83 FR 8559 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Revise the Research Analyst (Series 86 and 87) Examinations
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 39 (February 27, 2018)
Federal Register Volume 83, Issue 39 (February 27, 2018)
| Page Range | 8559-8561 | |
| FR Document | 2018-03890 |
[Federal Register Volume 83, Number 39 (Tuesday, February 27, 2018)] [Notices] [Pages 8559-8561] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-03890] [[Page 8559]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82751; File No. SR-FINRA-2018-005] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Revise the Research Analyst (Series 86 and 87) Examinations 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 9, 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 Research Analyst (Series 86 and 87) examinations 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 examinations and to incorporate the functions and associated tasks currently performed by a Research Analyst. 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 86 and 87 question banks. 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 banks. 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 banks are available for SEC review. --------------------------------------------------------------------------- The revised Series 86 and 87 content outline is attached.\6\ The revised Series 86 and 87 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 86 and 87 examinations, FINRA will file with the Commission for immediate effectiveness the content outlines for the other revised representative-level qualification examinations. --------------------------------------------------------------------------- Currently, an individual registering as an equity Research Analyst must satisfy the General Securities Representative co-requisite registration and pass the Research Analyst (Series 86 and 87) examinations. The purpose of the current co-requisite is to ensure that Research Analysts have general securities knowledge, because the Series 86 and 87 examinations do not cover such knowledge. As part of the restructuring process, FINRA has eliminated the requirement that individuals registering as Research Analysts satisfy the General Securities Representative co-requisite registration. Instead, individuals registering as Research Analysts will be required to pass the SIE examination, which will [[Page 8560]] cover general securities knowledge, as a co-requisite. Further, FINRA, in consultation with a committee of industry representatives, undertook a review of the Research Analyst (Series 86 and 87) examinations to revise the Series 86 and 87 content outline to reflect changes to the laws, rules and regulations covered by the examinations and to incorporate the functions and associated tasks currently performed by a Research Analyst. The proposed change will align the organization of the Series 86 and 87 content outline with the organization of the content outlines of the other revised representative-level examinations.\13\ FINRA also is proposing to make other changes to the format of the Series 86 and 87 content outline. --------------------------------------------------------------------------- \13\ FINRA currently has organized several FINRA qualification examinations, such as the Securities Trader (Series 57) examination, based on the functions that are performed by the respective registered persons and the associated tasks. FINRA is proposing similar layouts for all of the representative-level examinations, including the Series 86 and 87 examinations. --------------------------------------------------------------------------- Beginning on October 1, 2018, new applicants seeking to register as Research Analysts must pass the SIE examination as well as the revised Research Analyst (Series 86 and 87) examinations. Current Content Outline The Series 86 examination contains the analysis portion of the Research Analyst examinations and tests knowledge of fundamental analysis and valuation of equity securities. The Series 87 examination contains the regulatory portion of the Research Analyst examinations and tests knowledge of applicable rules and regulations pertaining to equity research. The current Series 86 and 87 content outline is divided into four sections. The Series 86 covers two sections and the Series 87 covers the other two sections. The following are the four sections, denoted Section 1 through Section 4, with the associated number of questions: Series 86 1. Information and Data Collection, 10 questions; 2. Analysis, Modeling and Valuation, 90 questions; Series 87 3. Preparation of Research Reports, 32 questions; and 4. Dissemination of Information, 18 questions. In addition, each section includes references to 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. Revised Content Outline FINRA is proposing to update the content outline to reflect changes to the laws, rules and regulations covered by the examinations and to incorporate the functions and associated tasks currently performed by a Research Analyst. However, FINRA is not proposing to adjust the number of questions on the examinations or to adjust the number of questions assigned to each section on the current outline. Further, the proposed functions match the sections on the current outline. The following are the four major job functions, denoted Function 1 through Function 4, with the associated number of questions: Series 86 Function 1: Information and Data Collection, 10 questions; Function 2: Analysis, Modeling and Valuation, 90 questions; Series 87 Function 3: Preparation of Research Reports, 32 questions; and Function 4: Dissemination of Information, 18 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; \14\ four tasks (2.1-2.4) associated with Function 2;\15\ four tasks (3.1-3.4) associated with Function 3; \16\ and five tasks (4.1-4.5) associated with Function 4.\17\ For example, one such task (Task 1.1) is gathering macroeconomic data.\18\ Further, the content outline lists the knowledge required to perform each function and associated tasks (e.g., short- and long-term trends in the economy, demographic information, domestic and international issues). 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 (e.g., FINRA Rule 2241 (Research Analysts and Research Reports)). --------------------------------------------------------------------------- \14\ See Exhibit 3a, Outline Page 3. The outline is attached as Exhibit 3a to the 19b-4 form. \15\ See Exhibit 3a, Outline Pages 4-6. \16\ See Exhibit 3a, Outline Pages 7-8. \17\ See Exhibit 3a, Outline Pages 9-10. \18\ See Exhibit 3a, Outline Page 3. --------------------------------------------------------------------------- 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 2711 (Research Analysts and Research Reports) was adopted as FINRA Rule 2241 (Research Analysts and Research Reports)).\19\ --------------------------------------------------------------------------- \19\ See Rule Conversion Chart, available at http://www.finra.org/industry/finra-rule-consolidation. --------------------------------------------------------------------------- FINRA is proposing similar changes to the Series 86 and 87 selection specifications and question banks. Finally, FINRA is proposing to make other changes to the format of the content outline, including to the preface, sample questions and reference materials.\20\ 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 examinations; (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 examinations.\21\ --------------------------------------------------------------------------- \20\ FINRA is proposing similar changes to the content outlines for other representative-level examinations. \21\ See Exhibit 3a, Outline Page 2. --------------------------------------------------------------------------- The number of scored questions on the Series 86 examination will remain at 100 questions,\22\ and candidates will continue to have four hours and 30 minutes to complete the examination. The number of scored questions on the Series 87 examination will remain at 50 questions,\23\ and candidates will continue to have one hour and 45 minutes to complete the examination. Currently, a score of 73 percent is required to pass the Series 86 examination and a score of 74 percent is required to pass the Series 87 examination. The passing score for each examination will also remain the same. --------------------------------------------------------------------------- \22\ Consistent with FINRA's practice of including ``pretest'' questions on examinations, the Series 86 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 86 examination actually consists of 110 questions, 100 of which are scored. The 10 pretest questions are randomly distributed throughout the examination. \23\ The Series 87 examination includes five additional pretest questions. Therefore, the Series 87 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 86 and 87 content outline is available on FINRA's website, at www.finra.org. The revised Series 86 [[Page 8561]] and 87 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 86 and 87 examinations are consistent with the provisions of Section 15A(b)(6) of the Act,\24\ 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,\25\ 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 examinations and to incorporate the functions and associated tasks currently performed by a Research Analyst. --------------------------------------------------------------------------- \24\ 15 U.S.C. 78o-3(b)(6). \25\ 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 examinations align with the functions and associated tasks currently performed by a Research Analyst 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 examinations 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.\26\ --------------------------------------------------------------------------- \26\ 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 \27\ and paragraph (f)(1) of Rule 19b-4 thereunder.\28\ 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. --------------------------------------------------------------------------- \27\ 15 U.S.C. 78s(b)(3)(A). \28\ 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-2018-005 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-2018-005. 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-2018-005 and should be submitted on or before March 20, 2018. --------------------------------------------------------------------------- \29\ 17 CFR 200.30b-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\29\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-03890 Filed 2-26-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Notices 8559
SECURITIES AND EXCHANGE Analyst. In addition, FINRA is examination program.9 The rule change,
COMMISSION proposing to make changes to the format which will become effective on October
of the content outline. FINRA is not 1, 2018,10 restructures the examination
[Release No. 34–82751; File No. SR–FINRA–
proposing any textual changes to the By- program into a new format whereby all
2018–005]
Laws, Schedules to the By-Laws or new representative-level applicants will
Self-Regulatory Organizations; Rules of FINRA. be required to take a general knowledge
Financial Industry Regulatory The revised Series 86 and 87 content examination (the Securities Industry
Authority, Inc.; Notice of Filing and outline is attached.6 The revised Series Essentials or SIE TM) and a tailored,
Immediate Effectiveness of a Proposed 86 and 87 selection specifications have specialized knowledge examination (a
Rule Change To Revise the Research been submitted to the Commission revised representative-level
Analyst (Series 86 and 87) under separate cover with a request for qualification examination) for their
Examinations confidential treatment pursuant to SEA particular registered role.
Rule 24b–2.7 The restructured program eliminates
February 21, 2018. duplicative testing of general securities
The text of the proposed rule change knowledge on the current
Pursuant to Section 19(b)(1) of the
is available on FINRA’s website at representative-level qualification
Securities Exchange Act of 1934
http://www.finra.org, at the principal examinations by moving such content
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
office of FINRA and at the into the SIE examination.11 The SIE
notice is hereby given that on February
Commission’s Public Reference Room. examination will test fundamental
9, 2018, Financial Industry Regulatory
[sic] securities-related knowledge, including
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission II. Self-Regulatory Organization’s knowledge of basic products, the
(‘‘SEC’’ or ‘‘Commission’’) the proposed Statement of the Purpose of, and structure and function of the securities
rule change as described in Items I, II, Statutory Basis for, the Proposed Rule industry, the regulatory agencies and
and III below, which Items have been Change their functions and regulated and
prepared by FINRA. FINRA has prohibited practices, whereas the
designated the proposed rule change as In its filing with the Commission, revised representative-level
‘‘constituting a stated policy, practice, FINRA included statements concerning qualification examinations will test
or interpretation with respect to the the purpose of and basis for the knowledge relevant to day-to-day
meaning, administration, or proposed rule change and discussed any activities, responsibilities and job
enforcement of an existing rule’’ under comments it received on the proposed functions of representatives.12
Section 19(b)(3)(A)(i) of the Act 3 and rule change. The text of these statements Currently, an individual registering as
Rule 19b–4(f)(1) thereunder,4 which may be examined at the places specified an equity Research Analyst must satisfy
renders the proposal effective upon in Item IV below. FINRA has prepared the General Securities Representative
receipt of this filing by the Commission. summaries, set forth in sections A, B, co-requisite registration and pass the
The Commission is publishing this and C below, of the most significant Research Analyst (Series 86 and 87)
notice to solicit comments on the aspects of such statements. examinations. The purpose of the
proposed rule change from interested current co-requisite is to ensure that
A. Self-Regulatory Organization’s Research Analysts have general
persons. Statement of the Purpose of, and securities knowledge, because the Series
I. Self-Regulatory Organization’s Statutory Basis for, the Proposed Rule 86 and 87 examinations do not cover
Statement of the Terms of Substance of Change such knowledge. As part of the
the Proposed Rule Change 1. Purpose restructuring process, FINRA has
FINRA is proposing revisions to the eliminated the requirement that
Section 15A(g)(3) of the Act 8 individuals registering as Research
content outline and selection authorizes FINRA to prescribe standards
specifications for the Research Analyst Analysts satisfy the General Securities
of training, experience, and competence Representative co-requisite registration.
(Series 86 and 87) examinations as part for persons associated with FINRA
of the restructuring of the Instead, individuals registering as
members. In accordance with that Research Analysts will be required to
representative-level examination provision, FINRA has developed pass the SIE examination, which will
program.5 The proposed revisions also examinations that are designed to
update the material to reflect changes to establish that persons associated with 9 See Securities Exchange Act Release No. 81098
the laws, rules and regulations covered FINRA members have attained specified (July 7, 2017), 82 FR 32419 (July 13, 2017) (Order
by the examinations and to incorporate levels of competence and knowledge, Approving File No. SR–FINRA–2017–007).
the functions and associated tasks consistent with applicable registration
10 See Regulatory Notice 17–30 (SEC Approves
currently performed by a Research Consolidated FINRA Registration Rules,
requirements under FINRA rules. Restructured Representative-Level Qualification
1 15
FINRA periodically reviews the content Examinations and Changes to Continuing Education
U.S.C. 78s(b)(1). Requirements) (October 2017).
2 17 CFR 240.19b–4.
of the examinations to determine 11 Each of the current representative-level
3 15 U.S.C. 78s(b)(3)(A)(i). whether revisions are necessary or examinations covers general securities knowledge,
4 17 CFR 240.19b–4(f)(1). appropriate in view of changes with the exception of the Research Analyst (Series
5 FINRA also is proposing corresponding pertaining to the subject matter covered 86 and 87) examinations.
revisions to the Series 86 and 87 question banks. by the examinations. 12 FINRA filed the SIE content outline with the
Based on instruction from SEC staff, FINRA is SEC for immediate effectiveness. See Securities
The SEC recently approved a
daltland on DSKBBV9HB2PROD with NOTICES
submitting this filing for immediate effectiveness Exchange Act Release No. 82578 (January 24, 2018),
pursuant to Section 19(b)(3)(A) of the Act and Rule proposed rule change to restructure the 83 FR 4375 (January 30, 2018) (Notice of Filing and
19b–4(f)(1) thereunder, and is not filing the FINRA representative-level qualification Immediate Effectiveness of File No. SR–FINRA–
question banks. See Letter to Alden S. Adkins, 2018–002). In addition to the proposed rule change
Senior Vice President and General Counsel, NASD relating to the revised Series 86 and 87
6 The Commission notes that the content outline
Regulation, from Belinda Blaine, Associate Director, examinations, FINRA will file with the Commission
Division of Market Regulation, SEC, dated July 24, is attached to the filing, not to this Notice. for immediate effectiveness the content outlines for
7 17 CFR 240.24b–2.
2000. The question banks are available for SEC the other revised representative-level qualification
review. 8 15 U.S.C. 78o–3(g)(3). examinations.
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![Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Notices 8561
and 87 content outline will replace the C. Self-Regulatory Organization’s Commission and any person, other than
current content outline on FINRA’s Statement on Comments on the those that may be withheld from the
website, and it will be made available Proposed Rule Change Received From public in accordance with the
on the website on the date of this filing. Members, Participants, or Others provisions of 5 U.S.C. 552, will be
FINRA is filing the proposed rule Written comments were neither available for website viewing and
change for immediate effectiveness. The solicited nor received. printing in the Commission’s Public
implementation date will be October 1, Reference Room, 100 F Street NE,
2018, to coincide with the III. Date of Effectiveness of the Washington, DC 20549, on official
implementation of the restructured Proposed Rule Change and Timing for business days between the hours of
representative-level examination Commission Action 10:00 a.m. and 3:00 p.m. Copies of the
program. FINRA will also announce the The foregoing rule change has become filing also will be available for
implementation date of the proposed effective pursuant to Section 19(b)(3)(A) inspection and copying at the principal
rule change in a Regulatory Notice. of the Act 27 and paragraph (f)(1) of Rule office of FINRA. All comments received
19b–4 thereunder.28 At any time within will be posted without change. Persons
2. Statutory Basis submitting comments are cautioned that
60 days of the filing of the proposed rule
FINRA believes that the proposed change, the Commission summarily may we do not redact or edit personal
revisions to the Series 86 and 87 temporarily suspend such rule change if identifying information from comment
examinations are consistent with the it appears to the Commission that such submissions. You should submit only
provisions of Section 15A(b)(6) of the action is necessary or appropriate in the information that you wish to make
Act,24 which requires, among other public interest, for the protection of available publicly. All submissions
things, that FINRA rules must be investors, or otherwise in furtherance of should refer to File Number SR–FINRA–
designed to prevent fraudulent and the purposes of the Act. If the 2018–005 and should be submitted on
manipulative acts and practices, to Commission takes such action, the or before March 20, 2018.
promote just and equitable principles of Commission shall institute proceedings For the Commission, by the Division of
trade, and, in general, to protect to determine whether the proposed rule Trading and Markets, pursuant to delegated
investors and the public interest, and should be approved or disapproved. authority.29
Section 15A(g)(3) of the Act,25 which Eduardo A. Aleman,
IV. Solicitation of Comments
authorizes FINRA to prescribe standards Assistant Secretary.
of training, experience, and competence Interested persons are invited to [FR Doc. 2018–03890 Filed 2–26–18; 8:45 am]
for persons associated with FINRA submit written data, views and
BILLING CODE 8011–01–P
members. FINRA believes that the arguments concerning the foregoing,
proposed revisions will further these including whether the proposed rule
purposes by updating the examination change is consistent with the Act. SECURITIES AND EXCHANGE
program to reflect changes to the laws, Comments may be submitted by any of COMMISSION
rules and regulations covered by the the following methods:
examinations and to incorporate the Electronic Comments Sunshine Act Meetings
functions and associated tasks currently
performed by a Research Analyst. • Use the Commission’s internet TIME AND DATE: 2:00 p.m. on Thursday,
comment form (http://www.sec.gov/ March 1, 2018.
B. Self-Regulatory Organization’s rules/sro.shtml); or PLACE: Closed Commission Hearing
Statement on Burden on Competition • Send an email to rule-comments@ Room 10800.
FINRA does not believe that the sec.gov. Please include File Number SR– STATUS: This meeting will be closed to
proposed rule change will result in any FINRA–2018–005 on the subject line. the public.
burden on competition that is not Paper Comments MATTERS TO BE CONSIDERED:
necessary or appropriate in furtherance • Send paper comments in triplicate Commissioners, Counsel to the
of the purposes of the Act. The updated Commissioners, the Secretary to the
to Secretary, Securities and Exchange
examinations align with the functions Commission, and recording secretaries
Commission, 100 F Street NE,
and associated tasks currently will attend the closed meeting. Certain
Washington, DC 20549–1090.
performed by a Research Analyst and staff members who have an interest in
All submissions should refer to File the matters also may be present.
tests knowledge of the most current
Number SR–FINRA–2018–005. This file The General Counsel of the
laws, rules, regulations and skills
number should be included on the Commission, or his designee, has
relevant to those functions and
subject line if email is used. To help the certified that, in his opinion, one or
associated tasks. As such, the proposed
Commission process and review your more of the exemptions set forth in 5
revisions would make the examinations
comments more efficiently, please use U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
more effective. FINRA also provided a
only one method. The Commission will and (10) and 17 CFR 200.402(a)(3),
detailed economic impact assessment
post all comments on the Commission’s (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
regarding the introduction of the SIE
internet website (http://www.sec.gov/ (a)(10), permit consideration of the
examination and the restructuring of the
rules/sro.shtml). Copies of the scheduled matters at the closed meeting.
representative-level examinations as
submission, all subsequent Commissioner Jackson, as duty
part of the proposed rule change to
amendments, all written statements officer, voted to consider the items
restructure the FINRA representative-
with respect to the proposed rule listed for the closed meeting in closed
daltland on DSKBBV9HB2PROD with NOTICES
level qualification examination
change that are filed with the session.
program.26
Commission, and all written The subject matters of the closed
24 15 U.S.C. 78o–3(b)(6).
communications relating to the meeting will be:
25 15 U.S.C. 78o–3(g)(3). proposed rule change between the Institution and settlement of
26 See Securities Exchange Act Release No. 80371 injunctive actions;
27 15 U.S.C. 78s(b)(3)(A).
(April 4, 2017), 82 FR 17336 (April 10, 2017)
(Notice of Filing of File No. SR–FINRA–2017–007). 28 17 CFR 240.19b–4(f)(1). 29 17 CFR 200.30b–3(a)(12).
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Document Created: 2018-02-27 01:14:25
Document Modified: 2018-02-27 01:14:25
| 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 8559 |
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