NASD Notice to Members 98-016 - February 1998

SEC Approves New Qualification Examination for Government Securities Representatives (Series 72) and New Registration Requirements for Registered Options Representatives (Series 42)

Executive Summary

On August 25, 1997, the Securities and Exchange Commission (SEC) approved amendments to the National Association of Securities Dealers, Inc. (NASD®) Rules regulating qualifications of government securities representatives. As of April 1, 1998, the effective date of the rule, registered representatives will be required to pass a qualification examination in order to sell or otherwise engage in government securities activities. A new NASD qualification examination, the Government Securities Limited Representative Examination (Series 72), will be available on April 1, 1998, and will provide an alternative to the General Securities Registered Representative Examination (Series 7) for qualification of individuals who function solely as government securities representatives. The rule change approved by the SEC also conforms to the registration requirements of the existing Registered Options Representative (Series 42) category to take into consideration the new qualification requirements.