Frequently Asked Questions Related to Regulatory Notice 21-41

The following frequently asked questions (FAQ) provide guidance on the amended CE rules. FINRA will publish additional operational-related FAQ on the CE webpage.

Section 1: Regulatory Element

Multiple FAQ in this section were updated May 4, 2023.

1.1 If I completed my CE Regulatory Element in 2022 based on the previous requirements, will I be required to complete annual Regulatory Element in 2023 based on the amended rules?

Yes. You must complete the prescribed 2023 Regulatory Element content by December 31, 2023.

1.2 If, under the previous requirements, I had a 120-day CE window with a July 1, 2022, end date, and I failed to complete my CE by that date, when would I have been designated as CE inactive?

You would have been designated as CE inactive after July 1, 2022. You can view your personal registration information, including CE status information, in the Financial Professional Gateway (FinPro).

1.3 If, based on the previous requirements, my 120-day CE window opened in 2022 with an end date of February 1, 2023, and I failed to complete it by that date, was I designated as CE inactive after February 1, 2023?

No. On January 1, 2023, your CE requirement was reset to run until December 31, 2023, to complete the prescribed Regulatory Element content before being designated as CE inactive. 

1.4 If my firm terminates my General Securities Principal (Series 24) registration category on August 15, 2023, but I remain registered as a General Securities Representative (Series 7) after that date, what will be the Regulatory Element due date for the General Securities Principal (Series 24) registration category if I reregister as a General Securities Principal (Series 24) on November 15, 2023, and have not completed my 2023 Regulatory Element for that registration category?

Your Regulatory Element for the General Securities Principal (Series 24) registration category would be due on December 31, 2023. This would be in addition to your prescribed 2023 Regulatory Element for the General Securities Representative (Series 7) registration category, which would also be due on December 31, 2023.

1.5 If I complete my prescribed 2023 Regulatory Element content on October 15, 2023, when is the soonest and the latest that I can take my prescribed 2024 Regulatory Element content?

Your 2024 Regulatory Element content will be available beginning on January 1, 2024, and you will have until December 31, 2024, to complete it. You should note that your firm may require you to complete the Regulatory Element by a date specified by the firm.

1.6 How long will it take to complete the annual Regulatory Element content compared to the previous Regulatory Element content?

The answer will vary depending on the individual, the number of registrations they hold and the amount of prescribed content. In general, the amount of content that you will be required to complete during three annual cycles for a particular registration category is expected to be comparable to what you were completing every three years under the previous CE Regulatory Element requirements.

In some years, there may be more required content for some registration categories depending on the volume of rule changes and regulatory issues. In addition, if you hold multiple registrations, you may be required to complete additional content compared to someone who holds a single registration because you will be required to complete content specific to each registration category that you hold. However, if you hold multiple registrations, you will not be subject to duplicative regulatory content in any given year.

The more common registration combinations will likely share much of their relevant regulatory content each year. For example, individuals registered as General Securities Representatives (Series 7) and General Securities Principals (Series 24) will receive the same content as individuals solely registered as General Securities Representatives (Series 7), supplemented with a likely smaller amount of supervisory-specific content on the same topics. The less common registration combinations may result in less topic overlap and more content overall.

1.7 How much will the annual Regulatory Element cost?

Effective January 1, 2023, the fee for the annual Regulatory Element is $18. This is a flat fee, regardless of the amount of Regulatory Element content that an individual is required to complete (i.e., an individual who holds multiple registrations will be subject to the same $18 fee as an individual who holds a single registration). This fee is assessed upon completion of the annual Regulatory Element session (i.e., completion of all courses assigned as part of the annual learning plan).

1.8 What is the format of the annual Regulatory Element?

The content is accessible online, including via smartphones and other mobile devices. Regulatory Element training is presented in a variety of instructional formats.

1.9 Whom should I contact if I have accessibility issues relating to the annual Regulatory Element?

If individuals have accessibility issues or challenges, they may contact the FINRA Support Center at (240) 386-4040.

Section 2: Firm Element

Multiple FAQ in this section were updated May 4, 2023.

2.1 What is the Firm Element content catalog and when will it become available?

FINRA is currently working on the development of a centralized Firm Element catalog that firms may optionally leverage for administering education and training for their Firm Element programs. The vision for the catalog is to include content developed by third-party training providers, FINRA and the other self-regulatory organizations (SROs) participating in the CE program. Both firms and individuals will be able to purchase content from the catalog. The catalog will be launched in phases. We are looking to launch the first phase of the catalog in the first half of 2023. We will provide more information regarding courses, pricing and how to access the catalog prior to the launch of the first phase.

2.2 Our firm currently has several permissively registered individuals consistent with Rule 1210.02. Will these individuals be required to complete Firm Element training starting in 2023?

Yes. Effective January 1, 2023, the Firm Element requirement extends to all registered persons, including individuals who solely maintain a permissive registration consistent with Rule 1210.02.

Section 3: Maintaining Qualifications Program (MQP)

Due to the Second Enrollment Period, effective March 15, 2023, multiple FAQ in this section have been revised.

3.1 My firm recently terminated my General Securities Representative (Series 7) registration, and I would like to maintain my qualifications in the MQP. How do I find out if I am eligible, and if eligible, how do I make my election to enroll in the MQP?

Visit the MQP webpage for instructions on how to check your eligibility and enroll. In general, you will need to have been registered in that registration category for at least one year immediately prior to your termination from that firm. If you have additional questions regarding your eligibility or the enrollment process, you may contact the FINRA Support Center at (240) 386-4040.

3.2 When must I complete my MQP learning plan if I enrolled during the second enrollment period?

Eligible individuals who elected to participate in the MQP during the second enrollment period (that was between March 15, 2023, and December 31, 2023) must complete any prescribed 2022 and 2023 continuing education content by March 31, 2024. Please note that if an individual also enrolled in the AG EVEP, the due date for completing content will be the Series 63 Current Validity Date noted in FinPro.

3.3 If my firm terminates one of my registration categories while I am in a CE inactive status, can I still join the MQP for that category?

Yes, provided that you have not been CE inactive for two consecutive years prior to joining the MQP and you satisfy the other eligibility conditions. Further, you have two years from the date you became CE inactive to complete the outstanding Regulatory Element; otherwise, you will be ineligible to continue in the MQP.

3.4 Further to Question 3.3, to remove the CE inactive status, can I complete any outstanding Regulatory Element content while in the MQP?

Yes. The outstanding Regulatory Element content will be accessible through your FinPro account.

3.5  If I enroll in the MQP, how do I know if I have any outstanding Regulatory Element content to complete and what is the due date for completing it?

In order to determine whether you have any outstanding Regulatory Element content and to complete your prescribed content, you will need to review your MQP CE information by navigating to the Continuing Ed section in FinPro. You must complete any prescribed content before the due date specified in FinPro.

3.6 What are the components of the annual MQP content?

The annual MQP content will consist of a combination of Regulatory Element content and Practical Element content selected by FINRA and the CE Council. The annual MQP content will correspond to the registration category for which individuals wish to maintain their qualifications.

3.7 What is included in the Practical Element content?

The Practical Element content for an MQP participant will cover topics similar to those that a registered person would typically be required to complete as part of Firm Element training. This will include, among other things, topics relating to functions generally associated with the registration category for which the MQP participant is electing to remain qualified under the MQP.

3.8 If I enroll in the MQP but fail to complete the prescribed annual MQP content by the due date specified in FinPro, can I still continue in the MQP?

Absent an extension of time granted by FINRA, you must complete the prescribed annual MQP content by the due date specified in FinPro, otherwise you will be removed from the MQP.

3.9 If my firm terminated my General Securities Representative (Series 7) registration category and concurrently submitted a Form U5, do I need to make my election to join the MQP for that registration category at the time of the Form U5 submission?

No. You may make your election to participate in the MQP at the time of the Form U5 submission or within two years from the termination of the registration category. You will be required to complete any CE that becomes due under the MQP between the time of the Form U5 submission and the date that you commence participation in the MQP. Therefore, you have until the end of your 2-year qualification period to make your election, provided that you complete any prescribed annual MQP content that becomes due between the time of the Form U5 submission and the end of your 2-year qualification period.

3.10 If my firm terminates my General Securities Representative (Series 7) registration category after I have completed my annual Regulatory Element for that calendar year, will I be required to complete any MQP content (Regulatory Element or Practical Element) for the Series 7 if I join the MQP that same year?

No. If you join the MQP after completing your assigned Regulatory Element for the year, you will have no additional assigned learning for that year. You will be assigned both the Regulatory Element and Practical Element for the General Securities Representative (Series 7) registration category the following year.

3.11 If my firm terminates my General Securities Principal (Series 24) and General Securities Representative (Series 7) registration categories, can I elect to participate in the MQP only for the General Securities Principal (Series 24) registration category?

No. Because the General Securities Representative (Series 7) registration category is a corequisite representative registration category for the General Securities Principal (Series 24) registration category, you must also enroll your General Securities Representative (Series 7) in MQP and complete required annual MQP content (Regulatory Element and Practical Element) for both registrations.

3.12 If my firm terminates my General Securities Principal (Series 24) registration category on February 1, 2025, and I join the MQP at that time but remain registered as a General Securities Representative (Series 7) after that date, will I be required to complete any MQP content for the General Securities Representative (Series 7) registration category?

No. You will be required to complete annual Regulatory Element content for the General Securities Representative (Series 7) registration category and MQP content (Regulatory Element and Practical Element) for the General Securities Principal (Series 24) registration category. In addition, you will be required to complete any Firm Element training for the General Securities Representative (Series 7) registration category as prescribed by your firm. You should also be aware that if your General Securities Representative (Series 7) registration category is designated as CE inactive for two consecutive years, you will no longer be eligible to continue in the MQP for the General Securities Principal (Series 24) registration category.

3.13 My most recent firm terminated my General Securities Representative (Series 7) registration after being registered with the firm in that registration category for only six months. However, 20 days prior to registering with my most recent firm, I was registered with another firm as a General Securities Representative (Series 7) registration for 10 years. Do I satisfy the one-year registration period for MQP eligibility in order to enroll in the MQP?

Yes, provided that no more than 30 calendar days elapsed between the two registration periods and that you have satisfied the other conditions for MQP eligibility.

3.14 What is the cost of the annual MQP?

The annual MQP fee is $100. This is a flat fee, regardless of the number of registration categories for which an individual elects to remain qualified (that is, an individual who elects to remain qualified for multiple registration categories would be subject to the same $100 fee as an individual who elects to remain qualified for a single registration category). The fee is due at the time an eligible individual elects to participate in the MQP and thereafter annually each year that the individual continues in the MQP. Eligible individuals who elect to participate in the MQP within two years from the termination of a registration category, rather than at the time of their Form U5 submission, will also be assessed any accrued annual fee.
 

Section 4: Two-Year Qualification Period

4.1 My firm terminated my General Securities Representative (Series 7) registration category on August 15, 2019, and I have not been registered in any capacity since then. What are my options if I want to reregister with a firm under the current and amended rules? Am I eligible to join the MQP?

Your terminated registration category is subject to the two-year qualification period. Therefore, you may only reregister if you pass the applicable examination(s) or if you obtain a waiver of the examination(s). Further, you are not eligible to join the MQP in order to maintain your qualification. The MQP’s look-back provision and the second enrollment period is only available to individuals who terminated a registration between March 15, 2020, and March 15, 2022, and individuals who were participating in the FSAWP immediately prior to March 15, 2022.

Updated 3/16/2023

4.2 My firm terminated my Investment Company and Variable Contracts Products Representative (Series 6) registration category prior to March 15, 2020, but I remained registered as a General Securities Representative (Series 7) after that date. Can I reregister as an Investment Company and Variable Contracts Products Representative (Series 6) without having to pass the applicable examination(s) or having to obtain a waiver of the examination(s)?

Effective January 1, 2023, the two-year qualification period will apply to all partial terminations, with the exception of a terminated registration category (e.g., Series 6) that is a subset of a broader registration category (e.g., Series 7) for which an individual remains registered or otherwise qualified under the two-year qualification period. The Investment Company and Variable Contracts Products Representative (Series 6) registration category is a subset of the General Securities Representative (Series 7) registration category. Therefore, provided you remain registered as a General Securities Representative (Series 7) or otherwise qualified as such under the two-year qualification period and complete any prescribed Regulatory Element, you may reregister as an Investment Company and Variable Contracts Products Representative (Series 6) at any point without having to pass the applicable examination(s) or having to obtain a waiver of the examination(s).

4.3 My firm terminated my General Securities Representative (Series 7) registration category prior to March 15, 2020, but I remained registered as an Investment Company and Variable Contracts Products Representative (Series 6) after that date. Can I reregister as a General Securities Representative (Series 7) without having to pass the applicable examination(s) or having to obtain a waiver of the examination(s)?

As noted in Question 4.2, effective January 1, 2023, the two-year qualification period will apply to all partial terminations, with the exception of a terminated registration category (e.g., Series 6) that is a subset of a broader registration category (e.g., Series 7) for which an individual remains registered or otherwise qualified under the two-year qualification period. The General Securities Representative (Series 7) registration category is not a subset of the Investment Company and Variable Contracts Products Representative (Series 6) registration category. Therefore, you must reregister as a General Securities Representative (Series 7) prior to January 1, 2023, in order to avoid having to pass the applicable examination(s) or having to obtain a waiver of the examination(s).

4.4 My firm terminated my Investment Banking Representative (Series 79) registration category prior to March 15, 2020, but I remained registered as a General Securities Representative (Series 7) after that date. Can I reregister as an Investment Banking Representative (Series 79) without having to pass the applicable examination(s) or having to obtain a waiver of the examination(s)?

As noted in Question 4.2, effective January 1, 2023, the two-year qualification period will apply to all partial terminations, with the exception of a terminated registration category (e.g., Series 6) that is a subset of a broader registration category (e.g., Series 7) for which an individual remains registered or otherwise qualified under the two-year qualification period. The Investment Banking Representative (Series 79) registration category is not a subset of the General Securities Representative (Series 7) registration category. Therefore, you must reregister as an Investment Banking Representative (Series 79) prior to January 1, 2023, in order to avoid having to pass the applicable examination(s) or having to obtain a waiver of the examination(s).

4.5 My firm terminated my Investment Banking Representative (Series 79) registration category on June 1, 2019, and my General Securities Representative (Series 7) registration category on August 1, 2021. Do I have until August 1, 2023, to reregister as a General Securities Representative (Series 7) without having to pass the applicable examination(s) or having to obtain a waiver of the examination(s)? If so, do I have the same amount of time to reregister as an Investment Banking Representative (Series 79) without having to pass the applicable examination(s) or having to obtain a waiver of the examination(s)?

As noted in Question 4.2, effective January 1, 2023, the two-year qualification period will apply to all partial terminations, with the exception of a terminated registration category (e.g., Series 6) that is a subset of a broader registration category (e.g., Series 7) for which an individual remains registered or otherwise qualified under the two-year qualification period. You have until August 1, 2023, to reregister as a General Securities Representative (Series 7) without having to pass the Series 7 examination or having to obtain a waiver of the examination. However, the Investment Banking Representative (Series 79) registration category is not a subset of the General Securities Representative (Series 7) registration category. Therefore, in order to reregister as an Investment Banking Representative (Series 79) without having to pass the Series 79 examination or obtain a waiver of the examination, you must reregister as an Investment Banking Representative (Series 79) prior to January 1, 2023.

4.6 Further to Question 4.5, if I reregistered as an Investment Banking Representative (Series 79) prior to January 1, 2023, can I subsequently join the MQP if my Investment Banking Representative (Series 79) registration category is terminated in the future?

Yes, provided that you satisfy the MQP eligibility conditions, including the requirement that you be registered in the terminated registration category for which you elect to maintain your qualification under the MQP for at least one year immediately prior to the termination of that category.

4.7 If my firm terminates my General Securities Representative (Series 7) registration category on November 15, 2023, can I reregister in that category on September 15, 2025, without having to requalify by examination or obtain an examination waiver?

Yes, provided that you have completed any prescribed annual Regulatory Element content (i.e., the 2023 and 2024 Regulatory Element) for the General Securities Representative (Series 7) registration category prior to being approved for that registration. If you fail to complete the outstanding Regulatory Element content prior to November 15, 2025, (i.e., prior to the end of your two-year qualification period), you must requalify by examination or obtain an examination waiver in order to reregister.

4.8 Further to Question 4.7, how do I complete the outstanding Regulatory Element content?

Following the submission of the Form U4, you will be notified of any outstanding Regulatory Element content. You must have a FinPro account to access the outstanding Regulatory Element content. For guidance on how to create a FinPro account, please visit the Financial Professional Gateway webpage.

4.9 Further to Question 4.7, if I complete my 2023 and 2024 Regulatory Element by November 15, 2025, what will be my 2025 Regulatory Element due date?

You must complete your 2025 Regulatory Element for the General Securities Representative (Series 7) registration category by December 31, 2025. If you fail to complete it by that date, you will be designated as CE inactive effective January 1, 2026.