FINRA requested comments on enhancements to the Securities Industry Continuing Education Program that are being considered by the Securities Industry / Regulatory Council on Continuing Education ("CE Council"). The comment period expires on November 5, 2018.

Possible enhancements to the continuing education program include (i) requiring, on an annual basis, registered personnel to complete Regulatory Element training focused more narrowly on regulatory changes relevant to the individual's registration category, (ii) considering ways to reduce overlap between Firm Element training and other training requirements to which personnel are subject and (iii) permitting individuals to maintain broker-dealer qualifications after terminating their registration by completing continuing education requirements.

Commentary / Mark Highman

These enhancements to continuing education requirements warrant serious consideration. Tying Regulatory Element training more closely to an individual's specific securities activities should make the training more relevant. Further, requiring registered personnel to take Regulatory Element training annually (as opposed to the current three-year training cycle following the second anniversary of the individual's registration) should make Regulatory Element training more timely. However, firms should consider whether the annual requirement would impose an additional burden on personnel or, as the CE Council suggests, would remain manageable if narrowed to address relevant regulatory developments.

Separately, broker-dealer personnel would likely welcome the ability to maintain their qualifications after leaving the securities industry by completing continuing education, instead of losing their qualifications after two years following termination (as is now the case). While the Financial Service Affiliate Waiver Program that goes into effect on October 1, 2018 will provide a way for qualifying personnel who leave a broker-dealer to work for a financial services affiliate to re-register with the firm or another broker-dealer without having to re-qualify, the CE Council's proposal would provide a way for broker-dealer personnel who are not eligible for the Financial Service Affiliate Waiver Program (e.g., because they leave the financial services industry) to maintain their qualifications by taking required continuing education.

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