Solomon Exam Prep previously reported FINRA’s announcement that its continuing education (CE) rules would be undergoing significant changes. One of the changes is the creation of the Maintaining Qualification Program (MQP), which went into effect on March 15, 2022. Other important changes to the Regulatory Element and Firm Element components of FINRA CE are set to go into effect on January 1, 2023.
Regulatory Element CE Changes
Regulatory Element CE is intended to keep registered persons up to date on regulatory requirements and industry standards. Currently, registered individuals must complete Regulatory Element CE every three years. Beginning in 2023, this will become an annual requirement to be completed by December 31 of each year. Additionally, individuals will have to complete CE content that is related to each registration category they hold.
If an individual does not complete Regulatory Element CE by Dec. 31, their status will show as “CE inactive.” However, FINRA reserves the right to extend the deadline if “good cause” is shown for not completing CE.
The initial annual Regulatory Element completion date will depend on an individual’s registration status. See FINRA’s Regulatory Notice 21-41 for more details.
Firm Element CE Changes
Every FINRA member firm is responsible for providing annual Firm Element CE to its registered persons. This CE is related to the firm’s securities products, services and strategies, and policies. Starting on January 1, 2023, this annual requirement will include all registered individuals, not just “covered registered persons.” Covered registered persons are registered persons who work with customers, who are registered as research analysts, and individuals who supervise such persons.
In addition, training related to the anti-money laundering compliance program under Rule 3310(e) and annual compliance meeting under Rule 3110(a)(7) will now be able to count towards an individual’s Firm Element CE requirement.
For additional reporting on FINRA’s new CE rules and to learn what Solomon Exam Prep President & Co-founder, Jeremy Solomon, has to say on the topic, check out this ThinkAdvisor article.
For more information about FINRA CE changes, see Regulatory Notice 21-41.