The Financial Industry Regulatory Authority on Wednesday adopted changes to its continuing education (CE) and registration rules, which include, among other measures, requiring those registered with FINRA to complete continuing education requirements yearly instead of every three years.
As FINRA states in Regulatory Notice 21-41, the amendments to Rules 1210 and 1240: (1) provide eligible individuals who terminate any of their representative or principal registration categories the option of maintaining their qualification for any terminated registration categories by completing annual CE through a new program, the Maintaining Qualifications Program (MQP); (2) require registered persons to complete CE Regulatory Element annually for each representative or principal registration category that they hold; and (3) expressly allow firms to consider other required training toward satisfying an individual's annual CE Firm Element and extend the Firm Element requirement to all registered persons.
The changes relating to the MQP and the Financial Services Affiliate Waiver Program will become effective March 15, 2022.
All other changes, including the changes relating to the Regulatory Element, Firm Element and the two-year qualification period, will become effective Jan. 1, 2023, FINRA said.
Regulatory Element Changes
Beginning on Jan. 1, 2023, registered persons must now complete the Regulatory Element, which focuses on regulatory requirements and industry standards, annually by Dec. 31 of each year that they are registered.
In addition, the amended rules require registered persons to complete Regulatory Element content for each representative or principal registration category that they hold.
Along with this change, FINRA has developed tailored Regulatory Element content that is specific to each registration category, the regulator explained.
"Further, to provide firms with sufficient time to review the Regulatory Element topics for each upcoming year, FINRA and the CE Council will publish the topics" by no later than Oct. 1 of the prior year, FINRA said.
