Overview

The Regulatory Element Program consists of periodic computer-based training on regulatory, compliance, ethical, supervisory subjects, and sales practice standards. Registered persons are required to participate and complete a designated Regulatory Element within a 120-day period that commences with the second anniversary of their initial securities registration, and reoccur every three years thereafter for as long as they remain in the securities business.

There are currently four different Regulatory Element Programs, the Supervisor Program for Registered Principals and Supervisors (S201), the Series 6 Program for Investment Company Products/Variable Contracts Representatives (S106), the General Program for Series 7 Registered Persons and all other registrations (S101), and the Operations Professional Program For Series 99 Registered Persons. Their content is derived from rules and regulations as well as standards and practices widely accepted within the industry. Although the specific requirements of certain rules may differ slightly among the various SROs, the programs are based on standards and principles applicable to all.

The S101, S106, S201 and S901 Programs lead participants through scenarios depicting situations faced by registered persons in the course of their business. Participants review cases in categories as suitability, communications with the public, ethics, anti-money laundering, insider-trading, product knowledge, and for the S201 only, supervision.

The formats of the scenarios are computer interactive text-based featuring embedded story artifacts and education al tools in the form of glossary terms and resources. After reading the scenario, the participant must demonstrate their understanding of the issues by choosing the most appropriate responses(s) to questions concerning the facts in the scenario. The programs assess the participant's understanding of the topic. If the participant does not show proficiency with the subject matter, the program delivers tutorials about the topics in the module and the participant must try again with another scenario in the same module. The participant must successfully complete on scenario in the module before advancing to the next module. The programs provide immediate feedback as participants work through the scenario questions.

See Training Materials to review preparation resources.

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