ARTICLE
24 November 2021

FINRA Amends Continuing Education And Registration Requirements

CW
Cadwalader, Wickersham & Taft LLP

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Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
FINRA adopted amendments to rules on continuing education and registration requirements to provide accommodations for individuals with terminated registrations to maintain their qualification.
United States Finance and Banking

FINRA adopted amendments to rules on continuing education and registration requirements to provide accommodations for individuals with terminated registrations to maintain their qualification.

As previously covered, the amendments to FINRA Rule 1240 ("Continuing Education Requirements") and conforming amendments to FINRA Rule 1210 ("Registration Requirements") will:

  • give 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 continuing education ("CE") through a new program, the Maintaining Qualifications Program ("MQP");
  • require registered persons to complete the CE Regulatory Element annually for each representative or principal registration category that they hold; and
  • 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.

In related FAQs, FINRA addressed regulatory element date-related specifics, the development of firm element resources, and details of the new MQP available through the FINRA Gateway.

The changes relating to the MQP and the Financial Services Affiliate Waiver Program will go into effect on March 15, 2022. All other changes, including the changes relating to the Regulatory Element, the Firm Element and the two-year qualification period, will go into effect on January 1, 2023.

Primary Sources

  1. SR-FINRA-2021-041: FINRA Amends Rules 1210 and 1240 to Enhance the Continuing Education Program for Securities Industry Professionals
  1. FINRA FAQs: CE Transformation Frequently Asked Questions
  1. FINRA Gateway

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