SEC’s Recent Order Approving FINRA Rule Change Relating To Qualification and Registration Requirements
On July 7, the Securities and Exchange Commission issued an order adopting the Financial Industry Regulatory Authority’s proposed rule amending the qualification and registration requirements for associated persons. The new rule restructures the current qualification examinations, creates a general knowledge examination called Securities Industry Essentials (SIE) and specialized knowledge examinations, and revises the continuing education requirements. The new rule also consolidates certain National Association of Securities Dealers rules and New York Stock Exchange rules into the FINRA Rulebook.
In particular, the new rule requires first-time registrants to take the SIE exam prior to taking a representative qualification examination specific to their job function at a FINRA member firm. In addition, the new rule expands the scope of individuals who may permissively register and allows individuals flexibility to retain their registration status, even after working at a non-FINRA member financial services affiliate for an extended period.
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