Proposal by FINRA would allow representatives to reregister with $100 fee

On Behalf of | Oct 14, 2021 | FINRA Compliance

The Financial Industry Regulatory Authority recently approved enhancements to its continuing education (CE) program, according to Investment News.

Amendments to FINRA rules will allow individuals who terminate their registrations to re-register after an extended period without retaking a qualification exam provided they maintain their CE requirements. Last month, FINRA’s Board of Governors established a $100 annual fee for this new option that would enable representatives to remain qualified for five years in the financial industry. The proposal must still be approved by the Securities and Exchange Commission. Under previous regulations, representatives would have to retake their qualifying exams after a two-year absence from the industry.

FINRA said the reforms to the continuing education system were designed to give representatives more flexibility to deal with events in their careers and personal lives and still be able to return to the industry without taking qualifying exams again. “The changes support FINRA’s efforts to promote diversity and inclusion in the securities industry by attracting and retaining a broader and more diverse group of professionals,” said FINRA’s Chief Executive, Robert W. Cook.

The $100 fee was approved at the FINRA Board of Governors meeting on September 23-24, where the Board also reaffirmed the organization’s Financial Guiding Principles.

Those who choose to work in the financial services industry face a range of complex rules and regulations. The Chicago securities law attorneys at Lewitas Hyman have years of experience advising financial advisors and firms on various employment issues. For more information about our financial services employment practice, call us at (312) 291-4600 or submit our online contact form.

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