What FINRA CE Changes Are Coming in 2023?

Important changes to the Regulatory Element and Firm Element components of FINRA CE are set to go into effect on January 1, 2023. Continue reading

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.

More Blog Posts

Online Testing Now Available for the Series 3 Exam

For those planning to sit for the National Commodity Futures Exam, or Series 3, FINRA is now offering candidates the option to take the exam online via Prometric’s ProProctor platform. Continue reading

For those planning to sit for the National Commodity Futures Exam, or Series 3, FINRA is now offering candidates the option to take the exam online via Prometric’s ProProctor platform. 

Since mid-2020, FINRA has offered online delivery of certain securities exams via the ProProctor remote service, allowing you to choose where and when to take your exam.

The ProProctor platform features an easy-to-use interface and 24/7 proctor support for a smooth test-taking experience. But it’s a good idea to be aware of the technical and security requirements before sitting for your exam remotely. 

In addition to the Series 3 and other NFA exams, these exams can be taken online: the Securities Industry Essentials (SIE), Series 6, Series 7, Series 63, Series 65, and Series 66 exams. 

For detailed information about taking exams online, including technical and procedural specifications, visit FINRA’s information page: https://www.finra.org/registration-exams-ce/qualification-exams/testonline  

And to read a first-hand description of the remote testing experience, see this blog post from August 13, 2020: https://solomonexamprep.com/news/finra/know-what-to-expect-testing-online-with-proproctor-from-prometric/

If You’re a Principal or Operations Professional, Your FINRA Exam Deadline May Be Extended

If you’re a newly promoted principal at your firm, FINRA may have just delivered you some good news. Continue reading

If you’re a newly promoted principal at your firm, FINRA may have just delivered you some good news.

In response to current events, FINRA has adopted a temporary rule change giving many new principals until December 31st to complete their FINRA exams.

To qualify for the extension, the principal must have been promoted from representative by her firm before September 3rd.

Among the principals included in the extension are General Securities Principals (Series 24), Financial and Operations Principals (Series 27 or 28), Investment Company/Variable Contract Limited Principals (Series 26), and Compliance Officers (Series 14).

The extension also applies to one rep-level license. Operations Professionals (Series 99) hired before September 3rd also have until December 31st to pass their exams.

The Solomon Exam Prep team is always on the lookout for how current developments affect the securities industry. For more updates from our Industry News blog, use the subscribe form on this page.

Earning Your Securities License May Now Make You an Accredited Investor

On Wednesday, the SEC finalized rule changes that will broaden its definition of “accredited investor” to encompass industry professionals who have earned certain FINRA licenses. Continue reading

On Wednesday, the SEC finalized rule changes that will broaden its definition of “accredited investor” to encompass industry professionals who have earned certain FINRA licenses.
 
An accredited investor is an investor considered sophisticated enough to weigh an investment’s merits independently. Accredited investors have easier access to certain types of investments, such as private equity offerings.
 
Under the newly expanded definition, General Securities Representatives (Series 7), Private Securities Offerings Representatives (Series 82), and Licensed Investment Adviser Representatives (Series 65) are now accredited investors. The SEC indicated that it may add other FINRA licenses later. Note that passing the exam by itself does not make you an accredited investor – you must have and maintain the license.
 
The rule change also allows “spousal equivalents” such as domestic partners to qualify as accredited investors based on the total income and assets of both partners, a benefit previously limited to couples who are legally married. Native American tribes and foreign governments now qualify as accredited investors as well.
 
The Solomon Exam Prep team is always on the lookout for how current developments affect the securities industry. For more updates from our Industry News blog, use the subscribe form on this page.

New FINRA Guidance on Entertainment Expenses for Virtual Meetings

The use of virtual meetings and video conferencing has exploded in recent months. FINRA has responded with new guidance about how its limits on gifts and entertainment expenses apply in a world where business meetings often don’t take place in person.

When a firm hosts a traditional, in-person meeting with institutional investors or other broker-dealers, reasonable expenses associated with these meetings don’t count toward FINRA’s $100 limit on gifts. A common example is the refreshments provided to those in attendance.

But what if you’re courting a new institutional investor through a virtual meeting? Are you allowed to have food and beverages delivered to those attending the meeting without worrying about the $100 limit on gifts? FINRA says yes, as long as the expenses are reasonable. According to FINRA:

[W]here a member firm’s associated persons personally host an interactive virtual business entertainment event or meeting, FINRA would view the associated persons’ provision of reasonable amounts of food and beverage … during that virtual business entertainment or meeting as not being subject to the $100 gift limit.

In order to keep your virtual meetings in compliance with this guidance, the refreshments:

  • Cannot be so expensive “as to raise any question of propriety”
  • Must be intended to be consumed at the meeting, by the attendees
  • Cannot be conditioned on meeting a sales goal (for example, when meeting with associated persons of another broker-dealer, you can’t provide refreshments selectively to the high sellers)
  • Cannot be used as a cover for providing something that is actually a gift (for example, a bottle of champagne meant for the attendee to take home)

The Solomon Exam Prep team is always on the lookout for how current developments affect the securities industry. For more updates from our Industry News blog, use the subscribe form on this page.

Solomon’s Industry News: June 2016 Edition

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Continue reading

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Every month we will send out industry updates from the past month, so you can stay current and up-to-date on everything that is happening here at Solomon Exam Prep and in the industry.

Check out this month’s edition here: Solomon’s Industry News – June 2016.

To be added to our monthly mailing list, please click here.

Solomon’s Industry News: May 2016 Edition

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Continue reading

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Every month we will send out industry updates from the past month, so you can stay current and up-to-date on everything that is happening here at Solomon Exam Prep and in the industry.

Check out this month’s edition here: Solomon’s Industry News – May 2016.

To be added to our monthly mailing list, please click here.

Solomon’s Industry News: March 2016 Edition

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Continue reading

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Every month we will send out industry updates from the past month, so you can stay current and up-to-date on everything that is happening here at Solomon Exam Prep and in the industry.

Check out this month’s edition here: Solomon’s Industry News – March 2016.

To be added to our monthly mailing list, please click here.

Solomon’s Industry News: February 2016 Edition

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Continue reading

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Every month we will send out industry updates from the past month, so you can stay current and up-to-date on everything that is happening here at Solomon Exam Prep and in the industry.

Check out this month’s edition here: Solomon’s Industry News – February 2016.

To be added to our monthly mailing list, please click here.

Solomon’s Industry News: January 2016 Edition

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Continue reading

Solomon Exam Prep is happy to release this month’s edition of “Solomon’s Industry News.” Every month we will send out industry updates from the past month, so you can stay current and up-to-date on everything that is happening here at Solomon Exam Prep and in the industry.

Check out this month’s edition here: Solomon’s Industry News – January 2016.

To be added to our monthly mailing list, please click here.