The SEC approved proposed FINRA amendments to (i) consolidate the NASD and NYSE incorporated registration rules for associated persons as FINRA rules, (ii) restructure representative-level qualification exams, and (iii) change Continuing Education requirements. The consolidated rules will allow a member firm to permissively register all associated persons, create a waiver program for employees who are registered with a member firm and transfer to a financial services industry affiliate, and require firms to identify a Principal Financial Officer and a Principal Operations Officer.
In addition, FINRA restructured the qualification exams by (i) creating a general knowledge exam called the Securities Industry Essentials ("SIE") and (ii) creating specialized knowledge examinations for the representative-level examinations. The amendments require all representative-level applicants to pass the SIE as well as a specialized exam specific to their job functions. Individuals registered under the previous examination system will be allowed to maintain their registration without re-testing under the revised requirements. FINRA also made corresponding changes to its Continuing Education requirements.
The amendments will be effective October 1, 2018.
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