FINRA New Competency Exams
On Mar. 8, FINRA proposed rules to streamline competency exams.
- New securities industry essentials exam expands entry opportunities for the industry.
- Facilitate opportunities for professionals seeking to enter or re-enter finance sector.
- Opportunity to show fundamental knowledge of requirements, before joining a firm.
- Provides firms a larger pool of qualified candidate who have shown aptitude in area.
- Creates a general knowledge examination and a specialized knowledge examination.
- Removed Pre-Qualification
- FINRA rules had required individuals who work for FINRA-firm to pass specific exams.
- Individuals had to be associated with FINRA-firm, to be eligible to take an exam test.
- In 2016, FINRA had more than 90,000 representative-level exam candidates at firms.
- Ended duplicative testing, and barriers to demonstrate and maintain a qualification.
- Persons Without Experience
- Revisions facilitate access for individuals without prior securities industry experience.
- To take FINRA general knowledge exam, called the securities industry essential (SIE).
- May include investor, recent college graduate or professional seeking a second career.
- Individual must also pass second more specialized exam, and be associated with firm.
- Specific Requirements
- Representative-level registrants will take the SIE, and then choose specialized exams.
- The model will eliminate duplicative testing of general securities knowledge in exams.
- Individuals who do not work for FINRA-firm, and members of the public, may take SIE.
- Give individuals the flexibility, to demonstrate their knowledge of securities industry,
and its regulatory requirements before joining FINRA-regulated firm, as was required.
- Transfers to Affiliates
- Person transferring to group affiliate, may get waiver for credentials to be reinstated.
- If return to industry in a 7-year period and meet the requirements of waiver program.
- No need to re-take qualification exams, if complete continuing ed, no adverse events.
- Currently, if an individual is registered and transfers to affiliate for two or more years,
the individual’s qualification expires and they must re-take an exam to be re-qualified.
- Comment period is open for 21 days following pending publication in federal register.
||FINRA-2017-007, PR, 3/8/2017
||Compliance; Exams; Legal; Operations; Registration; Training; HR
||United States of America
||Fund Mgt; Securities
Last substantive update on 03/08/2017