment.
Statutory Basis for, the Proposed Rule self-regulatory organizations, the North In this regard, the most recent review
Change American Securities Administrators revealed that certain operational costs
In its filing with the Commission, Association, the National Futures have increased and, based on current
FINRA included statements concerning Association, and the Federal Deposit information, will continue to increase
the purpose of and basis for the Insurance Corporation. over the next few years. In particular,
proposed rule change and discussed any FINRA currently administers these increased costs consist of: (1) Fees
comments it received on the proposed examinations electronically through the that vendors charge FINRA for
rule change. The text of these statements PROCTOR® system 6 at testing centers delivering qualification examinations
may be examined at the places specified operated by vendors under contract through their networks of test delivery
in Item IV below. FINRA has prepared with FINRA. FINRA charges an centers; (2) staff labor associated with
summaries, set forth in sections A, B, examination fee to candidates for the development and maintenance of
and C below, of the most significant FINRA-sponsored and co-sponsored the qualification examinations; and (3)
aspects of such statements. examinations to cover the development, PROCTOR system maintenance and
maintenance and delivery of these enhancement expenses.8 FINRA
A. Self-Regulatory Organization’s examinations. For qualification believes that the proposed rule change
Statement of the Purpose of, and examinations sponsored by a FINRA will help to better align the examination
Statutory Basis for, the Proposed Rule client and administered by FINRA, program fees with these increased costs.
Change FINRA charges a delivery fee that Therefore, FINRA is proposing to amend
1. Purpose represents either a portion of or the Section 4(c) of Schedule A to the FINRA
entire examination fee for the By-Laws to increase the fees for the
The proposed rule change amends examination.7 qualification examinations set forth in
Section 4(c) of Schedule A of the FINRA FINRA regularly conducts a Section 4(c).
By-Laws to increase qualification comprehensive review of the FINRA has filed the proposed rule
examination fees. Persons engaged in examination fee structure, including an change for immediate effectiveness.
the investment banking or securities analysis of the costs associated with FINRA is proposing that the
business of a FINRA member who developing, administering, and implementation date of the proposed
function as principals or representatives delivering each examination, so that rule change will be April 1, 2015.
are required to register with FINRA in FINRA may better understand whether Specifically, the proposed qualification
each category of registration appropriate pricing changes are warranted and examination fees would become
to their functions.5 Such individuals evaluate the financial condition of each effective for examination requests made
must pass an appropriate qualification qualification examination program. in the CRD system on or after April 1,
examination before their registration can Based on the results of the review, 2015.
become effective. These mandatory FINRA may propose changes to better
qualification examinations cover a align the examination fee structure with 2. Statutory Basis
broad range of subjects regarding the costs associated with the programs. FINRA believes that the proposed rule
financial markets and products, change is consistent with the provisions
individual responsibilities, securities 6 PROCTOR is a computer system that is
of Section 15A(b)(5) of the Act,9 which
industry rules, and regulatory structure. specifically designed for the administration and requires, among other things, that
delivery of computer-based testing and training.
FINRA develops, maintains, and 7 The delivery fee represents a portion of the
FINRA rules provide for the equitable
mstockstill on DSK4VPTVN1PROD with NOTICES
delivers all qualification examinations entire examination fee when a FINRA client has
8 While delivery costs for examinations have
established an additional fee for an examination
5 See NASD Rules 1021(a) and 1031(a), and NASD that it sponsors. For example, the fee to take the increased over the last three years, delivery costs for
Rules 1022 and 1032. See also NASD Rules 1041 Series 51 (Municipal Fund Securities Limited qualification examinations are scheduled to
and 1050 and FINRA Rule 1230(b)(6) regarding the Principal) examination is currently $155. Of this stabilize in 2015 and 2016 based on FINRA’s
qualification and registration requirements for amount, $95 is the FINRA administration and recently negotiated agreements with vendors that
Order Processing Assistant Representatives, delivery fee, and $60 is the development fee deliver the qualification examinations through their
Research Analysts and Operations Professionals, determined by the FINRA client, the MSRB. See networks of test delivery centers.
respectively. MSRB Rule A–16. 9 15 U.S.C. 78o–3(b)(5).
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FINRA does not believe that the and Exchange Commission, 100 F Street (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
proposed rule change would impact the NE., Washington, DC 20549–1090. notice is hereby given that on March 17,
competition among member firms, those All submissions should refer to File 2015, New York Stock Exchange LLC
who seek qualifications, or to the Number SR–FINRA–2015–006. This file (‘‘NYSE’’ or ‘‘Exchange’’) filed with the
provision of member services. Based on number should be included on the Securities and Exchange Commission
the economic impact assessment, the subject line if email is used. To help the (‘‘Commission’’) the proposed rule
proposed increases in qualification Commission process and review your change as described in Items I and II
examination fees are limited. Moreover, comments more efficiently, please use below, which Items have been prepared
they do not impose significantly only one method. The Commission will by the self-regulatory organization. The
different impacts on member firms with post all comments on the Commission’s Commission is publishing this notice to
different sizes or business models. Internet Web site (http://www.sec.gov/ solicit comments on the proposed rule
Furthermore, FINRA does not believe rules/sro.shtml). Copies of the change from interested persons.
that the proposed rule change will submission, all subsequent I. Self-Regulatory Organization’s
create any competitive advantage for amendments, all written statements Statement of the Terms of Substance of
any individuals as all candidates who with respect to the proposed rule the Proposed Rule Change
register for a particular qualification change that are filed with the
examination will be charged the same The Exchange proposes to amend
Commission, and all written Rule 13 (Orders and Modifiers) relating
amount. communications relating to the to pegging interest. The text of the
C. Self-Regulatory Organization’s proposed rule change between the proposed rule change is available on the
Statement on Comments on the Commission and any person, other than Exchange’s Web site at www.nyse.com,
Proposed Rule Change Received From those that may be withheld from the at the principal office of the Exchange,
Members, Participants or Others public in accordance with the and at the Commission’s Public
provisions of 5 U.S.C. 552, will be Reference Room.
Written comments were neither available for Web site viewing and
solicited nor received. printing in the Commission’s Public II. Self-Regulatory Organization’s
III. Date of Effectiveness of the Reference Room, 100 F Street NE., Statement of the Purpose of, and
Proposed Rule Change and Timing for Washington, DC 20549, on official Statutory Basis for, the Proposed Rule
Commission Action business days between the hours of Change
10:00 a.m. and 3:00 p.m. Copies of such In its filing with the Commission, the
The foregoing rule change has become
filing also will be available for self-regulatory organization included
effective pursuant to Section 19(b)(3)(A)
inspection and copying at the principal statements concerning the purpose of,
of the Act 13 and paragraph (f)(2) of Rule
office of FINRA. All comments received and basis for, the proposed rule change
19b–4 thereunder. 14 At any time within
will be posted without change; the and discussed any comments it received
60 days of the filing of the proposed rule
Commission does not edit personal on the proposed rule change. The text
change, the Commission summarily may
identifying information from of those statements may be examined at
temporarily suspend such rule change if
submissions. You should submit only the places specified in Item IV below.
it appears to the Commission that such
information that you wish to make The Exchange has prepared summaries,
action is necessary or appropriate in the
available publicly. All submissions set forth in sections A, B, and C below,
public interest, for the protection of
should refer to File Number SR–FINRA– of the most significant parts of such
investors, or otherwise in furtherance of
2015–006 and should be submitted on statements.
the purposes of the Act. If the
or before April 20, 2015.
Commission takes such action, the A. Self-Regulatory Organization’s
Commission shall institute proceedings For the Commission, by the Division of Statement of the Purpose of, and the
to determine whether the proposed rule Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
authority. 15
should be approved or disapproved. Change
Brent J. Fields,
IV. Solicitation of Comments Secretary. 1. Purpose
Interested persons are invited to [FR Doc. 2015–07133 Filed 3–27–15; 8:45 am] The Exchange proposes to amend
submit written data, views and BILLING CODE 8011–01–P Rule 13 relating to pegging interest to
arguments concerning the foregoing, provide that if the protected best bid or
including whether the proposed rule offer (‘‘PBBO’’) is not within the range
change is consistent with the Act. SECURITIES AND EXCHANGE of the pegging interest, the pegging
Comments may be submitted by any of COMMISSION interest would peg to the ‘‘next best-
the following methods: priced available displayable interest,’’
[Release No. 34–74570; File No. SR–NYSE– rather than the ‘‘next best-priced
Electronic Comments available interest.’’ This amendment
2015–12]
• Use the Commission’s Internet would therefore exclude non-displayed
comment form (http://www.sec.gov/ Self-Regulatory Organizations; New interest from consideration as part of the
rules/sro.shtml); or York Stock Exchange LLC; Notice of ‘‘next best-priced available interest’’
• Send an email to rule-comments@ Filing and Immediate Effectiveness of under the rule.
sec.gov. Please include File Number SR– Proposed Rule Change Amending Rule
Background
mstockstill on DSK4VPTVN1PROD with NOTICES
FINRA–2015–006 on the subject line. 13 Relating to Pegging Interest
Under current Rule 13, pegging
Paper Comments March 24, 2015. interest pegs to prices based on (i) a
• Send paper comments in triplicate Pursuant to Section 19(b)(1) 1 of the PBBO, which may be available on the
to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934 Exchange or an away market, or (ii)
13 15 U.S.C. 78s(b)(3)(A). 15 17 CFR 200.30–3(a)(12). 2 15 U.S.C. 78a.
14 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1). 3 17 CFR 240.19b–4.
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Document Created: 2015-12-18 11:32:35
Document Modified: 2015-12-18 11:32:35
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 16713 |
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