Solomon Exam Prep Partners with Garrett College
We're pleased to announce that Garrett College is joining with Solomon Exam Prep to offer securities licensing exam training classes and materials to the Garrett College community.
As part of their Continuing Education and Workforce Development program, Garrett College offers a wide variety of noncredit educational opportunities to serve the students as well as the Garrett County community, local businesses, agencies, and groups. This new partnership with Solomon Exam Prep will expand their offerings into the realm of financial services training.
Solomon Exam Prep has helped thousands of financial professionals pass their FINRA and NASAA licensing exams, and we look forward to sharing our expertise with the Garrett College community. Whether they are new to financial services or seasoned professionals looking to expand their businesses and needing to pass the necessary exams, the Solomon Exam Prep training system addresses the learning needs of all kinds of test takers.
Welcome Garrett College Continuing Education students!
Exam Alert: FINRA recommends heightened supervision for complex products
On January 17, 2012, FINRA highlighted the need for firms to have adequate supervisory and compliance programs in place in order for registered representatives to recommend complex products. FINRA identified several characteristics that may cause a product to be considered "complex," such as embedded derivatives or contingencies. The notice states that agents should determine suitability, consider the customer's financial sophistication, discuss the products with the customer, and consider alternative investments that could meet the customer's goals. The firm should also review the performance of the products and train the agents about the products.
Source: FINRA Regulatory Notice 12-03
This alert applies to the Series 6, Series 7, Series 24, Series 26, Series 55, Series 62, Series 79, Series 82, Series 99, Series 63, Series 65, and Series 66.
Exam Alert: Disclosures required by the Department of Labor do not need to be filed with FINRA
On October 20, 2010, the U.S. Department of Labor (DOL) adopted a rule that requires retirement plan administrators to show participants in participant-directed individual account plans (e.g., 401(k) plans) information on alternative investment options. On January 13, 2012, FINRA stated that communications that contain only the information required by the DOL rule do not need to be filed with FINRA. Note that communications that have additional information not required by the DOL rule must be filed with FINRA.
Source: FINRA Regulatory Notice 12-02
This alert applies to the Series 62, Series 6, Series 26, Series 24, Series 7, and Series 82.
Exam Alert: FINRA alters short interest reporting requirements
Effective December 15, 2011, FINRA has modified the rules for submitting short interest data. Specifically, when reporting such data for a security that is primarily listed on the BATS Exchange, the new exchange/market code "H" is used.
Source: FINRA Regulatory Notice 11-55
This alert applies to the Series 24.
Exam Alert: FINRA modifies rules to protect certain documents from discovery
The SEC has approved a change to FINRA Rule 9251, effective December 2, 2011. This change to the rule explicitly protects from discovery documents that federal law prohibits FINRA from disclosing. Previously, FINRA's Enforcement and Market Regulation Departments needed to seek a "good cause" determination to withhold the documents - this is no longer the case.
Source: FINRA Regulatory Notice 11-50
This alert applies to the Series 24, the Series 62, and the Series 82.
Exam Alert: New passing score for the Series 99 is 68%
First off, congratulations to all of our students who have passed the Series 99: FINRA Operations Professional Exam! We know many of you were anxious about this brand new exam (and brand new experience with standardized testing for many of you). But your hard work paid off, so well done!
As our students let us know they've passed, they've also told us that the current passing score for the Series 99 is 68%. Don't let that low score fool you - this exam will still require hard work and diligent studying to pass. We continue to monitor this brand new exam and will keep you updated to any changes to the passing score or to the exam. Be sure to subscribe to our Blog and regularly check our Exam FAQs and Exam Updates pages to keep current with exam information!
Exam Alert: SEC modifies accredited investor standard based on Dodd-Frank
The SEC has changed its net worth standards for accredited investors to conform to provisions of the Dodd-Frank Act. The change stipulates that the value of an investor's primary residence may not be used when calculating net worth to determine whether the person is an accredited investor on the basis of having a net worth of over $1 million. The change will be effective 60 days after publication in the Federal Register.
An accredited investor is allowed to participate in certain unregistered limited private offerings. This SEC website shows the standards that determine who qualifies as an accredited investor.
Source: SEC Release 2011-274
This alert applies to the Series 6, Series 7, Series 24, Series 62, Series 79, and Series 82.
Exam Alert: FINRA changes guidelines for books and records rules
On December 5, 2011, new FINRA rules regarding books and records took effect. These changes affect recordkeeping time limits, customer account information, customer complaints, order information and arbitration agreements.
Recordkeeping - the default time limit for keeping records is six years. This means that if FINRA requires a firm to keep a record but does not specify how long the record must be kept, it must be kept for six years. If a change is made to an account and documentation is required to make that change, the documentation must be preserved for six years after the change. If the account is closed, the firm must maintain the most current information about the account for six years after the account closes.
Account information - When opening an account, the signature of the registered representative opening the account is no longer needed. Instead, FINRA requires the signatures of all persons who are responsible for the account. Additionally, discretionary accounts no longer require the age of the person with discretionary authorization. Instead, an acknowledgment that said person is over 18-years-old, without a specific age, is sufficient.
Customer complaints - Firms must now keep records of customer complaints for four years, not three.
Order information - Previously, firms were allowed to accept block orders from an investment adviser for customer accounts if the firm received the specific account names and designations by the end of the business day. Now, firms are allowed to accept orders from an investment adviser for customer accounts if the order involves more than one customer and the firm receives the specific account names and designations by noon of the next business day.
Pre-dispute arbitration agreements - The disclosure language for pre-dispute arbitration agreements has been updated to include that arbitrators are required to explain their decision in eligible cases if all parties involved file a joint request 20 days before the first scheduled hearing date.
To read Regulatory Notice 11-19 where FINRA outlines these changes in more detail, please click here. Additionally, we have included a summary of these changes on our Exam Updates page, where we include updates to the exams on a regular basis. You may want to brush up on these rules if you're taking the Series 7, 6, 24, 26, 62, 99 and 79!
Exam Alert: SEC raises dollar thresholds for “qualified clients”
Effective September 19, 2011, the SEC has raised the thresholds an investor must meet to be considered a qualified client on the basis of assets under management or net worth. The thresholds are now $1 million in assets under management (previously $750,000) and $2 million in net worth (previously $1.5 million). A qualified client may compensate an investment adviser based on performance.
Source: SEC Release 3236
Prior related alert: SEC proposes rule to change standards for "qualified clients"
This alert is relevant to the Series 63, Series 65, Series 66, and Series 24.