RESCISSION OF SERIES 12 EXAMINATION
 

Information Memo  07-32  is available for viewing or printing with Adobe Acrobat
 
Number 07-32 04/11/2007
 
ATTENTION:   COMPLIANCE, LEGAL, AND REGISTRATION DEPARTMENTS
 
TO:   ALL MEMBER ORGANIZATIONS
 
SUBJECT:   RESCISSION OF SERIES 12 EXAMINATION
 



This Information Memo is to advise member organizations of the forthcoming rescission of the Securities Manager (“Series 12”) qualification examination.1

Background


NYSE Rule 342 (“Offices - Approval, Supervision and Control”) requires that member organizations be appropriately supervised. Rule 342.13 prescribes specific qualification standards for supervisors.2 It requires that a Branch Office Manager (“BOM”) pass the General Securities Sales Supervisor (“Series 9/10”) examination or another examination acceptable to the Exchange. Alternatives to the Series 9/10 examination include the Securities Manager (“Series 12”) examination and the General Securities Principal Examination (“Series 24”).3

The Series 12 examination qualifies a candidate as a Securities Manager (“SM”) and has generally been utilized by individuals employed by a broker/dealer whose business is limited solely to equity and non-municipal fixed income securities.

Rescission of the Series 12 Examination


The Series 12 examination4 is being rescinded primarily because its content is now covered by the Series 10 examination, which is the general securities portion of the Series 9/10 examination. The Series 12 consists of 100 multiple-choice questions covering the following four general areas of knowledge, which are also addressed in the Series 10: Sales Supervision; Account Supervision; Compliance, Recordkeeping and Financial Responsibility; and Regulations Affecting the Operation of Securities Markets. The primary difference between the Series 12 and the Series 10 is that the Series 12 does not cover municipal securities. Thus, candidates seeking a BOM and/or SM designation may qualify via the Series 10 examination (or the Series 24 examination) in lieu of the Series 12.

Candidates who request to take the Series 12 prior to April 23, 2007 will be registered to take the Series 12. If a candidate requests an SM registration on or after that date, they will automatically be registered to take the Series 10 examination. Individuals wishing to take the Series 12 examination must make the appropriate request through the Central Registration Depository on or before Friday, April 20, 2007. Individuals who have made an appropriate request by April 20, 2007 will have 120 days to take the Series 12 examination.

Questions concerning this information memo may be directed to Peggy Germino at 212-656-8450.

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Grace B. Vogel
Executive Vice President
Member Firm Regulation


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1 The NYSE will shortly be submitting a 19b-4 filing with the Securities and Exchange Commission, for immediate effectiveness, to rescind the Series 12 examination.
2 See also NYSE Rule 345 (Employees - Registration, Approval, Records), which requires supervisors of registered representatives to be registered. In addition, Rule 345.15 requires candidates for registration to meet training requirements and pass a qualification examination.
3 The Series 24 examination is only recognized by the Exchange if taken and passed on or after July 2, 2001. Further, unlike the Series 9/10 examination (which qualifies a person to supervise options and municipal business as well as equities business), the Series 24 examination only qualifies a person to supervise equities business. A BOM may qualify to supervise options and municipal securities business by passing the Registered Options Principal examination (“Series 4”) and the Municipal Securities Principal examination (“Series 53”), respectively. See also Information Memo 02-51 dated November 12, 2002.
4 When originally introduced in 1964, the Series 12 was the standard BOM Examination. The BOM Examination was administered in this form until April 1984 when it was changed to the General Securities Sales Supervisor Examination (“Series 8”), which was created from the Series 12, Series 24, Series 4 and Series 53 Examinations. The two-part Series 8 later split into the Series 9/10 with the Web CRD conversion in August 1999. See also Information Memo 81-57 which announced the approval of the Series 8 examination.