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Regulatory Notice 09-50 from FINRA
SEC Approval and Effective Date for New Consolidated FINRA Rules; Effective Date (FINRA Rule 2320): October 19, 2009; Effective Date (Repeal of Incorporated NYSE Rules 134 and 440I): August 17, 2009
Executive Summary
Following the consolidation of NASD and the member regulation, enforcement and arbitration functions of NYSE Regulation into FINRA, FINRA established a process to develop a new consolidated rulebook (Consolidated FINRA Rulebook), which FINRA has discussed in previous Information Notices. FINRA is proposing new consolidated rules in phases for approval by the SEC as part of the Consolidated FINRA Rulebook. In June and July 2009, the SEC approved two rule filings relating to the Consolidated FINRA Rulebook. New FINRA Rule 2320 will take effect on October 19, 2009. The repeal of Incorporated NYSE Rules 134 and 440I will take effect on August 17, 2009.
Questions regarding this Notice should be directed to:
Kosha Dalal, Associate Vice President and Associate General Counsel, Office of General Counsel (OGC), at (202) 728-6903 (regarding the repeal of Incorporated NYSE Rules 134 and 440I); or
Stan Macel, Assistant General Counsel, OGC, at (202) 728-8056 (regarding FINRA Rule 2320).
View Full Notice PDF 75 KB
Excerpts From FINRA's Site:
Created in July 2007 through the consolidation of NASD and the member regulation, enforcement and arbitration functions of the New York Stock Exchange, FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services.
FINRA touches virtually every aspect of the securities business—from registering and educating industry participants to examining securities firms; writing rules; enforcing those rules and the federal securities laws; informing and educating the investing public; providing trade reporting and other industry utilities; and administering the largest dispute resolution forum for investors and registered firms. It also performs market regulation under contract for The NASDAQ Stock Market, the American Stock Exchange, the International Securities Exchange and the Chicago Climate Exchange
FINRA Registration and Examination Requirements
FINRA Registration and Examination Requirements
Registered Principal - Persons associated with a member who are actively engaged in the management of the member's investment banking or securities business, including supervision, solicitation, conduct of business, or the training of persons associated with a member for any of these functions are designated as principals. Such persons include sole proprietors, officers, partners, managers of offices of supervisory jurisdiction, and directors of corporations.
General Securities Sales Supervisor - (Series 9 and 10) - 200 multiple choice questions. The testing time is 1 hour and 30 minutes for the Series 9, which contains 55 options questions. Four (4) hours are allowed for the Series 10, which has 145 questions covering FINRA, New York Stock Exchange, Municipal Securities Rule Board, and Securities and Exchange Commission rules. This registration is appropriate for individuals required to register as principals to supervise sales activities in corporate, municipal, and options securities, investment company products, variable contracts, and direct participation programs. In addition to branch office managers, regional and national sales managers may also register in this capacity.
General Securities Principal - (Series 24) - 150 multiple choice questions; 3 hours and 30 minutes testing time. This examination qualifies individuals required to register as general securities principals in order to manage or supervise the member's investment banking or securities business for corporate securities, direct participation programs, and investment company products/variable contracts. The Series 24 does not qualify an individual to function as a:
- Registered Options Principal
- General Securities Sales Supervisor for Options and Municipal Securities
- Municipal Securities Principal
- Municipal Fund Securities Principal
- Financial and Operations Principal
- Introducing Broker/Dealer Financial and Operations Principal
Investment Company Products/Variable Contracts Limited Principal - (Series 26) - 110 multiple choice questions; 2 hours and 30 minutes testing time. This examination qualifies an individual who will function as a principal for the solicitation, purchase, and/or sale of redeemable securities of companies registered pursuant to the Investment Company Act of 1940; securities of closed-end companies registered pursuant to the Investment Company Act of 1940 during the period of original distribution only; and variable contracts and insurance premium funding programs and other contracts issued by an insurance company.
Registered Representative - Persons associated with a member, including assistant officers other than principals, who are engaged in the investment banking or securities business for the member including the functions of supervision, solicitation, or conduct of business in securities or who are engaged in the training of persons associated with a member for any of these functions, are designated as representatives.
Investment Company Products/Variable Contracts Limited Representative - (Series 6) - 100 multiple choice questions; 2 hours and 15 minutes testing time. See description of products covered by this registration under the Series 26 description.
General Securities Representative - (Series 7) - 250 multiple choice questions - administered in two parts of 125 questions each; 3 hours testing time for each part. This registration qualifies a candidate for the solicitation, purchase, and/or sale of all securities products, including corporate securities, municipal securities, municipal fund securities, options, direct participation programs, investment company products, and variable contracts.
Associated persons registered and in good standing with the Financial Services Authority (FSA) in the United Kingdom, or one of the Canadian securities regulatory organizations, would be eligible to take an abbreviated form of the Series 7 examination. The following examinations would be acceptable:
The following individuals shall be are qualified to be registered as General Securities Representatives:
- Any person who was registered as a Representative prior to September 1, 1974.
- Any person who applied for registration as a Representative prior to September 1, 1974 and became registered as a Representative prior to April 1, 1975 by passing the Series 1 (Qualification Exam for Representatives).
- A person who was registered as a Registered Representative after September 1, 1974, by passing the Series 7 (General Securities Representative Examination).
Equity Trader Limited Representative - (Series 55) - 100 multiple choice questions; 3 hours testing time. Registered representatives in this category may trade equity and convertible debt securities on a principal or agency basis. The Series 7 (including the foreign modules) or the Series 62 is the prerequisite to the Series 55.
Corporate Securities Limited Representative - (Series 62) - 115 multiple choice questions; 2 hours and 30 minutes testing time. This examination qualifies an individual as a representative for the sale of public offerings and/or private placements of corporate stocks, corporate bonds, rights, warrants, real estate investment trusts, collateralized mortgage obligations, and securities of closed-end companies registered pursuant to the Investment Company Act of 1940, repos and certificates of accrual on corporate securities; securities traders; mergers and acquisitions; venture capital; corporate financing; ETFs, and hedge funds.
Other Examinations Administered by FINRA
Uniform Securities Agent State Law Examination - (Series 63) (NASAA) - 60 multiple choice questions; 1 hour and 15 minutes testing time. The Series 63 is designed to qualify candidates as securities agents. The examination covers the principles of state securities regulation reflected in the Uniform Securities Act.
Uniform Investment Adviser Law Examination - (Series 65) (NASAA) - 130 multiple choice questions; 3 hours testing time. The Series 65 is designed to qualify candidates as investment adviser representatives.
Uniform Combined State Law Examination - (Series 66) (NASAA) - 100 multiple choice questions; 2 hours and 30 minutes testing time. The Series 66 is designed to qualify candidates as both securities agents and investment adviser representatives. The Series 7 is a corequisite exam that needs to be successfully completed in addition to the Series 66 exam before a candidate can register with a state.
FINRA Financial Industry Regulatory Authority and Series 7, series 6 NASD Securities licensing product series for investment, financial services, stocks and bonds for stockbroker training
The Financial Industry Regulatory Authority (FINRA), is the largest non-governmental regulator for all securities firms doing business in the United States. All told, FINRA oversees nearly 5,000 brokerage firms, about 172,000 branch offices and approximately 665,000 registered securities representatives.
FINRA Financial Industry Regulatory Authority
FINRA Financial Industry Regulatory Authority and Series 7, series 6 NASD Securities licensing product series for investment, financial services, stocks and bonds for stockbroker training
