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FINRA proposes rule change extending time for continuing education requirements

On Behalf of | May 6, 2024 | FINRA Compliance

The Financial Industry Regulatory Authority has proposed a rule change involving its Maintaining Qualifications Program (MQP), according to ThinkAdvisor.

FINRA established the MQP in 2022 to provide those with terminated FINRA registrations the option of maintaining their qualifications for up to five years by completing annual Continuing Education (CE) requirements.  Individuals who choose this option have a maximum of five years in which to reregister with a member firm without having to requalify by exam or having to obtain an exam waiver.

FINRA has now filed a proposal with the Securities and Exchange Commission to amend Rule 1240.01 (Eligibility of Other Persons to Participate in the Continuing Education Program Specified in Paragraph (c) of this Rule) to reopen the period by which certain participants in the MQP will be able to complete their prescribed 2022 and 2023 CE content.

Under the change, individuals enrolled in MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, shall be able to complete such content between May 22, 2024 and July 1, 2024, to be eligible to continue participating in the program.

Furthermore, any individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and May 22, 2024, will be deemed to have completed such content by July 1, 2024.

The CE requirements consist of a Regulatory Element, that provides training on regulatory developments and rule changes relevant to each registration category. and a Firm Element, to keep individuals up to date on topics related to professional responsibility and to their role, activities or responsibilities.

Last October, FINRA said that more than 900 individuals have returned to the securities industry using MQP.

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