81 FR 834 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Series 9/10 Examination Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 4 (January 7, 2016)

Page Range		834-837
FR Document		2015-33311
Federal Register, Volume 81 Issue 4 (Thursday, January 7, 2016)
[Federal Register Volume 81, Number 4 (Thursday, January 7, 2016)]
[Notices]
[Pages 834-837]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-33311]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76812; File No. SR-FINRA-2015-058]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to the Series 9/10 Examination Program

December 31, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'' or ``SEA'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby 
given that on December 23, 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 
``constituting a stated policy, practice, or interpretation with 
respect to the meaning, administration, or enforcement of an existing 
rule'' under Section 19(b)(3)(A)(i) of the Act \3\ and Rule 19b-4(f)(1) 
thereunder,\4\ which

[[Page 835]]

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)(i).
    \4\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    FINRA is filing revisions to the content outline and selection 
specifications for the General Securities Sales Supervisor (Series 9/
10) examination program.\5\ The proposed revisions update the material 
to reflect changes to the laws, rules and regulations covered by the 
examination and to incorporate the functions and associated tasks 
currently performed by a General Securities Sales Supervisor. In 
addition, FINRA is proposing to make changes to the format of the 
content outline. FINRA is not proposing any textual changes to the By-
Laws, Schedules to the By-Laws or Rules of FINRA.
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    \5\ FINRA also is proposing corresponding revisions to the 
Series 9/10 question bank. Based on instruction from SEC staff, 
FINRA is submitting this filing for immediate effectiveness pursuant 
to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(1) thereunder, 
and is not filing the question bank for review. See Letter to Alden 
S. Adkins, Senior Vice President and General Counsel, NASD 
Regulation, from Belinda Blaine, Associate Director, Division of 
Market Regulation, SEC, dated July 24, 2000. The question bank is 
available for SEC review.
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    The revised content outline is attached.\6\ The Series 9/10 
selection specifications have been submitted to the Commission under 
separate cover with a request for confidential treatment pursuant to 
SEA Rule 24b-2.\7\
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    \6\ The Commission notes that the revised content outline is 
attached to the proposed rule change, and is available for viewing 
on FINRA's Web site. The content outline is not attached to this 
notice.
    \7\ 17 CFR 240.24b-2.
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    The text of [sic] 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
    Section 15A(g)(3) of the Act \8\ authorizes FINRA to prescribe 
standards of training, experience, and competence for persons 
associated with FINRA members. In accordance with that provision, FINRA 
has developed examinations that are designed to establish that persons 
associated with FINRA members have attained specified levels of 
competence and knowledge, consistent with applicable registration 
requirements under FINRA rules. FINRA periodically reviews the content 
of the examinations to determine whether revisions are necessary or 
appropriate in view of changes pertaining to the subject matter covered 
by the examinations.
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    \8\ 15 U.S.C. 78o-3(g)(3).
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    NASD Rule 1022(g) states that members may register with FINRA an 
individual as a General Securities Sales Supervisor if the individual's 
supervisory responsibilities in the investment banking and securities 
business are limited solely to the securities sales activities of a 
member, including the training of sales and sales supervisory personnel 
and the maintenance of records of original entry and ledger accounts of 
the member required to be maintained in branch offices by SEC 
recordkeeping rules.\9\ A General Securities Sales Supervisor is 
precluded from performing any of the following activities: (1) 
Functioning in a principal capacity with responsibility over any area 
of business activity not stated above; (2) supervision of the 
origination and structuring of underwritings; (3) supervision of market 
making commitments; (4) supervision of the custody of firm or customer 
funds or securities for purposes of SEA Rule 15c3-3; or (5) supervision 
of overall compliance with financial responsibility rules for broker-
dealers promulgated pursuant to the provisions of the Act. Further, a 
General Securities Sales Supervisor is not qualified to be included for 
purposes of the principal numerical requirements of NASD Rule 
1021(e)(1).
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    \9\ NASD Rule 1022(g) also includes additional requirements 
applicable to General Securities Sales Supervisors engaged in 
securities futures activities.
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    To register as a General Securities Sales Supervisor, an individual 
must be registered pursuant to the NASD Rule 1030 Series as a General 
Securities Representative. In addition, the individual must pass the 
Series 9/10 examination.
    In consultation with a committee of industry representatives, FINRA 
recently undertook a review of the Series 9/10 examination program. As 
a result of this review, FINRA is proposing to make revisions to the 
content outline to reflect changes to the laws, rules and regulations 
covered by the examination and to incorporate the functions and 
associated tasks currently performed by a General Securities Sales 
Supervisor. FINRA also is proposing to make changes to the format of 
the content outline.
Current Content Outline
    The current content outline is divided into six sections. The 
following are the six sections and the number of questions associated 
with each of the sections, denoted Section 1 through Section 6:
    1. Hiring, Qualifications, and Continuing Education, 9 questions;
    2. Supervision of Accounts and Sales Activities, 94 questions;
    3. Conduct of Associated Persons, 14 questions;
    4. Recordkeeping Requirements, 8 questions;
    5. Municipal Securities Regulation, 20 questions;
    6. Options Regulation, 55 questions.
    Each section also includes the applicable laws, rules and 
regulations associated with that section. The current content outline 
also includes a preface (addressing, among other things, the purpose, 
administration and scoring of the examination), sample questions and 
reference materials.
Proposed Revisions
    FINRA is proposing to divide the content outline into two parts 
with eight major job functions that are performed by a General 
Securities Sales Supervisor. The following are the two parts each with 
four major job functions, denoted as Parts 1 and 2 with Function 1 
through Function 4, respectively, with the associated number of 
questions:
Part 1
    Function 1: Supervise Associated Persons and Personnel Management 
Activities, 28 questions;
    Function 2: Supervise the Opening and Maintenance of Customer 
Accounts, 49 questions;
    Function 3: Supervise Sales Practices and General Trading 
Activities, 52 questions;
    Function 4: Supervise Communications with the Public, 16 questions.

[[Page 836]]

Part 2
    Function 1: Supervise the Opening and Maintenance of Customer 
Options Accounts, 18 questions;
    Function 2: Supervise Sales Practices and General Options Trading 
Activities, 19 questions;
    Function 3: Supervise Options Communications, 5 questions;
    Function 4: Supervise Associated Persons and Personnel Management 
Activities, 13 questions.
    FINRA is proposing to adjust the number of questions assigned to 
each major job function to ensure that the overall examination better 
reflects the key tasks performed by a General Securities Sales 
Supervisor. The questions on the revised Series 9/10 examination will 
place greater emphasis on key tasks such as supervision of registered 
persons, sales practices and compliance.
    Each function also includes specific tasks describing activities 
associated with performing that function. In Part 1, there are five 
tasks (1.1-1.5) associated with Function 1; four tasks (2.1-2.4) 
associated with Function 2; five tasks (3.1-3.5) associated with 
Function 3; and four tasks (4.1-4.4) associated with Function 4. In 
Part 2, there are three tasks (1.1-1.3) associated with Function 1; 
four tasks (2.1-2.4) associated with Function 2; three tasks (3.1-3.3) 
associated with Function 3; and one task (4.1) associated with Function 
4.\10\ By way of example, one such task (Task 4.2 in Part 1) is review 
retail communications and determine appropriate approval.\11\ Further, 
the content outline lists the knowledge required to perform each 
function and associated tasks (e.g., types of retail communications, 
required approvals).\12\ In addition, where applicable, the content 
outline lists the laws, rules and regulations a candidate is expected 
to know to perform each function and associated tasks. These include 
the applicable FINRA Rules (e.g., FINRA Rule 2210), MSRB Rules (e.g., 
MSRB Rule G-27(e)) and SEC rules (e.g., Rule 135a under the Securities 
Act of 1933).\13\ FINRA conducted a job analysis study of General 
Securities Sales Supervisors, which included the use of a survey, in 
developing each function and associated tasks and updating the required 
knowledge set forth in the revised content outline. The functions and 
associated tasks, which appear in the revised content outline for the 
first time, reflect the day-to-day activities of a General Securities 
Sales Supervisor.
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    \10\ See Exhibit 3a, Outline Pages 5-26.
    \11\ See Exhibit 3a, Outline Page 17.
    \12\ See Exhibit 3a, Outline Page 17.
    \13\ See Exhibit 3a, Outline Page 17-18.
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    As noted above, FINRA also is proposing to revise the content 
outline to reflect changes to the laws, rules and regulations covered 
by the examination. Among other revisions, FINRA is proposing to revise 
the content outline to reflect the adoption of rules in the 
consolidated FINRA rulebook (e.g., NASD Rule 2310 (Recommendations to 
Customers (Suitability)), NASD Rule 2212 (Telemarketing) and NASD Rule 
3110 (Books and Records) were adopted as FINRA Rule 2111 (Suitability), 
FINRA Rule 3230 (Telemarketing) and FINRA Rule 4510 Series (Books and 
Records Requirements), respectively).\14\
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    \14\ See Rule Conversion Chart, available at http://www.finra.org/Industry/Regulation/FINRARules/p085560.
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    FINRA is proposing similar changes to the Series 9/10 selection 
specifications and question bank.
    Finally, FINRA is proposing to make changes to the format of the 
content outline, including the preface, sample questions and reference 
materials. Among other changes, FINRA is proposing to: (1) Add a table 
of contents; \15\ (2) provide more details regarding the purpose of the 
examination; \16\ (3) provide more details on the application 
procedures; \17\ (4) provide more details on the development and 
maintenance of the content outline and examination; \18\ (5) explain 
that the passing scores are established by FINRA staff, in consultation 
with a committee of industry representatives, using a standard setting 
procedure, and that a statistical adjustment process known as equating 
is used in scoring exams; \19\ and (6) note that each candidate will 
receive a report at the end of the test session, which will indicate a 
pass or fail status and include a score profile listing the candidate's 
performance on each major content area covered on the examination.\20\
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    \15\ See Exhibit 3a, Outline Page 1.
    \16\ See Exhibit 3a, Outline Page 2.
    \17\ See Exhibit 3a, Outline Page 2.
    \18\ See Exhibit 3a, Outline Page 3.
    \19\ See Exhibit 3a, Outline Page 4.
    \20\ See Exhibit 3a, Outline Page 4.
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    The number of questions on the Series 9/10 examination will remain 
at 200 multiple-choice questions (55 on the Series 9 and 145 on the 
Series 10).\21\ Candidates will have 90 minutes to complete the Series 
9 exam and 240 minutes to complete the Series 10 exam. The passing 
score for the Series 9 is 70 percent and the passing score for the 
Series 10 is 70 percent. These are unchanged.
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    \21\ Consistent with FINRA's practice of including ``pretest'' 
items on certain qualification examinations, which is designed to 
ensure that new examination items meet acceptable testing standards 
prior to use for scoring purposes, the examinations include 15 
additional, unidentified pretest items that do not contribute 
towards the candidate's score. Therefore, the examination actually 
consists of 215 items, 200 of which are scored. The 15 pretest items 
are randomly distributed throughout the examination.
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Availability of Content Outline
    The current Series 9/10 content outline is available on FINRA's Web 
site, at www.finra.org/brokerqualifications/exams. The revised Series 
9/10 content outline will replace the current content outline on 
FINRA's Web site.
    FINRA is filing the proposed rule change for immediate 
effectiveness. FINRA proposes to implement the revised Series 9/10 
examination program on March 7, 2016. FINRA will announce the proposed 
rule change and the implementation date in a Regulatory Notice.
2. Statutory Basis
    FINRA believes that the proposed revisions to the Series 9/10 
examination program are consistent with the provisions of Section 
15A(b)(6) of the Act,\22\ 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, and 
Section 15A(g)(3) of the Act,\23\ which authorizes FINRA to prescribe 
standards of training, experience, and competence for persons 
associated with FINRA members. FINRA believes that the proposed 
revisions will further these purposes by updating the examination 
program to reflect changes to the laws, rules and regulations covered 
by the examination and to incorporate the functions and associated 
tasks currently performed by a General Securities Sales Supervisor.
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    \22\ 15 U.S.C. 78o-3(b)(6).
    \23\ 15 U.S.C. 78o-3(g)(3).
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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. The updated examination aligns 
with the functions and associated tasks currently performed by a 
General Securities Sales Supervisor and tests knowledge of the most 
current laws, rules, regulations and skills relevant to those functions

[[Page 837]]

and associated tasks. As such, the proposed revisions would make the 
examination more efficient and effective.

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 \24\ and paragraph (f)(1) of Rule 19b-4 
thereunder.\25\ 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.
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    \24\ 15 U.S.C. 78s(b)(3)(A).
    \25\ 17 CFR 240.19b-4(f)(1).
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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 email to [email protected]. Please include 
File Number SR-FINRA-2015-058 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-2015-058. 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 offices 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-2015-058, and should 
be submitted on or before January 28, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-33311 Filed 1-6-16; 8:45 am]
 BILLING CODE 8011-01-P
834 Federal Register / Vol. 81, No. 4 / Thursday, January 7, 2016 / Notices

Electronic Comments SECURITIES AND EXCHANGE An agency may not conduct or
COMMISSION sponsor, and a person is not required to
• Use the Commission’s Internet respond to, a collection of information
comment form (http://www.sec.gov/ under the PRA unless it displays a
[SEC File No. 270–363, OMB Control No.
rules/sro.shtml); or 3235–0413] currently valid OMB control number.
• Send an email to rule-comments@ The public may view background
sec.gov. Please include File Number SR– Submission for OMB Review; documentation for this information
BX–2015–085 on the subject line. Comment Request collection at the following Web site:
www.reginfo.gov. Comments should be
Paper Comments Upon Written Request, Copies Available directed to: (i) Desk Officer for the
From: Securities and Exchange Securities and Exchange Commission,
• Send paper comments in triplicate Commission, Office of FOIA Services, Office of Information and Regulatory
to Secretary, Securities and Exchange 100 F Street NE., Washington, DC Affairs, Office of Management and
Commission, 100 F Street NE., 20549–2736. Budget, Room 10102, New Executive
Washington, DC 20549–1090. Extension: Office Building, Washington, DC 20503,
All submissions should refer to File Rule 17Ad–16. or by sending an email to: Shagufta_
Number SR–BX–2015–085. This file Notice is hereby given that pursuant Ahmed@omb.eop.gov; and (ii) Pamela
number should be included on the to the Paperwork Reduction Act of 1995 Dyson, Director/Chief Information
subject line if email is used. To help the Officer, Securities and Exchange
(44 U.S.C. 3501 et seq.) (‘PRA’’), the
Commission process and review your Commission, c/o Remi Pavlik-Simon,
Securities and Exchange Commission
comments more efficiently, please use 100 F Street NE., Washington, DC
(‘‘Commission’’) has submitted to the
20549, or by sending an email to: PRA_
only one method. The Commission will Office of Management and Budget
Mailbox@sec.gov. Comments must be
post all comments on the Commission’s (‘‘OMB’’) a request for approval of
submitted to OMB within 30 days of
Internet Web site (http://www.sec.gov/ extension of the existing collection of
this notice.
rules/sro.shtml). Copies of the information provided for in Rule 17Ad–
submission, all subsequent 16 (17 CFR 240.17Ad–16) under the Dated: December 30, 2015.
amendments, all written statements Securities Exchange Act of 1934 (15 Jill M. Peterson,
with respect to the proposed rule U.S.C. 78a et seq.). Assistant Secretary.
change that are filed with the Rule 17Ad–16 requires a registered [FR Doc. 2015–33215 Filed 1–6–16; 8:45 am]
Commission, and all written transfer agent to provide written notice BILLING CODE 8011–01–P

communications relating to the to the appropriate qualified registered
proposed rule change between the securities depository when assuming or
terminating transfer agent services on SECURITIES AND EXCHANGE
Commission and any person, other than
behalf of an issuer or when changing its COMMISSION
those that may be withheld from the
name or address. In addition, transfer [Release No. 34–76812; File No. SR–FINRA–
public in accordance with the
agents that provide such notice shall 2015–058]
provisions of 5 U.S.C. 552, will be maintain such notice for a period of at
available for Web site viewing and least two years in an easily accessible Self-Regulatory Organizations;
printing in the Commission’s Public place. This rule addresses the problem Financial Industry Regulatory
Reference Room, 100 F Street NE., of certificate transfer delays caused by Authority, Inc.; Notice of Filing and
Washington, DC 20549 on official transfer requests that are directed to the Immediate Effectiveness of a Proposed
business days between the hours of wrong transfer agent or the wrong Rule Change Relating to the Series
10:00 a.m. and 3:00 p.m. Copies of such address. 9/10 Examination Program
filing also will be available for We estimate that the transfer agent
inspection and copying at the principal December 31, 2015.
industry submits approximately 6,970
offices of the Exchange. All comments Rule 17Ad–16 notices to appropriate Pursuant to Section 19(b)(1) of the
received will be posted without change; qualified registered securities Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘SEA’’) 1 and Rule 19b–4
the Commission does not edit personal depositories. The staff estimates that the
thereunder,2 notice is hereby given that
identifying information from average amount of time necessary to
on December 23, 2015, Financial
submissions. You should submit only create and submit each notice is
Industry Regulatory Authority, Inc.
information that you wish to make approximately 15 minutes per notice.
(‘‘FINRA’’) filed with the Securities and
available publicly. All submissions Accordingly, the estimated total
Exchange Commission (‘‘SEC’’ or
should refer to File Number SR–BX– industry burden is 1,743 hours per year
‘‘Commission’’) the proposed rule
2015–085, and should be submitted on (15 minutes multiplied by 6,970 filed
change as described in Items I, II, and
or before January 28, 2016. annually).
III below, which Items have been
Because the information needed by
For the Commission, by the Division of prepared by FINRA. FINRA has
transfer agents to properly notify the designated the proposed rule change as
Trading and Markets, pursuant to delegated appropriate registered securities
authority.20 ‘‘constituting a stated policy, practice,
depository is readily available to them or interpretation with respect to the
Jill M. Peterson, and the report is simple and meaning, administration, or
Assistant Secretary. straightforward, the cost is relatively enforcement of an existing rule’’ under
rmajette on DSK2TPTVN1PROD with NOTICES

[FR Doc. 2015–33307 Filed 1–6–16; 8:45 am] minimal. The average internal Section 19(b)(3)(A)(i) of the Act 3 and
BILLING CODE 8011–01–P compliance cost to prepare and send a Rule 19b–4(f)(1) thereunder,4 which
notice is approximately $7.50 (15
minutes at $30 per hour). This yields an 1 15 U.S.C. 78s(b)(1).
industry-wide internal compliance cost 2 17 CFR 240.19b–4.
estimate of $52,275 (6,970 notices 3 15 U.S.C. 78s(b)(3)(A)(i).
20 17 CFR 200.30–3(a)(12). multiplied by $7.50 per notice). 4 17 CFR 240.19b–4(f)(1).

VerDate Sep<11>2014 14:27 Jan 06, 2016 Jkt 238001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\07JAN1.SGM 07JAN1
Federal Register / Vol. 81, No. 4 / Thursday, January 7, 2016 / Notices 835

renders the proposal effective upon A. Self-Regulatory Organization’s individual must pass the Series 9/10
receipt of this filing by the Commission Statement of the Purpose of, and examination.
The Commission is publishing this Statutory Basis for, the Proposed Rule In consultation with a committee of
notice to solicit comments on the Change industry representatives, FINRA
proposed rule change from interested recently undertook a review of the
1. Purpose
persons. Series 9/10 examination program. As a
Section 15A(g)(3) of the Act 8 result of this review, FINRA is
I. Self-Regulatory Organization’s
authorizes FINRA to prescribe standards proposing to make revisions to the
Statement of the Terms of the Substance
of training, experience, and competence content outline to reflect changes to the
of the Proposed Rule Change
for persons associated with FINRA laws, rules and regulations covered by
FINRA is filing revisions to the members. In accordance with that the examination and to incorporate the
content outline and selection provision, FINRA has developed functions and associated tasks currently
specifications for the General Securities examinations that are designed to performed by a General Securities Sales
Sales Supervisor (Series 9/10) establish that persons associated with Supervisor. FINRA also is proposing to
examination program.5 The proposed FINRA members have attained specified make changes to the format of the
revisions update the material to reflect levels of competence and knowledge, content outline.
changes to the laws, rules and consistent with applicable registration
regulations covered by the examination Current Content Outline
requirements under FINRA rules.
and to incorporate the functions and FINRA periodically reviews the content The current content outline is divided
associated tasks currently performed by of the examinations to determine into six sections. The following are the
a General Securities Sales Supervisor. In whether revisions are necessary or six sections and the number of
addition, FINRA is proposing to make appropriate in view of changes questions associated with each of the
changes to the format of the content pertaining to the subject matter covered sections, denoted Section 1 through
outline. FINRA is not proposing any by the examinations. Section 6:
textual changes to the By-Laws, NASD Rule 1022(g) states that 1. Hiring, Qualifications, and
Schedules to the By-Laws or Rules of members may register with FINRA an Continuing Education, 9 questions;
FINRA. individual as a General Securities Sales 2. Supervision of Accounts and Sales
The revised content outline is Supervisor if the individual’s Activities, 94 questions;
attached.6 The Series 9/10 selection supervisory responsibilities in the 3. Conduct of Associated Persons, 14
specifications have been submitted to investment banking and securities questions;
the Commission under separate cover business are limited solely to the 4. Recordkeeping Requirements, 8
with a request for confidential treatment securities sales activities of a member, questions;
pursuant to SEA Rule 24b–2.7 including the training of sales and sales 5. Municipal Securities Regulation, 20
The text of [sic] the proposed rule supervisory personnel and the questions;
change is available on FINRA’s Web site maintenance of records of original entry 6. Options Regulation, 55 questions.
at http://www.finra.org, at the principal and ledger accounts of the member Each section also includes the
office of FINRA and at the required to be maintained in branch applicable laws, rules and regulations
Commission’s Public Reference Room. offices by SEC recordkeeping rules.9 A associated with that section. The current
II. Self-Regulatory Organization’s General Securities Sales Supervisor is content outline also includes a preface
Statement of the Purpose of, and precluded from performing any of the (addressing, among other things, the
Statutory Basis for, the Proposed Rule following activities: (1) Functioning in a purpose, administration and scoring of
Change principal capacity with responsibility the examination), sample questions and
over any area of business activity not reference materials.
In its filing with the Commission,
stated above; (2) supervision of the Proposed Revisions
FINRA included statements concerning
origination and structuring of
the purpose of and basis for the FINRA is proposing to divide the
underwritings; (3) supervision of market
proposed rule change and discussed any content outline into two parts with eight
making commitments; (4) supervision of
comments it received on the proposed major job functions that are performed
the custody of firm or customer funds or
rule change. The text of these statements by a General Securities Sales
securities for purposes of SEA Rule
may be examined at the places specified Supervisor. The following are the two
15c3–3; or (5) supervision of overall
in Item IV below. FINRA has prepared parts each with four major job functions,
compliance with financial responsibility
summaries, set forth in sections A, B, denoted as Parts 1 and 2 with Function
rules for broker-dealers promulgated
and C below, of the most significant 1 through Function 4, respectively, with
pursuant to the provisions of the Act.
aspects of such statements. the associated number of questions:
Further, a General Securities Sales
5 FINRA also is proposing corresponding
Supervisor is not qualified to be Part 1
revisions to the Series 9/10 question bank. Based on
included for purposes of the principal
numerical requirements of NASD Rule Function 1: Supervise Associated
instruction from SEC staff, FINRA is submitting this
filing for immediate effectiveness pursuant to 1021(e)(1). Persons and Personnel Management
Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(1) Activities, 28 questions;
To register as a General Securities
thereunder, and is not filing the question bank for Function 2: Supervise the Opening
review. See Letter to Alden S. Adkins, Senior Vice Sales Supervisor, an individual must be
and Maintenance of Customer Accounts,
registered pursuant to the NASD Rule
rmajette on DSK2TPTVN1PROD with NOTICES

President and General Counsel, NASD Regulation,
from Belinda Blaine, Associate Director, Division of 49 questions;
1030 Series as a General Securities
Market Regulation, SEC, dated July 24, 2000. The
Representative. In addition, the Function 3: Supervise Sales Practices
question bank is available for SEC review. and General Trading Activities, 52
6 The Commission notes that the revised content
questions;
outline is attached to the proposed rule change, and 8 15U.S.C. 78o–3(g)(3).
is available for viewing on FINRA’s Web site. The 9 NASD Rule 1022(g) also includes additional
Function 4: Supervise
content outline is not attached to this notice. requirements applicable to General Securities Sales Communications with the Public, 16
7 17 CFR 240.24b–2. Supervisors engaged in securities futures activities. questions.

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Federal Register / Vol. 81, No. 4 / Thursday, January 7, 2016 / Notices 837

and associated tasks. As such, the amendments, all written statements (‘‘Commission’’) has submitted to the
proposed revisions would make the with respect to the proposed rule Office of Management and Budget
examination more efficient and change that are filed with the (‘‘OMB’’) a request for approval of a
effective. Commission, and all written reinstatement, with change, of a
communications relating to the previously approved collection for
C. Self-Regulatory Organization’s
proposed rule change between the which approval has expired—Rule 19h–
Statement on Comments on the
Commission and any person, other than 1, Notice by a Self-Regulatory
Proposed Rule Change Received From
those that may be withheld from the Organization of Proposed Admission to
Members, Participants, or Others
public in accordance with the or Continuance in Membership or
Written comments were neither provisions of 5 U.S.C. 552, will be Participation or Association with a
solicited nor received. available for Web site viewing and Member of Any Person Subject to a
III. Date of Effectiveness of the printing in the Commission’s Public Statutory Disqualification, and
Proposed Rule Change and Timing for Reference Room, 100 F Street NE., Applications to the Commission for
Commission Action Washington, DC 20549 on official Relief Therefrom (17 CFR 240.19h–1).
business days between the hours of Rule 19h–1 (‘‘Rule’’) under the
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of such
effective pursuant to Section 19(b)(3)(A) Securities Exchange Act of 1934 (the
filing also will be available for ‘‘Exchange Act’’) prescribes the form
of the Act 24 and paragraph (f)(1) of Rule inspection and copying at the principal
19b–4 thereunder.25 At any time within and content of notices and applications
offices of FINRA. All comments by self-regulatory organizations
60 days of the filing of the proposed rule received will be posted without change;
change, the Commission summarily may (‘‘SROs’’) regarding proposed
the Commission does not edit personal admissions to, or continuances in,
temporarily suspend such rule change if identifying information from
it appears to the Commission that such membership, participation or
submissions. You should submit only association with a member of any
action is necessary or appropriate in the information that you wish to make
public interest, for the protection of person subject to a statutory
available publicly. All submissions disqualification.
investors, or otherwise in furtherance of should refer to File Number SR–FINRA–
the purposes of the Act. If the 2015–058, and should be submitted on The Commission uses the information
Commission takes such action, the or before January 28, 2016. provided in the submissions filed
Commission shall institute proceedings pursuant to Rule 19h–1 to review
to determine whether the proposed rule For the Commission, by the Division of decisions of SROs to permit the entry
Trading and Markets, pursuant to delegated
should be approved or disapproved. authority.26
into or continuance in the securities
business of persons who have
IV. Solicitation of Comments Jill M. Peterson,
committed serious misconduct. The
Interested persons are invited to Assistant Secretary.
filings submitted pursuant to the Rule
submit written data, views, and [FR Doc. 2015–33311 Filed 1–6–16; 8:45 am] also permit inclusion of an application
arguments concerning the foregoing, BILLING CODE 8011–01–P to the Commission for consent to
including whether the proposed rule associate with a member of an SRO
change is consistent with the Act. notwithstanding a Commission order
Comments may be submitted by any of SECURITIES AND EXCHANGE barring such association.
the following methods: COMMISSION
The Commission reviews filings made
Electronic Comments [SEC File No. 270–247; OMB Control No. pursuant to the Rule to ascertain
3235–0259]
• Use the Commission’s Internet whether it is in the public interest to
comment form (http://www.sec.gov/ Submission for OMB Review; permit the employment in the securities
rules/sro.shtml); or Comment Request business of persons subject to a
• Send an email to rule-comments@ statutory disqualification. The filings
sec.gov. Please include File Number SR– Upon Written Request Copies Available contain information that is essential to
FINRA–2015–058 on the subject line. From: U.S. Securities and Exchange the staff’s review and ultimate
Commission, Office of FOIA Services, determination on whether an
Paper Comments 100 F Street NE., Washington, DC association or employment is in the
• Send paper comments in triplicate 20549–2736. public interest and consistent with
to Secretary, Securities and Exchange Reinstatement: investor protection. Without these
Commission, 100 F Street NE., Rule 19h–1 filings, persons subject to a statutory
Washington, DC 20549–1090. Notice by a Self-Regulatory disqualification could reenter or
All submissions should refer to File Organization of Proposed Admission to continue employment in the securities
Number SR–FINRA–2015–058. This file or Continuance in Membership or business without the Commission’s
number should be included on the Participation or Association with a critical review of their character, ability
subject line if email is used. To help the Member of Any Person Subject to a to act as a fiduciary, and their
Commission process and review your Statutory Disqualification, and employer’s plan of supervision. The
comments more efficiently, please use Applications to the Commission for failure to collect and review this
only one method. The Commission will Relief Therefrom. information could result in significant
post all comments on the Commission’s Notice is hereby given that, pursuant harm to the investing public.
rmajette on DSK2TPTVN1PROD with NOTICES

Internet Web site (http://www.sec.gov/ to the Paperwork Reduction Act of 1995 The Commission estimates the annual
rules/sro.shtml). Copies of the (44 U.S.C. 3501 et seq.), the Securities burden of responding to this collection
submission, all subsequent and Exchange Commission of information is as follows.

24 15 U.S.C. 78s(b)(3)(A). 25 17 CFR 240.19b–4(f)(1). 26 17 CFR 200.30–3(a)(12).

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Document Created: 2016-01-07 00:12:48
Document Modified: 2016-01-07 00:12:48
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 834