The Securities and Exchange Commission has authorized the Financial Industry Regulatory Authority guidelines that (1) combine the National Association of Securities Dealers (NASD) and Incorporated New York Stock Exchange registration guidelines, in addition to existing FINRA guidelines; (2) reorganize the representative-level credentials assessment requirements; and (3) modify continuing education requirements. The guidelines will become reliable October 1, 2018.
While the brand-new registration guidelines resemble the NASD and Incorporated NYSE guidelines that they change, there are a couple of substantive distinctions. The brand-new registration guidelines broaden the capability for member companies to send liberal registrations to FINRA such that any associated person of a member company (consisting of people working exclusively in clerical or ministerial capabilities) might be permissibly signed up. People that are permissibly signed up will go through all FINRA guidelines to the degree appropriate to their activities. The brand-new registration guidelines also develop a brand-new program to waive requalification requirements for people who end their registrations as agents or principals to go to work for a foreign or domestic financial services market affiliate of a member company (topic to conditions).
The brand-new guidelines also need all member companies (consisting of those presently exempt from the requirement of having a financial and operations primary or a presenting broker-dealer financial and operations principal) to designate a primary financial officer and a primary operations officer. The brand-new registration guidelines develop 3 brand-new primary registration classifications (chief compliance officer, financial investment banking principal, and personal securities offerings principal) and remove many others (order processing assistant agent, UK securities agent, Canada securities agent, options agent, corporative securities agent, federal government securities agent and foreign partner).
FINRA has reorganized representative-level evaluation requirements such that candidates will be needed to take both a general understanding assessment (called the Securities Industry Essentials or “SIE” examination) and a customized, specialized understanding evaluation associated to their specific signed up function. The restructuring looks for to get rid of duplicative screening.