[Federal Register: June 30, 1999 (Volume 64, Number 125)] [Notices] [Page 35231] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr30jn99-132] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-41548; File No. SR-NYSE-99-28] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the New York Stock Exchange, Inc., to Increase the Examination Development Fee for the General Securities Representative Examination (Series 7) June 22, 1999. 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 June 17, 1999, the New York Stock Exchange, Incorporated (``NYSE'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in items I, II, and III below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the NYSE under Section 19(b)(3)(A)(ii) of the Act,\3\ which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to increase from $40 to $90 the examination development fee for the General Securities Representative Examination (``Series 7 Exam''). The fee will be charged to members and member organizations for each person who applies to take the Series 7 Exam. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with Commission, the Exchange 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. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The initial exam development fee of $10 was adopted in 1986 and was intended to offset in part the costs of providing qualification examination programs by the Exchange. Prior to 1986 the Exchange received no fees to cover such expenses. In 1990, the fee was increased from $10 to $40. The Exchange proposes to increase the fee to $90 to offset, in part, the costs of qualification examination and other sales practice related services provided by the Exchange. These costs include industry meetings, manpower, supplies, overhead, and other expenses associated with developing and maintaining the examination as well as costs to maintain the Exchange's Sales Practice Review Program including, but not limited to, field examinations. The development fee increase would also be used for the implementation of enhancements to the Series 7 Exam program which will ensure that the examination continues to reflect sound psychometric principles as well as employs up-to-date technology. 2. Statutory Basis The statutory basis for the proposed rule change is Section 6(b)(4) of the Act,\4\ which requires the rules of an exchange to provide for the equitable allocation of reasonable dues fees, and other charges among the members, issuers and other persons using its services. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange believe that the proposed rule change will not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act \5\ and subparagraph (f)(2) of Rule 19b-4 thereunder,\6\ because it involves a due, fee, or other charge. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate 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 furthermore of the purposes of the Act.\7\ --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(3)(A)(ii). \6\ 17 CFR 240.19b-4(f)(2). \7\ In reviewing this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 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 inspection and copying in the Commission's Public Reference Room. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All submissions should refer to file number SR-NYSE-99-28, and should be submitted by July 21, 1999. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 99-16646 Filed 6-29-99; 8:45 am] BILLING CODE 8010-01-M