 |
The qualification examination programs for the General
Securities Sales Supervisor (Series 9/10) and Limited
Principal-Registered Options (Series 4) were revised recently by the
NYSE, other self-regulatory organizations (“SROs”), and a committee
composed of industry representatives. The changes incorporate
amendments to relevant SEC and/or SRO laws, rules and regulations
covered by the examinations, such as: the SEC’s new Regulation SHO,
which provides for significant changes to SEC and NYSE short sale
rules, Regulation S-P, MSRB Rules G-37/G-38, SRO research analyst
rules1, anti-money laundering rules2 and the
introduction of new securities products including, but not limited
to: municipal fund securities (e.g., 529 college savings plans), and
exchange traded funds. The Series 9/10 and Series 4 content
outlines, as well as the qualification exams, have been revised to
reflect the new content coverage. The
qualification examination changes will be implemented on November
30, 2005 and revised examination study outlines are available for
download via the Regulation page on the NYSE website at
http://www.nyseregulation.com.
Background:
Pursuant to Section 6(c)(3)B(i) of the Securities
Exchange Act of 19343, the Exchange is required to
prescribe standards for training, experience, and competence for
persons associated with NYSE members and member organizations.
The NYSE develops
and maintains a number of qualification examinations, including the
Series 7 (General Securities Registered Representative Qualification
Examination), the Series 14 (Compliance Official Qualification
Examination) and Series 16 (Supervisory Analyst Qualification
Examination), that are designed to establish that persons associated
with NYSE members have attained specific levels of competence and
knowledge. The NYSE periodically reviews the content of its
examinations to determine whether revisions are necessary or
appropriate in view of changes pertaining to the subject matter
covered by the examinations. Certain other examination programs,
including but not limited to the Series 9/10 and Series 4, are
developed and maintained by the NYSE jointly with other SROs
including the American Stock Exchange, LLC, the Chicago Board
Options Exchange, Inc., the Municipal Securities Rulemaking Board,
and the NASD.
Series 9/10-
General Securities Sales Supervisor:
NYSE Rule 342(d)(“Offices—Approval, Supervision and
Control”) requires that qualified persons acceptable to the Exchange
shall be in charge of: (1) any office of a member or member
organization, (2) any regional or other group of offices, (3) any
sales department or activity. Rule 342.13 further states that any
member, allied member or employee who is a candidate for such
supervisory functions must have a creditable three-year record as a
registered representative or equivalent experience, and must pass
the General Securities Sales Supervisor Qualification Examination
(Series 9/10) or another examination acceptable to the Exchange,
which demonstrates competency relevant to assigned responsibilities.
The Series 9/10 is an
industry-wide exam that is intended to test a candidate’s knowledge
of securities industry rules and certain statutory provisions
applicable to the supervision of sales activities conducted at a
branch office. The Series 9/10 does NOT qualify a candidate to
supervise functions other than sales. The total number of questions
on the Series 9/10 remains at 200.
Series 4 Limited Principal-Registered
Options:
NYSE Rule 720
(“Registration of Options Principals”) states that no member
organization shall transact any business with the public in options
contracts unless those persons engaged in the management of the
member organization’s business pertaining to options contracts are
registered with and approved by the Exchange as Options Principals.
(No individual member shall transact any business directly with the
public in options contracts unless he is registered with and
approved by the Exchange as an Options Principal.) In connection
with their registration, Options Principals shall successfully
complete an examination prescribed by the
Exchange.
The Series 4 exam is
intended to test a candidate’s knowledge of rules and statutory
provisions applicable to the supervisory management of a firm’s
options personnel and options accounts. The total number of
questions on the Series 4 exam remains at 125 questions.
Questions
regarding this information memo may be addressed to: Tina
Freilicher, Director of Testing Standards at 212-656-2741, Chun Liu,
Senior Testing and Evaluation Specialist at 212-656-5761, or
Patricia Monterosso, Senior Testing and Evaluation Specialist at
212-656-4376. |
| _______________________________________ |
 |
Donald
van Weezel
|
|
Vice
President
|
|
Member
Firm Regulation
|
| |
|
|
|
| |
|
