Acceptability of Series 24 Examination under NYSE Rule 342.13
Qualification of Supervisors
|Referenced Rules & Notices
NASD Rule 1022
NASD Rule 1120
NYSE Rule 342
NYSE Rule 345A
Qualification of Supervisors
Series 9/10 Examination
Series 24 Examination
PLEASE NOTE: The FINRA rulebook currently consists of both NASD Rules and certain NYSE Rules that FINRA has incorporated, including NYSE Rule 342. The incorporated NYSE Rules apply solely to members of FINRA that are also members of NYSE on or after July 30, 2007, referred to as "Dual Members." Dual Members also must comply with NASD Rules. Until the adoption of a consolidated rulebook, FINRA's Regulatory Notices will address both NASD and the incorporated NYSE Rules.
FINRA amended NYSE Rule 342.13 to eliminate the requirement that the General Securities Principal Examination (Series 24) be passed after July 1, 2001, in order to be recognized as an acceptable alternative to the General Securities Sales Supervisor Qualification Examination (Series 9/10) for persons whose duties do not include supervision of options or municipal securities sales activities.1
The text of the amendment is set forth in Attachment A and became effective on November 28, 2007.
Questions regarding this Notice should be directed to Erika Lazar, Senior Attorney, Office of General Counsel, at (212) 656-4591; or Michael J. Troha, Senior Staff Attorney, Sales Practice Policy, Member Regulation, at (212) 656-5639.
Background and Discussion
NYSE Rule 342 (Offices—Approval, Supervision and Control) sets forth supervisory requirements for broker-dealers that are members of both FINRA and NYSE, including a requirement in NYSE Rule 342.13 that a supervisor pass the Series 9/10 Examination. In October 2002, the NYSE amended NYSE Rule 342.13 to recognize the Series 24 Examination, if taken and passed after July 1, 2001, as an acceptable alternative to the Series 9/10 Examination for persons whose duties do not include supervision of options or municipal securities sales activities.2
FINRA amended NYSE Rule 342.13 to eliminate the July 1, 2001 "cut-off" date and recognize the Series 24 Examination, irrespective of when passed, as an alternative to the Series 9/10 Examination for persons whose duties do not include supervision of options or municipal securities sales activities.3 The amendment reflects the view that individuals who took the Series 24 Examination prior to July 1, 2001, have been subject to more harmonized regulatory standards over the last several years. In addition, these individuals have been subject to regulatory and firm element continuing education requirements that provide ongoing practical training with respect to current regulatory requirements, including NYSE Rules, applicable to their duties and responsibilities.4
1 Exchange Act Release No. 56936 (December 10, 2007); 72 FR 71467 (December 17, 2007) (File No. SR-FINRA-2007-22).
2 The Series 24 Examination does not address these activities, and thus will not serve as an alternative to the Series 9/10 Examination for those functions.
3 The NYSE adopted an identical amendment to its version of NYSE Rule 342.13. See Exchange Act Release No. 56854 (November 28, 2007); 72 FR 68613 (December 5, 2007) (File No. SR-NYSE-2007-53).
4See NASD Rule 1120 and NYSE Rule 345A.
Below is the text of the rule change. Deletions are in brackets.
Rule 342. Offices—Approval, Supervision and Control
* * * * *