Continuing Education

FINRA, in conjunction with other self-regulatory organizations and the Securities Industry/Regulatory Council on Continuing Education, administers a two-part mandatory Continuing Education Program. The program consists of a Regulatory Element and a Firm Element.


Continuing Education Requirements

 

On February 8, 1995, the Securities and Exchange Commission (SEC) approved NASD Membership and Registration Rule 1120 that prescribes requirements for the Securities Industry Continuing Education Program. The Continuing Education Program has two elements – a Regulatory Element and a Firm Element. NASD Rule 1120 became effective July 1, 1995.

The Regulatory Element requires all registered individuals complete a computer-based training program within 120 days of their second anniversary of their registration approval date and every three years thereafter.

The Firm Element requires that broker-dealers establish a formal training program to keep employees up to date on job- and product-related subjects. In planning, developing and implementing the Firm Element, each broker-dealer must consider its size, structure, scope of business and regulatory concerns.


Regulatory Element Training Materials

 

To prepare for the Regulatory Element, the following training materials are available:

 

  • Content Outline for S101 and S106 Regulatory Element Programs
    The Regulatory Element is a computer-based training program that focuses on compliance, regulatory, ethical and sales practice standards. Its content is derived from rules and regulations, as well as standards and practices widely accepted within the industry. The Regulatory Element Programs have been specifically developed for registered Supervisors/Principals (S201), Series 6 Investment Company Products/Variable Contracts Representatives (S106) in addition to the General Program (S101) for individuals in other registrations categories not covered by the Supervisor and Series 6 Programs.

    The S201 Supervisor/Principal Regulatory Element program does not have a formal content outline. The program is designed to draw on the experience of the supervisor/principal involving such topics as supervision, suitability, insider trading, money laundering and interviewing and hiring.

  • FINRA Training Library
    A collection of material taken directly from the Regulatory Element program is available for practice for a fee through FINRA’s training library.

 

How to Complete the Regulatory Element

 

The Regulatory Element is available through two professional testing center networks—Pearson Professional Centers and Prometric Testing Centers—and has a fee of $75. View additional information on making an appointment or find a test center location near you.

 

2009 Firm Element Advisory

 

FINRA publishes the Securities Industry Regulatory Council’s annual Firm Element Advisory. The Firm Element Advisory identifies and recommends pertinent regulation and sales practice issues for firms for possible inclusion in their Firm Element training plans.

For more information on the Securities Industry Continuing Education Program, please visit the Web site of the Securities Industry/Regulatory Council on Continuing Education (CE Council). The CE Council Web site contains a wide range of continuing education information and publications.

Questions regarding NASD Rule 1120 and the Continuing Education Program may be directed to the Gateway Call Center at 301-590-6500.