# Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing of a Proposed Rule Change Relating to Revisions to the General Securities Registered Representative (Series 7) Examination, and the Corresponding Specifications and Content Outline > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-26060 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** October 20, 1994 ## Text SECURITIES AND EXCHANGE COMMISSION [Release No. 34-34843; File No. SR-Phlx-94-50] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing of a Proposed Rule Change Relating to Revisions to the General Securities Registered Representative (Series 7) Examination, and the Corresponding Specifications and Content Outline October 14, 1994. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on October 3, 1994, the Philadelphia Stock Exchange, Inc. (``Phlx'' 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 primarily by the Phlx. 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) (1988). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance or the Proposed Rule Change The Phlx proposes, in conjunction with the other self-regulatory organizations (``SROs''), to use a revised version of the General Securities Registered Representative (``Series 7'') Examination, the corresponding specifications and content outline.\2\ The Phlx would adopt the amended Series 7, as well as the corresponding specifications and content outline. --------------------------------------------------------------------------- \2\For a detailed description of the revised Series 7 examination, see Securities Exchange Act Release Nos. 34340 (July 8, 1994), 59 FR 35959 [File No. SR-NYSE-94-27] (notice of filing of proposed rule change relating to the revision of the content outline for the Series 7 Examination); 34341 (July 8, 1994), 59 FR 35960 [File No. SR-NYSE-94-26] (notice of proposed rule change relating to the revision of examination specifications for the Series 7 Examination). --------------------------------------------------------------------------- II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Phlx included statements concerning the purpose of and basis for the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Phlx 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 The Phlx proposes to use the Series 7 as amended, as the appropriate qualification examination for persons seeking registration as general securities representatives. The Series 7 examination is generally required under rules of the self-regulatory organizations (``SROs'') for persons who are engaged in the solicitation, purchase and/or sale of securities for the accounts of customers. The purpose of the Series 7 examination is to ensure that registered representatives have the basic knowledge necessary to preform their functions and responsibilities. The Series 7 examination specifications detail the areas covered by the examination and break down the number of examination questions culled from each area. Revision of the Series 7 examination, specifications and content outline was initiated in April 1993 by an industry committee of SROs and representatives from broker-dealers in order to update the examination in view of changes in the securities industry, including changes in relevant rules and regulations, the development of new securities products, and changes in the job of registered representatives as firms offer an increasingly wide range of financial services.\3\ The examination specifications for the Series 7 have not been revised since 1986. --------------------------------------------------------------------------- \3\SROs on the committee include the New York Stock Exchange, American Stock Exchange, Chicago Board Options Exchange, Municipal Securities Rulemaking Board, National Association of Securities Dealers and Philadelphia Stock Exchange. Broker-dealer representatives include branch office managers, compliance officers, training personnel and registered representatives. --------------------------------------------------------------------------- The industry committee updated the existing statements of the critical functions of registered representatives to ensure current relevance and appropriateness and drafted statements of tasks expected to be performed by entry-level registered representatives, and conformed the existing content outline to the task statements. Under the proposed rule change, the total number of questions in the Series 7 examination will remain 250, and the revised examination will cover all financial product areas covered on the present Series 7 examination as well as several new products, including collateralized mortgage obligations (``CMOs''), long term equity anticipation securities (``LEAPS'') and CAPS, with reduced emphasis on direct participation programs. The other SRO participants will also file the revised specifications for approval by the Commission. The Phlx intends to commence use of the revised examination, specifications and content outline jointly with the other SROs, upon approval of the proposed rule changes of all of the other SRO participants. The statutory basis for the Series 7 examination lies in Section 6(c)(3)(B) of the Act. Under that Section, it is the Exchange's responsibility to prescribe standards of training, experience and competence for persons associated with Exchange members and member organizations. Pursuant to this statutory obligation, the Exchange has developed examinations that are administered to establish that persons associated with Exchange members and member organizations have attained specified levels of competence and knowledge. B. Self-Regulatory Organization's Statement on Burden on Competition The Phlx believes that the proposal does 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 Within thirty-five days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to ninety days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve the proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. 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 Section, 450 Fifth Street, N.W., Washington, D.C. 20549. Copies of such filing will also be available for inspection and copying at the principal office of the Phlx. All submissions should refer to File No. SR-Phlx-94-50 and should be submitted by November 10, 1994. For the Commission by the Division of Market Regulation, pursuant to delegated authority.\4\ --------------------------------------------------------------------------- \4\17 CFR 200.30-3(a)(12) (1994). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 94-26060 Filed 10-19-94; 8:45 am] BILLING CODE 8010-01-M --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-26060. Public record. Not legal advice.