As we progress through 2024, it’s crucial for all registered persons in the financial industry to remember their continuing education (CE) obligations. FINRA has recently released important information about these requirements, and we want to ensure you’re well informed.
Remember, as of last year, both the Regulatory Element and Firm Element must be completed annually by December 31. Failing to meet these requirements by the deadline will result in an automatic CE inactive designation by FINRA, which could significantly impact representatives ability to work in the industry.
Regulatory Element CE: Action Items for CCOs
For compliance, it’s important to keep these important action items in mind:
- Ensure all registered persons complete their assigned courses by the deadline.
- Be aware that adding or dropping registrations may change assigned courses.
FINRA Gateway Resources for Firms
FINRA has enabled settings and created reports within FINRA Gateway to assist firms in complying with the Regulatory Element requirements:
- Option to Set an Earlier CE Completion Deadline: Firms have the option to set and require an earlier completion deadline than December 31 for individuals to complete their Regulatory Element courses. Firm-based CE due dates can be set in FINRA Gateway’s Firm Settings to be included in FINRA automated CE Notifications.
- Sending Automated CE Notifications to Associated Persons: Firms can schedule automated Regulatory Element notifications to be sent to associated persons in FINRA Gateway’s Firm Settings. These include Regulatory Element due date notifications and CE status change emails. Firms also have the option to send automated email notifications to their registered persons regarding an earlier completion deadline, if one is selected. For more information on configuring notifications, see the Firm Settings Guide.
- Monitoring CE Obligations: Throughout the year, firms can monitor the CE obligations and statuses of their registered persons by using the Annual Regulatory Element templates in FINRA Gateway Reports.
- Ensuring Registered Persons Have Access to FinPro: To identify registered persons without an active FinPro account, use the FinPro Access Tracking report template available in FINRA Gateway. Set the filter for the “Is FinPro User” field to “No” when using the template.
Representatives will need to access their assigned courses through their Financial Professional Gateway (FinPro) account. While there, they should take a moment to verify that all your information is up to date, especially email address and phone number. This will ensure they receive all important notifications from FINRA.
Registered persons who do not currently have a FinPro account can create an account on the FinPro registration page. For guidance, they may refer to the FinPro account creation guide.
Firm Element CE: Action Items for CCOs
For compliance officers managing the Firm Element CE component, it’s essential to maintain a robust CE program for your registered persons. In the report, FINRA mentioned keeping the following action in mind:
- Conduct an annual evaluation of training needs
- Develop a written training plan considering:
- Firm size
- Organizational structure
- Scope of business activities
- Regulatory developments
- Performance of registered persons in the Regulatory Element
- Include supervisory training if needed
- Consider incorporating AML compliance and annual compliance meeting training into Firm Element requirements
So, don’t delay. Your role in managing these CE requirements is critical. Stay proactive by logging into the FINRA Gateway to set training deadlines and make a plan to complete your CE requirements well before the December 31 deadline. Your future self will thank you for staying ahead of the game!
Need help with your Firm Element CE program? We’re here to assist. Contact us today for support in developing your Needs Analysis, Written Training Plan, or overall Firm Element CE strategy. Our expertise can help ensure your program meets regulatory requirements and enhances your team’s professional development.
To read the complete Information Notice from FINRA, click here.