[Federal Register: October 25, 2006 (Volume 71, Number 206)]
[Notices]
[Page 62498-62499]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25oc06-103]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54617; File No. SR-NASD-2006-118]
Self-Regulatory Organizations: National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Extend the Date by Which Eligible Registrants Must
Complete Firm-Element Continuing Education To Qualify To Engage in a
Security Futures Business
October 17, 2006.
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 October 16, 2006, the National Association of Securities Dealers,
Inc. (``NASD'') 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 NASD.
NASD filed the proposed rule change pursuant to paragraph (f)(6) of
Rule 19b-4 under the Act,\3\ which renders the proposal effective upon
filing with the Commission.\4\ The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
\4\ NASD gave the Commission written notice of its intention to
file the proposed rule change on October 10, 2006.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASD proposes to amend NASD Rule 1022 (Categories of Principal
Registration) and NASD Rule 1032 (Categories of Registered
Representatives) to extend to December 31, 2009 the date by which
eligible registrants must complete a firm-element continuing education
to qualify to engage in a security futures business. Below is the text
of the proposed rule change. The text of the proposed rule change is
available at the Commission's Public Reference Room, at NASD, and at
http://www.nasd.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASD 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. NASD 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
In 2003, NASD modified the following registration categories to
include the activities of engaging in and supervising securities
futures: (1) Registered Options and Security Futures Principal (the
Series 4); (2) Limited Principal--General Securities Sales Supervisor
(Series 9/10); (3) General Securities Representative (Series 7), and
(4) Limited Representative--Options and Security Futures Series (Series
42). NASD also required that persons currently registered or becoming
registered in these categories complete a firm-element continuing
education requirement addressing security futures before they conducted
any security futures business. NASD instituted this continuing
education requirement to ensure that registered personnel, who may not
be familiar with risks, trading characteristics, terms and nomenclature
of these products, or the fact that they are subject to the joint
jurisdiction of the SEC and the Commodity Futures Trading Commission,
receive the necessary training.
NASD initially considered replacing the firm-element continuing
education requirement with revised qualification examinations for these
categories that addressed security futures. However, there are no
revision plans at present. Accordingly, NASD intends to continue to
require eligible registrants to complete the mandated continuing
education requirement before engaging in any security futures business.
Thus, NASD proposes to amend NASD Rule 1022 (Categories of Principal
Registration) and NASD Rule 1032 (Categories of Representative
Registration) to change the date by which eligible registrants must
complete the firm-element continuing education requirement to engage in
a security futures business from December 31, 2006 to December 31,
2009.
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\5\ which requires, among
other things, that NASD 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. The proposed rule change is necessary to continue to
allow eligible registrants to complete a firm-element continuing
education that will qualify them to engage in a security futures
business.
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\5\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASD 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.
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.
[[Page 62499]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act and Rule
19b-4(f)(6) thereunder.\6\
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\6\ 17 CFR 240.19b-4(f)(6).
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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 furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number NASD-2006-118 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number NASD-2006-118. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of NASD. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-NASD-2006-118 and should be submitted on or before November 15,
2006.
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\7\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
Nancy M. Morris,
Secretary.
[FR Doc. E6-17844 Filed 10-24-06; 8:45 am]
BILLING CODE 8011-01-P