83 FR 8524 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Revise the General Securities Representative (Series 7) Examination
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 39 (February 27, 2018)
Federal Register Volume 83, Issue 39 (February 27, 2018)
| Page Range | 8524-8526 | |
| FR Document | 2018-03886 |
[Federal Register Volume 83, Number 39 (Tuesday, February 27, 2018)] [Notices] [Pages 8524-8526] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-03886] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82747; File No. SR-FINRA-2018-008] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Revise the General Securities Representative (Series 7) Examination February 21, 2018. 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 February 12, 2018, 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 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)(i). \4\ 17 CFR 240.19b-4(f)(1). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing revisions to the content outline and selection specifications for the General Securities Representative (Series 7) examination as part of the restructuring of the representative-level examination program.\5\ The proposed revisions also update the material to reflect changes to the laws, rules and regulations covered by the examination. 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. --------------------------------------------------------------------------- \5\ FINRA also is proposing corresponding revisions to the Series 7 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. 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. --------------------------------------------------------------------------- The revised Series 7 content outline is attached.\6\ The revised Series 7 selection specifications have been submitted to the Commission under separate cover with a request for confidential treatment pursuant to SEA Rule 24b-2.\7\ --------------------------------------------------------------------------- \6\ The Commission notes that the content outline is attached to the filing, not to this Notice. \7\ 17 CFR 240.24b-2. --------------------------------------------------------------------------- The text of the proposed rule change is available on FINRA's website at http://www.finra.org, at the principal office of FINRA and at the Commission's Public Reference Room. [sic] 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 the 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78o-3(g)(3). --------------------------------------------------------------------------- The SEC recently approved a proposed rule change to restructure the FINRA representative-level qualification examination program.\9\ The rule change, which will become effective on October 1, 2018,\10\ restructures the examination program into a new format whereby all new representative-level applicants will be required to take a general knowledge examination (the Securities Industry Essentials or SIETM) and a tailored, specialized knowledge examination (a revised representative-level qualification examination) for their particular registered role. --------------------------------------------------------------------------- \9\ See Securities Exchange Act Release No. 81098 (July 7, 2017), 82 FR 32419 (July 13, 2017) (Order Approving File No. SR- FINRA-2017-007). \10\ See Regulatory Notice 17-30 (SEC Approves Consolidated FINRA Registration Rules, Restructured Representative-Level Qualification Examinations and Changes to Continuing Education Requirements) (October 2017). --------------------------------------------------------------------------- The restructured program eliminates duplicative testing of general securities knowledge on the current representative-level qualification examinations by moving such content into the SIE examination.\11\ The SIE examination will test fundamental securities-related knowledge, including knowledge of basic products, the structure and function of the securities industry, the regulatory agencies and their functions and regulated and prohibited practices, whereas the revised representative-level qualification examinations will test knowledge relevant to day-to-day activities, responsibilities and job functions of representatives.\12\ --------------------------------------------------------------------------- \11\ Each of the current representative-level examinations covers general securities knowledge, with the exception of the Research Analyst (Series 86 and 87) examinations. \12\ FINRA filed the SIE content outline with the SEC for immediate effectiveness. See Securities Exchange Act Release No. 82578 (January 24, 2018), 83 FR 4375 (January 30, 2018) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2018-002). In addition to the proposed rule change relating to the revised Series 7 examination, FINRA is filing with the Commission for immediate effectiveness the content outlines for the other revised representative-level qualification examinations. --------------------------------------------------------------------------- As part of the restructuring process and in consultation with a committee of industry representatives, FINRA undertook a review of the General Securities Representative (Series 7) examination to remove the general securities knowledge currently covered on the examination and to create a tailored examination to test knowledge relevant to the day- to-day activities, responsibilities and job functions of a General Securities Representative. As a result of this review, FINRA also is [[Page 8525]] proposing to revise the Series 7 content outline to reflect changes to the laws, rules and regulations covered by the examination. In addition, FINRA is proposing to make changes to the format of the Series 7 content outline. Beginning on October 1, 2018, new applicants seeking to register as General Securities Representatives must pass the SIE examination and the revised General Securities Representative (Series 7) examination. Current Content Outline The current Series 7 content outline is divided into five major job functions that are performed by a General Securities Representative. The following are the five major job functions, denoted F1 through F5, with the associated number of questions: F1: Seeks Business for the Broker-Dealer Through Customers and Potential Customers, 68 questions; F2: Evaluates Customers' Other Security Holdings, Financial Situation and Needs, Financial Status, Tax Status, and Investment Objectives, 27 questions; F3: Opens Accounts, Transfers Assets, and Maintains Appropriate Account Records, 27 questions; F4: Provides Customers With Information on Investments and Makes Suitable Recommendations, 70 questions; and F5: Obtains and Verifies Customer's Purchase and Sales Instructions, Enters Orders, and Follows Up, 58 questions. Each function also includes specific tasks describing activities associated with performing that function. Further, the content outline includes a knowledge section describing the underlying knowledge required to perform the major job functions and associated tasks and a rule section listing the laws, rules and regulations related to the job functions, associated tasks and knowledge statements. There are cross- references within each section to the other applicable sections. The current content outline also includes a preface (e.g., table of contents, details regarding the purpose of the examination and eligibility requirements), sample questions and reference materials. Revised Content Outline As noted above, FINRA is proposing to move the general securities knowledge currently covered on the Series 7 examination to the SIE examination. For example, FINRA Rule 3220 (Influencing or Rewarding Employees of Others) (the Gifts Rule) will now be tested on the SIE examination, rather than on the Series 7 examination. As a result, the revised Series 7 examination will test knowledge specific to the day- to-day activities, responsibilities and job functions of a General Securities Representative. Further, FINRA is proposing to make changes to the major job functions that are performed by a General Securities Representative. The proposed change aligns the major job functions performed by a General Securities Representative with the major job functions performed by other sales representatives, including Investment Company and Variable Contracts Products Representatives, Direct Participation Programs Representatives and Private Securities Offerings Representatives. The following are the revised job functions, denoted Function 1 through Function 4, with the associated number of questions: Function 1: Seeks Business for the Broker-Dealer From Customers and Potential Customers, 9 questions; Function 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives, 11 questions; Function 3: Provides Customers With Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records, 91 questions; and Function 4: Obtains and Verifies Customers' Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions, 14 questions. FINRA also 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 Representative. The questions on the revised Series 7 examination will place emphasis on tasks such as seeking business for the broker-dealer from customers and potential customers, opening customer accounts, providing customers with suitable recommendations and verifying customer agreements and transactions. Further, FINRA is proposing to make changes to the specific tasks associated with performing each function. There are two tasks (1.1-1.2) associated with Function 1; \13\ four tasks (2.1-2.4) associated with Function 2; \14\ four tasks (3.1-3.4) associated with Function 3; \15\ and four tasks (4.1--4.4) associated with Function 4.\16\ For example, one such task (Task 1.1) is contacting current and potential customers in person and by telephone, mail and electronic means, developing promotional and advertising materials and seeking appropriate approvals to distribute marketing materials.\17\ The content outline also lists the knowledge required to perform each revised function and associated tasks (e.g., standards and required approvals of communications). In addition, where applicable, the content outline lists the laws, rules and regulations a candidate is expected to know to perform each revised function and associated tasks (e.g., FINRA Rule 2111 (Suitability)). --------------------------------------------------------------------------- \13\ See Exhibit 3a, Outline Pages 3-5. The outline is attached as Exhibit 3a to the 19b-4 form. \14\ See Exhibit 3a, Outline Pages 6-8. \15\ See Exhibit 3a, Outline Pages 9-16. \16\ See Exhibit 3a, Outline Pages 17-20. \17\ See Exhibit 3a, Outline Page 3. --------------------------------------------------------------------------- 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 new FINRA rules (e.g., FINRA Rule 2273 (Educational Communication Related to Recruitment Practices and Account Transfers)). FINRA is proposing similar changes to the Series 7 selection specifications and question bank. Finally, FINRA is proposing to make changes to the format of the content outline, including to the preface, sample questions and reference materials.\18\ Among other changes, FINRA is proposing to: (1) Reduce the preface to one page of introductory information; (2) streamline details regarding the purpose of the examination; (3) move the application procedures to FINRA's website; and (4) explain that the passing score is established using a standard setting procedure, and that a statistical adjustment process known as equating is used in scoring the examination.\19\ --------------------------------------------------------------------------- \18\ FINRA is proposing similar changes to the content outlines for other representative-level examinations. \19\ See Exhibit 3a, Outline Page 2. --------------------------------------------------------------------------- As a result of the proposed changes, the number of scored questions on the Series 7 examination will be reduced from 250 questions to 125 questions.\20\ Further, the test time, which is the amount of time candidates will have to complete the examination, will be reduced from six hours to three hours and 45 minutes. Currently, a score of 72 percent is required to pass the examination. FINRA will publish the [[Page 8526]] passing score of the revised Series 7 examination on its website, at www.finra.org, prior to its first administration. --------------------------------------------------------------------------- \20\ Consistent with FINRA's practice of including ``pretest'' questions on examinations, the Series 7 examination includes 10 additional, unidentified pretest questions that do not contribute towards the candidate's score. The pretest questions are designed to ensure that new examination questions meet acceptable testing standards prior to use for scoring purposes. Therefore, the Series 7 examination actually consists of 135 questions, 125 of which are scored. The 10 pretest questions are randomly distributed throughout the examination. --------------------------------------------------------------------------- Availability of Content Outline The current Series 7 content outline is available on FINRA's website. The revised Series 7 content outline will replace the current content outline on FINRA's website, and it will be made available on the website on the date of this filing. FINRA is filing the proposed rule change for immediate effectiveness. The implementation date will be October 1, 2018, to coincide with the implementation of the restructured representative- level examination program. FINRA will also announce the implementation date of the proposed rule change in a Regulatory Notice. 2. Statutory Basis FINRA believes that the proposed revisions to the Series 7 examination program are consistent with the provisions of Section 15A(b)(6) of the Act,\21\ 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,\22\ which authorizes FINRA to prescribe standards of training, experience, and competence for persons associated with FINRA members. The proposed rule change will improve the examination program, without compromising the qualification standards, by removing the general knowledge content currently covered on the Series 7 examination, since that content will be covered in the co-requisite SIE examination. In addition, the proposed revisions will further the purposes of the Act by updating the examination program to reflect changes to the laws, rules and regulations covered by the examination. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78o-3(b)(6). \22\ 15 U.S.C. 78o-3(g)(3). --------------------------------------------------------------------------- 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 Representative and tests knowledge of the most current laws, rules, regulations and skills relevant to those functions and associated tasks. As such, the proposed revisions would make the examination more effective. FINRA also provided a detailed economic impact assessment regarding the introduction of the SIE examination and the restructuring of the representative-level examinations as part of the proposed rule change to restructure the FINRA representative-level qualification examination program.\23\ --------------------------------------------------------------------------- \23\ See Securities Exchange Act Release No. 80371 (April 4, 2017), 82 FR 17336 (April 10, 2017) (Notice of Filing of File No. SR-FINRA-2017-007). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \24\ 15 U.S.C. 78s(b)(3)(A). \25\ 17 CFR 240.19b-4(f)(1). --------------------------------------------------------------------------- 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-2018-008 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-2018-008. 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 website (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 website 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 the filing also will be available for inspection and copying at the principal office of FINRA. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-FINRA-2018-008, and should be submitted on or before March 20, 2018. --------------------------------------------------------------------------- \26\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\26\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-03886 Filed 2-26-18; 8:45 am] BILLING CODE 8011-01-P
![8524 Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Notices
CONTACT PERSON FOR INFORMATION: update the material to reflect changes to appropriate in view of changes
Information on the hearing cancellation the laws, rules and regulations covered pertaining to the subject matter covered
may be obtained from Catherine F.I. by the examination. In addition, FINRA by the examinations.
Andrade at (202) 336–8768, or via email is proposing to make changes to the The SEC recently approved a
at Catherine.Andrade@opic.gov. format of the content outline. FINRA is proposed rule change to restructure the
Dated: February 22, 2018. not proposing any textual changes to the FINRA representative-level qualification
By-Laws, Schedules to the By-Laws or examination program.9 The rule change,
Catherine F.I. Andrade,
Rules of FINRA. which will become effective on October
OPIC Corporate Secretary.
The revised Series 7 content outline is 1, 2018,10 restructures the examination
[FR Doc. 2018–04038 Filed 2–23–18; 11:15 am] program into a new format whereby all
attached.6 The revised Series 7 selection
BILLING CODE 3210–01–P new representative-level applicants will
specifications have been submitted to
the Commission under separate cover be required to take a general knowledge
with a request for confidential treatment examination (the Securities Industry
SECURITIES AND EXCHANGE pursuant to SEA Rule 24b–2.7 Essentials or SIETM) and a tailored,
COMMISSION The text of the proposed rule change specialized knowledge examination (a
[Release No. 34–82747; File No. SR–FINRA– is available on FINRA’s website at revised representative-level
2018–008] http://www.finra.org, at the principal qualification examination) for their
office of FINRA and at the particular registered role.
Self-Regulatory Organizations; Commission’s Public Reference Room. The restructured program eliminates
Financial Industry Regulatory [sic] duplicative testing of general securities
Authority, Inc.; Notice of Filing and knowledge on the current
Immediate Effectiveness of a Proposed II. Self-Regulatory Organization’s representative-level qualification
Rule Change To Revise the General Statement of the Purpose of, and examinations by moving such content
Securities Representative (Series 7) Statutory Basis for, the Proposed Rule into the SIE examination.11 The SIE
Examination Change examination will test fundamental
In its filing with the Commission, securities-related knowledge, including
February 21, 2018. knowledge of basic products, the
FINRA included statements concerning
Pursuant to Section 19(b)(1) of the structure and function of the securities
the purpose of and basis for the
Securities Exchange Act of 1934 industry, the regulatory agencies and
proposed rule change and discussed any
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 their functions and regulated and
comments it received on the proposed
notice is hereby given that on February prohibited practices, whereas the
rule change. The text of these statements
12, 2018, Financial Industry Regulatory revised representative-level
may be examined at the places specified
Authority, Inc. (‘‘FINRA’’) filed with the qualification examinations will test
in Item IV below. FINRA has prepared
Securities and Exchange Commission knowledge relevant to day-to-day
summaries, set forth in sections A, B,
(‘‘SEC’’ or ‘‘Commission’’) the proposed activities, responsibilities and job
and C below, of the most significant
rule change as described in Items I, II, functions of representatives.12
aspects of such statements.
and III below, which Items have been As part of the restructuring process
prepared by FINRA. FINRA has A. Self-Regulatory Organization’s and in consultation with a committee of
designated the proposed rule change as Statement of the Purpose of, and the industry representatives, FINRA
‘‘constituting a stated policy, practice, Statutory Basis for, the Proposed Rule undertook a review of the General
or interpretation with respect to the Change Securities Representative (Series 7)
meaning, administration, or examination to remove the general
1. Purpose
enforcement of an existing rule’’ under securities knowledge currently covered
Section 19(b)(3)(A)(i) of the Act 3 and Section 15A(g)(3) of the Act 8 on the examination and to create a
Rule 19b–4(f)(1) thereunder,4 which authorizes FINRA to prescribe standards tailored examination to test knowledge
renders the proposal effective upon of training, experience, and competence relevant to the day-to-day activities,
receipt of this filing by the Commission. for persons associated with FINRA responsibilities and job functions of a
The Commission is publishing this members. In accordance with that General Securities Representative. As a
notice to solicit comments on the provision, FINRA has developed result of this review, FINRA also is
proposed rule change from interested examinations that are designed to
persons. establish that persons associated with 9 See Securities Exchange Act Release No. 81098
FINRA members have attained specified (July 7, 2017), 82 FR 32419 (July 13, 2017) (Order
I. Self-Regulatory Organization’s levels of competence and knowledge, Approving File No. SR–FINRA–2017–007).
Statement of the Terms of Substance of consistent with applicable registration
10 See Regulatory Notice 17–30 (SEC Approves
the Proposed Rule Change Consolidated FINRA Registration Rules,
requirements under FINRA rules. Restructured Representative-Level Qualification
FINRA is proposing revisions to the FINRA periodically reviews the content Examinations and Changes to Continuing Education
content outline and selection of the examinations to determine Requirements) (October 2017).
11 Each of the current representative-level
specifications for the General Securities whether revisions are necessary or
examinations covers general securities knowledge,
Representative (Series 7) examination as with the exception of the Research Analyst (Series
part of the restructuring of the filing for immediate effectiveness pursuant to 86 and 87) examinations.
representative-level examination Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(1) 12 FINRA filed the SIE content outline with the
thereunder, and is not filing the question bank. See
program.5 The proposed revisions also Letter to Alden S. Adkins, Senior Vice President
SEC for immediate effectiveness. See Securities
daltland on DSKBBV9HB2PROD with NOTICES
Exchange Act Release No. 82578 (January 24, 2018),
and General Counsel, NASD Regulation, from 83 FR 4375 (January 30, 2018) (Notice of Filing and
1 15 U.S.C. 78s(b)(1). Belinda Blaine, Associate Director, Division of Immediate Effectiveness of File No. SR–FINRA–
2 17 CFR 240.19b–4. Market Regulation, SEC, dated July 24, 2000. The 2018–002). In addition to the proposed rule change
3 15 U.S.C. 78s(b)(3)(A)(i). question bank is available for SEC review. relating to the revised Series 7 examination, FINRA
4 17 CFR 240.19b–4(f)(1). 6 The Commission notes that the content outline
is filing with the Commission for immediate
5 FINRA also is proposing corresponding is attached to the filing, not to this Notice. effectiveness the content outlines for the other
7 17 CFR 240.24b–2.
revisions to the Series 7 question bank. Based on revised representative-level qualification
instruction from SEC staff, FINRA is submitting this 8 15 U.S.C. 78o–3(g)(3). examinations.
VerDate Sep<11>2014 19:49 Feb 26, 2018 Jkt 244001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 E:\FR\FM\27FEN1.SGM 27FEN1](https://thefederalregister.org/doc/83_FR_8563/page/1.svg)
![8526 Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Notices
passing score of the revised Series 7 and associated tasks. As such, the subject line if email is used. To help the
examination on its website, at proposed revisions would make the Commission process and review your
www.finra.org, prior to its first examination more effective. FINRA also comments more efficiently, please use
administration. provided a detailed economic impact only one method. The Commission will
assessment regarding the introduction of post all comments on the Commission’s
Availability of Content Outline
the SIE examination and the internet website (http://www.sec.gov/
The current Series 7 content outline is restructuring of the representative-level rules/sro.shtml). Copies of the
available on FINRA’s website. The examinations as part of the proposed submission, all subsequent
revised Series 7 content outline will rule change to restructure the FINRA amendments, all written statements
replace the current content outline on representative-level qualification with respect to the proposed rule
FINRA’s website, and it will be made examination program.23 change that are filed with the
available on the website on the date of Commission, and all written
this filing. C. Self-Regulatory Organization’s
communications relating to the
FINRA is filing the proposed rule Statement on Comments on the
proposed rule change between the
change for immediate effectiveness. The Proposed Rule Change Received From
Commission and any person, other than
implementation date will be October 1, Members, Participants, or Others
those that may be withheld from the
2018, to coincide with the Written comments were neither public in accordance with the
implementation of the restructured solicited nor received. provisions of 5 U.S.C. 552, will be
representative-level examination III. Date of Effectiveness of the available for website viewing and
program. FINRA will also announce the Proposed Rule Change and Timing for printing in the Commission’s Public
implementation date of the proposed Commission Action Reference Room, 100 F Street NE,
rule change in a Regulatory Notice. Washington, DC 20549, on official
The foregoing rule change has become business days between the hours of
2. Statutory Basis effective pursuant to Section 19(b)(3)(A) 10:00 a.m. and 3:00 p.m. Copies of the
FINRA believes that the proposed of the Act 24 and paragraph (f)(1) of Rule filing also will be available for
revisions to the Series 7 examination 19b–4 thereunder.25 At any time within inspection and copying at the principal
program are consistent with the 60 days of the filing of the proposed rule office of FINRA. All comments received
provisions of Section 15A(b)(6) of the change, the Commission summarily may will be posted without change. Persons
Act,21 which requires, among other temporarily suspend such rule change if submitting comments are cautioned that
things, that FINRA rules must be it appears to the Commission that such we do not redact or edit personal
designed to prevent fraudulent and action is necessary or appropriate in the identifying information from comment
manipulative acts and practices, to public interest, for the protection of submissions. You should submit only
promote just and equitable principles of investors, or otherwise in furtherance of information that you wish to make
trade, and, in general, to protect the purposes of the Act. If the available publicly. All submissions
investors and the public interest, and Commission takes such action, the should refer to File Number SR–FINRA–
Section 15A(g)(3) of the Act,22 which Commission shall institute proceedings 2018–008, and should be submitted on
authorizes FINRA to prescribe standards to determine whether the proposed rule or before March 20, 2018.
of training, experience, and competence should be approved or disapproved.
For the Commission, by the Division of
for persons associated with FINRA IV. Solicitation of Comments Trading and Markets, pursuant to delegated
members. The proposed rule change authority.26
will improve the examination program, Interested persons are invited to
Eduardo A. Aleman,
without compromising the qualification submit written data, views, and
arguments concerning the foregoing, Assistant Secretary.
standards, by removing the general [FR Doc. 2018–03886 Filed 2–26–18; 8:45 am]
knowledge content currently covered on including whether the proposed rule
the Series 7 examination, since that change is consistent with the Act. BILLING CODE 8011–01–P
content will be covered in the co- Comments may be submitted by any of
requisite SIE examination. In addition, the following methods:
SECURITIES AND EXCHANGE
the proposed revisions will further the Electronic Comments COMMISSION
purposes of the Act by updating the
• Use the Commission’s internet [Release No. 34–82750; File No. SR–FINRA–
examination program to reflect changes
comment form (http://www.sec.gov/ 2018–004]
to the laws, rules and regulations
rules/sro.shtml); or
covered by the examination. • Send an email to rule-comments@ Self-Regulatory Organizations;
B. Self-Regulatory Organization’s sec.gov. Please include File Number SR– Financial Industry Regulatory
Statement on Burden on Competition FINRA–2018–008 on the subject line. Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
FINRA does not believe that the Paper Comments
Rule Change To Revise the Investment
proposed rule change will result in any • Send paper comments in triplicate Banking Representative (Series 79)
burden on competition that is not to Secretary, Securities and Exchange Examination
necessary or appropriate in furtherance Commission, 100 F Street NE,
of the purposes of the Act. The updated Washington, DC 20549–1090. February 21, 2018.
examination aligns with the functions Pursuant to Section 19(b)(1) of the
All submissions should refer to File
and associated tasks currently Securities Exchange Act of 1934
daltland on DSKBBV9HB2PROD with NOTICES
Number SR–FINRA–2018–008. This file
performed by a General Securities (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
number should be included on the
Representative and tests knowledge of notice is hereby given that on February
the most current laws, rules, regulations 23 See Securities Exchange Act Release No. 80371 9, 2018, Financial Industry Regulatory
and skills relevant to those functions (April 4, 2017), 82 FR 17336 (April 10, 2017)
(Notice of Filing of File No. SR–FINRA–2017–007). 26 17 CFR 200.30–3(a)(12).
21 15 U.S.C. 78o–3(b)(6). 24 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
22 15 U.S.C. 78o–3(g)(3). 25 17 CFR 240.19b–4(f)(1). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 19:49 Feb 26, 2018 Jkt 244001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\27FEN1.SGM 27FEN1](https://thefederalregister.org/doc/83_FR_8563/page/3.svg)
Document Created: 2018-02-27 01:14:45
Document Modified: 2018-02-27 01:14:45
| 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 | 83 FR 8524 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR