83 FR 8533 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Revise the Investment Company and Variable Contracts Products Representative (Series 6) 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 | 8533-8535 | |
| FR Document | 2018-03893 |
[Federal Register Volume 83, Number 39 (Tuesday, February 27, 2018)] [Notices] [Pages 8533-8535] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-03893] [[Page 8533]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82754; File No. SR-FINRA-2018-007] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Revise the Investment Company and Variable Contracts Products Representative (Series 6) 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 Investment Company and Variable Contracts Products Representative (Series 6) 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 6 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 6 content outline is attached.\6\ The revised Series 6 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 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 SIE \TM\) 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 6 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 Investment Company and Variable Contracts Products Representative (Series 6) 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 an Investment Company and Variable Contracts Products Representative. As a result of this review, FINRA also is proposing to revise the Series 6 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 6 content outline. Beginning on October 1, 2018, new applicants seeking to register as [[Page 8534]] Investment Company and Variable Contracts Products Representatives must pass the SIE examination and the revised Investment Company and Variable Contracts Products Representative (Series 6) examination. Current Content Outline The current Series 6 content outline is divided into four major job functions that are performed by an Investment Company and Variable Contracts Products Representative. The following are the four major job functions, denoted Function 1 through Function 4, with the associated number of questions: Function 1: Regulatory fundamentals and business development, 22 questions; Function 2: Evaluates customers' financial information, identifies investment objectives, provides information on investment products, and makes suitable recommendations, 47 questions; Function 3: Opens, maintains, transfers and closes accounts and retains appropriate account records, 21 questions; and Function 4: Obtains, verifies, and confirms customer purchase and sale instructions, 10 questions. Each function also includes specific tasks describing activities associated with performing that function. There are four tasks (1.1- 1.4) 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 two tasks (4.1-4.2) associated with Function 4. For example, one such task (Task 2.1) is to gather customers' financial and non-financial information to identify, analyze, and assess risk tolerance, investment experience and sophistication level. Further, the content outline lists the knowledge required to perform each function and associated tasks (e.g., account authorizations and legal documents). 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 applicable federal securities laws, as well as FINRA and other self-regulatory organization rules and regulations. 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 6 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 6 examination. As a result, the revised Series 6 examination will test knowledge specific to the day- to-day activities, responsibilities and job functions of an Investment Company and Variable Contracts Products Representative. Further, FINRA is proposing to make changes to the major job functions that are performed by an Investment Company and Variable Contracts Products Representative. The proposed change aligns the major job functions performed by an Investment Company and Variable Contracts Products Representative with the major job functions performed by other sales representatives, including General Securities 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, 12 questions; Function 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives, 8 questions; Function 3: Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records, 25 questions; and Function 4: Obtains and Verifies Customers' Purchase and Sales Instructions; Processes, Completes and Confirms Transactions, 5 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 an Investment Company and Variable Contracts Products Representative. The questions on the revised Series 6 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 three tasks (4.1-4.3) 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 3-4. The outline is attached as Exhibit 3a to the 19b-4 form. \14\ See Exhibit 3a, Outline Pages 5-6. \15\ See Exhibit 3a, Outline Pages 7-10. \16\ See Exhibit 3a, Outline Pages 11-12. \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 6 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 6 examination will be reduced from 100 questions to 50 questions.\20\ [[Page 8535]] Further, the test time, which is the amount of time candidates will have to complete the examination, will be reduced from two hours and 15 minutes to one hour and 30 minutes. Currently, a score of 70 percent is required to pass the examination. FINRA will publish the passing score of the revised Series 6 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 6 examination includes five 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 6 examination actually consists of 55 questions, 50 of which are scored. The five pretest questions are randomly distributed throughout the examination. --------------------------------------------------------------------------- Availability of Content Outline The current Series 6 content outline is available on FINRA's website. The revised Series 6 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 6 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 6 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 an Investment Company and Variable Contracts Products 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 rule-comments@sec.gov. Please include File Number SR-FINRA-2018-007 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-2018-007. 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-2018-007 and should be submitted on or before March 20, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\26\ --------------------------------------------------------------------------- \26\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-03893 Filed 2-26-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Notices 8533
SECURITIES AND EXCHANGE format of the content outline. FINRA is 1, 2018,10 restructures the examination
COMMISSION not proposing any textual changes to the program into a new format whereby all
By-Laws, Schedules to the By-Laws or new representative-level applicants will
[Release No. 34–82754; File No. SR–FINRA–
2018–007]
Rules of FINRA. be required to take a general knowledge
The revised Series 6 content outline is examination (the Securities Industry
Self-Regulatory Organizations; attached.6 The revised Series 6 selection Essentials or SIE TM) and a tailored,
Financial Industry Regulatory specifications have been submitted to specialized knowledge examination (a
Authority, Inc.; Notice of Filing and the Commission under separate cover revised representative-level
Immediate Effectiveness of a Proposed with a request for confidential treatment qualification examination) for their
Rule Change To Revise the Investment pursuant to SEA Rule 24b–2.7 particular registered role.
Company and Variable Contracts The text of the proposed rule change The restructured program eliminates
Products Representative (Series 6) is available on FINRA’s website at duplicative testing of general securities
Examination http://www.finra.org, at the principal knowledge on the current
office of FINRA and at the representative-level qualification
February 21, 2018. Commission’s Public Reference Room. examinations by moving such content
Pursuant to Section 19(b)(1) of the [sic] into the SIE examination.11 The SIE
Securities Exchange Act of 1934 examination will test fundamental
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 II. Self-Regulatory Organization’s
securities-related knowledge, including
notice is hereby given that on February Statement of the Purpose of, and
knowledge of basic products, the
12, 2018, Financial Industry Regulatory Statutory Basis for, the Proposed Rule
structure and function of the securities
Authority, Inc. (‘‘FINRA’’) filed with the Change
industry, the regulatory agencies and
Securities and Exchange Commission In its filing with the Commission, their functions and regulated and
(‘‘SEC’’ or ‘‘Commission’’) the proposed FINRA included statements concerning prohibited practices, whereas the
rule change as described in Items I, II, the purpose of and basis for the revised representative-level
and III below, which Items have been proposed rule change and discussed any qualification examinations will test
prepared by FINRA. FINRA has comments it received on the proposed knowledge relevant to day-to-day
designated the proposed rule change as rule change. The text of these statements activities, responsibilities and job
‘‘constituting a stated policy, practice, may be examined at the places specified functions of representatives.12
or interpretation with respect to the in Item IV below. FINRA has prepared As part of the restructuring process
meaning, administration, or summaries, set forth in sections A, B, and in consultation with a committee of
enforcement of an existing rule’’ under and C below, of the most significant industry representatives, FINRA
Section 19(b)(3)(A)(i) of the Act 3 and aspects of such statements. undertook a review of the Investment
Rule 19b–4(f)(1) thereunder,4 which Company and Variable Contracts
A. Self-Regulatory Organization’s
renders the proposal effective upon Products Representative (Series 6)
Statement of the Purpose of, and
receipt of this filing by the Commission. examination to remove the general
Statutory Basis for, the Proposed Rule
The Commission is publishing this securities knowledge currently covered
Change
notice to solicit comments on the on the examination and to create a
proposed rule change from interested 1. Purpose tailored examination to test knowledge
persons. Section 15A(g)(3) of the Act 8 relevant to the day-to-day activities,
I. Self-Regulatory Organization’s authorizes FINRA to prescribe standards responsibilities and job functions of an
Statement of the Terms of Substance of of training, experience, and competence Investment Company and Variable
the Proposed Rule Change for persons associated with FINRA Contracts Products Representative. As a
members. In accordance with that result of this review, FINRA also is
FINRA is proposing revisions to the proposing to revise the Series 6 content
provision, FINRA has developed
content outline and selection outline to reflect changes to the laws,
examinations that are designed to
specifications for the Investment rules and regulations covered by the
establish that persons associated with
Company and Variable Contracts examination. In addition, FINRA is
FINRA members have attained specified
Products Representative (Series 6) proposing to make changes to the format
levels of competence and knowledge,
examination as part of the restructuring of the Series 6 content outline.
consistent with applicable registration
of the representative-level examination Beginning on October 1, 2018, new
requirements under FINRA rules.
program.5 The proposed revisions also applicants seeking to register as
FINRA periodically reviews the content
update the material to reflect changes to
of the examinations to determine
the laws, rules and regulations covered 10 See Regulatory Notice 17–30 (SEC Approves
whether revisions are necessary or
by the examination. In addition, FINRA Consolidated FINRA Registration Rules,
appropriate in view of changes Restructured Representative-Level Qualification
is proposing to make changes to the
pertaining to the subject matter covered Examinations and Changes to Continuing Education
by the examinations. Requirements) (October 2017).
1 15 U.S.C. 78s(b)(1). 11 Each of the current representative-level
2 17 CFR 240.19b–4. The SEC recently approved a
examinations covers general securities knowledge,
3 15 U.S.C. 78s(b)(3)(A)(i). proposed rule change to restructure the with the exception of the Research Analyst (Series
4 17 CFR 240.19b–4(f)(1). FINRA representative-level qualification 86 and 87) examinations.
5 FINRA also is proposing corresponding examination program.9 The rule change, 12 FINRA filed the SIE content outline with the
revisions to the Series 6 question bank. Based on which will become effective on October SEC for immediate effectiveness. See Securities
daltland on DSKBBV9HB2PROD with NOTICES
instruction from SEC staff, FINRA is submitting this Exchange Act Release No. 82578 (January 24, 2018),
filing for immediate effectiveness pursuant to 6 The Commission notes that the content outline
83 FR 4375 (January 30, 2018) (Notice of Filing and
Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(1) Immediate Effectiveness of File No. SR–FINRA–
thereunder, and is not filing the question bank. See is attached to the filing, not to this Notice. 2018–002). In addition to the proposed rule change
7 17 CFR 240.24b–2.
Letter to Alden S. Adkins, Senior Vice President relating to the revised Series 6 examination, FINRA
8 15 U.S.C. 78o–3(g)(3).
and General Counsel, NASD Regulation, from is filing with the Commission for immediate
Belinda Blaine, Associate Director, Division of 9 See Securities Exchange Act Release No. 81098 effectiveness the content outlines for the other
Market Regulation, SEC, dated July 24, 2000. The (July 7, 2017), 82 FR 32419 (July 13, 2017) (Order revised representative-level qualification
question bank is available for SEC review. Approving File No. SR–FINRA–2017–007). examinations.
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![Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Notices 8535
Further, the test time, which is the B. Self-Regulatory Organization’s Electronic Comments
amount of time candidates will have to Statement on Burden on Competition
complete the examination, will be • Use the Commission’s internet
reduced from two hours and 15 minutes FINRA does not believe that the comment form (http://www.sec.gov/
to one hour and 30 minutes. Currently, proposed rule change will result in any rules/sro.shtml); or
a score of 70 percent is required to pass burden on competition that is not • Send an email to rule-comments@
the examination. FINRA will publish necessary or appropriate in furtherance sec.gov. Please include File Number SR–
the passing score of the revised Series of the purposes of the Act. The updated FINRA–2018–007 on the subject line.
examination aligns with the functions
6 examination on its website, at
and associated tasks currently Paper Comments
www.finra.org, prior to its first
performed by an Investment Company
administration.
and Variable Contracts Products • Send paper comments in triplicate
Availability of Content Outline Representative and tests knowledge of to Secretary, Securities and Exchange
the most current laws, rules, regulations Commission, 100 F Street NE,
The current Series 6 content outline is and skills relevant to those functions Washington, DC 20549–1090.
available on FINRA’s website. The and associated tasks. As such, the All submissions should refer to File
revised Series 6 content outline will proposed revisions would make the Number SR–FINRA–2018–007. This file
replace the current content outline on examination more effective. FINRA also number should be included on the
FINRA’s website, and it will be made provided a detailed economic impact
subject line if email is used. To help the
available on the website on the date of assessment regarding the introduction of
Commission process and review your
this filing. the SIE examination and the
restructuring of the representative-level comments more efficiently, please use
FINRA is filing the proposed rule only one method. The Commission will
change for immediate effectiveness. The examinations as part of the proposed
rule change to restructure the FINRA post all comments on the Commission’s
implementation date will be October 1, internet website (http://www.sec.gov/
2018, to coincide with the representative-level qualification
examination program.23 rules/sro.shtml). Copies of the
implementation of the restructured submission, all subsequent
representative-level examination C. Self-Regulatory Organization’s amendments, all written statements
program. FINRA will also announce the Statement on Comments on the with respect to the proposed rule
implementation date of the proposed Proposed Rule Change Received From change that are filed with the
rule change in a Regulatory Notice. Members, Participants, or Others Commission, and all written
2. Statutory Basis Written comments were neither communications relating to the
solicited nor received. proposed rule change between the
FINRA believes that the proposed Commission and any person, other than
revisions to the Series 6 examination III. Date of Effectiveness of the those that may be withheld from the
program are consistent with the Proposed Rule Change and Timing for public in accordance with the
provisions of Section 15A(b)(6) of the Commission Action provisions of 5 U.S.C. 552, will be
Act,21 which requires, among other available for website viewing and
things, that FINRA rules must be The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A) printing in the Commission’s Public
designed to prevent fraudulent and Reference Room, 100 F Street NE,
manipulative acts and practices, to of the Act 24 and paragraph (f)(1) of Rule
19b–4 thereunder.25 At any time within Washington, DC 20549, on official
promote just and equitable principles of business days between the hours of
trade, and, in general, to protect 60 days of the filing of the proposed rule
change, the Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
investors and the public interest, and
temporarily suspend such rule change if filing also will be available for
Section 15A(g)(3) of the Act,22 which
it appears to the Commission that such inspection and copying at the principal
authorizes FINRA to prescribe standards
action is necessary or appropriate in the office of FINRA. All comments received
of training, experience, and competence
public interest, for the protection of will be posted without change. Persons
for persons associated with FINRA
investors, or otherwise in furtherance of submitting comments are cautioned that
members. The proposed rule change
the purposes of the Act. If the we do not redact or edit personal
will improve the examination program,
Commission takes such action, the identifying information from comment
without compromising the qualification
Commission shall institute proceedings submissions. You should submit only
standards, by removing the general
to determine whether the proposed rule information that you wish to make
knowledge content currently covered on
should be approved or disapproved. available publicly. All submissions
the Series 6 examination, since that
content will be covered in the co- IV. Solicitation of Comments should refer to File Number SR–FINRA–
requisite SIE examination. In addition, 2018–007 and should be submitted on
the proposed revisions will further the Interested persons are invited to or before March 20, 2018.
purposes of the Act by updating the submit written data, views and For the Commission, by the Division of
examination program to reflect changes arguments concerning the foregoing, Trading and Markets, pursuant to delegated
to the laws, rules and regulations including whether the proposed rule authority.26
covered by the examination. change is consistent with the Act.
Eduardo A. Aleman,
daltland on DSKBBV9HB2PROD with NOTICES
Comments may be submitted by any of
the following methods: Assistant Secretary.
meet acceptable testing standards prior to use for [FR Doc. 2018–03893 Filed 2–26–18; 8:45 am]
scoring purposes. Therefore, the Series 6
examination actually consists of 55 questions, 50 of 23 See Securities Exchange Act Release No. 80371 BILLING CODE 8011–01–P
which are scored. The five pretest questions are (April 4, 2017), 82 FR 17336 (April 10, 2017)
randomly distributed throughout the examination. (Notice of Filing of File No. SR–FINRA–2017–007).
21 15 U.S.C. 78o–3(b)(6). 24 15 U.S.C. 78s(b)(3)(A).
22 15 U.S.C. 78o–3(g)(3). 25 17 CFR 240.19b–4(f)(1). 26 17 CFR 200.30–3(a)(12).
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Document Created: 2018-02-27 01:14:39
Document Modified: 2018-02-27 01:14:39
| 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 8533 |
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