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Regulatory Element

Regulatory Element FAQs

Background

Q. What is the Securities Industry Continuing Education Program?

A.The Securities Industry Continuing Education Program (Program) is a two-part program. The Regulatory Element consists of periodic computer-based training on regulatory, compliance, ethical and supervisory subjects. The Firm Element consists of annual, firm-developed and administered training programs designed to keep specified registered employees current regarding job- and product-related subjects.

Q. What is the Securities Industry/Regulatory Council on Continuing Education and what role does it play in the Securities Industry Continuing Education Program?

A. The Securities Industry/Regulatory Council on Continuing Education (the Council) has advisory and consultative responsibilities with regard to the development, implementation and ongoing operation of the Securities Industry Continuing Education Program. The Council is comprised of representatives from self-regulatory organizations (SROs)¹, and from the industry. Liaisons from the Securities and Exchange Commission and the North American Securities Administrators Association also participate in Council matters.

The Council maintains a web site - www.cecouncil.com - that is used to inform the industry about the Continuing Education Program. The Council web site also provides resources to assist the industry in complying with continuing education requirements.

Participation

Q. Who is required to participate in the Regulatory Element?

A. All Registered persons are required to participate and complete a designated Regulatory Element Program 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 industry. 

Q. What is the initial securities registration date?

A. The initial securities registration date (base date) is the first date a person became registered (i.e. approved) with an SRO. The initial registration date is not the date the person completed and passed the qualification examination. CRD uses the initial securities registration date as a base date from which to determine a person's Regulatory Element anniversaries.

Q. I have never been required to take a Regulatory Element session before or have not taken one in several years. Why must I do this now?

A. The Securities Industry/Regulatory Council on Continuing Education recognized that there is great value in exposing all industry participants to the benefits of the Regulatory Element, in part because of the significant regulatory issues that have emerged over the past few years. The Regulatory Element programs are continuously updated to address current regulatory concerns as well as new products and trading strategies. Those registered persons who were exempt from the Regulatory Element program due to a grandfathered or graduated status have not had the benefit of this material. Therefore, these exemptions were eliminated and all registered persons must participate in the Regulatory Element as of April 2005.

For more information on recession of exemptions from the Regulatory Element, see www.cecouncil.com => Tracking Trends => Grandfathering & Graduation Exemption FAQs.

Q. What registration categories are covered by the Regulatory Element?

A. Those who hold the following registrations are subject to the Regulatory Element requirements:

  • 4 Registered Options Principal *
  • 6 Investment Company Products/Variable Contracts Limited Representative
  • 7 General Securities Representative
  • 7 Securities Trader (NYSE)
  • 7 Trading Supervisor (NYSE)
  • 7A Floor Members Engaged in Public Business with Professional Customers (NYSE)
  • 7B Floor Clerks of Members Engaged in Public Business with Professional customers (NYSE)
  • 8 or 9/10 General Securities Sales Supervisor *
  • 8 or 9/10 Branch Office Manager (NYSE) *
  • 11 Assistant Representative-Order Processing
  • 12 General Securities Sales Supervisor (NYSE) *
  • 13 Allied Member (NYSE)
  • 14 Compliance Official (NYSE) *
  • 15 Foreign Currency Options
  • 16 Supervisory Analyst (NYSE) *
  • 17 Limited Registered Representative (United Kingdom)
  • 22 Direct Participation Programs Limited Representative
  • 23 General Securities Principal Sales Supervisor Module *
  • 24 General Securities Principal *
  • 26 Investment Company Products/Variable Contracts Limited Principal *
  • 27 Financial and Operations Principal *
  • 28 Introducing Broker-dealer Financial and Operations Principal *
  • 37 Canada Module of the General Securities Representative Examination (Options included)
  • 38 Canada Module of the General Securities Representative Examination (Options not included)
  • 39 Direct Participation Programs Limited Principal *
  • 47 Japan Module of the General Securities Representative Examination
  • 51 Municipal Fund Securities Limited Principal *
  • 52 Municipal Securities Representative
  • 53 Municipal Securities Principal *
  • 55 Equity Trader
  • 62 Corporate Securities Limited Representative
  • 72 Government Securities Representative
  • 79 Investment Banking Representative
  • - Government Securities Principal *
  • - Securities Lending Representative (NYSE)
  • - Securities Lending Supervisor (NYSE)
  • 82 Limited Representative Private Securities Offerings
  • 86/87 Research Analyst

* Persons with these Principal/Supervisor registrations participate in the Principal/Supervisor Regulatory Element computer-based training module (the Supervisor Program-S201).

Q. What if an individual has multiple registrations obtained in different years, such as a Series 6 in 1990 and a Series 7 in 1991? Which date determines when that person must participate in the Regulatory Element?

A. The date of the initial registration (in this case 1990) applies, provided that the person has remained continuously registered since that time and has had no significant disciplinary action.

Q. What if an individual had a Series 65 (State Investment Adviser) registration in 1992 and a Series 6 (Investment Representative) in 1993? Which date determines when that person must participate in the Regulatory Element?

A. The date of the Series 6 registration (1993) is the determining date, provided that the person has remained continuously registered since that time and has had no significant disciplinary action. The Series 65 State Investment Adviser registration would not cause a person to be covered by the Program because it is a state, not an SRO, registration category.

Q. Certain municipal securities representatives and principals were registered with one or more bank regulators pursuant to Municipal Securities Rulemaking Board (MSRB) rules before becoming associated with an FINRA member firm. What is their initial registration date and how do you measure the period of their continuous registration?

A. The initial registration date is the date the person was first registered with the bank regulator. The period of continuous registration begins with this date and includes the period of bank registration plus the individual's registration with a broker-dealer. When there are situations where CRD does not reflect the individual's entire registration history, the person's broker-dealer should advise FINRA Testing & Continuing Education Department in writing that the person has a registration history with a bank regulator. The letter must include the amount of time registered with a bank regulator before becoming associated with broker-dealer and the bank regulatory organization(s) with which the person was registered. The CRD record for the person will be corrected to reflect the correct registration history once this information is verified with bank regulators.

Q. Can registered persons who volunteer or are called into active military duty obtain relief from Regulatory Element obligations for the period of time that they are on active duty?

A. Yes. FINRA (see NYSE Information Memo 03-17 and NASD Notice to Members 02-12) provides relief from continuing education obligations (Regulatory and Firm Element) to registered persons who volunteer or are called into active military duty. The procedure requires the broker-dealer of the registered person to notify the CRD/Public Disclosure Department by means of a letter, on firm letterhead, identifying the name and CRD number of the person called into active duty, the name and CRD number of the firm (or firms) with whom the person is associated, and a copy of the official call-up notification. Letters should be mailed to P.O. Box 9495, Gaithersburg, MD 20898-9495 or faxed to (240) 386-4751.

Q. What if a person's registration temporarily lapses?

A. If a person ceases to be registered for less than two years, he or she will maintain the original registration date as the initial securities registration date, but will have to participate in any Regulatory Element Program that he or she may have missed during the lapsed period. For example, if a person's registration lapses at seven and one-half years, and that person wishes to reactivate registration at what would be his or her ninth year anniversary, he or she must satisfy the Regulatory Element requirement before the registration can be reactivated.

Q. What if the person ceases to be registered for two or more years?

A. A person who is not registered for two or more years begins the entire registration and qualification process anew. He or she must take the appropriate qualification examination(s) and begin the Regulatory Element as if entering the Program for the first time.

Q. What is the initial registration date of the person whose registration lapsed and who re-enters the securities business by waiver rather than by examination?

A. The initial registration date of a person who re-enters the securities business by waiver is date the waiver is posted in CRD.

Regulatory Element Programs

Q. How many different Regulatory Element programs are there?

A. There are currently three different Regulatory Element programs, the S201 Supervisor Program for registered principals and supervisors, the S106 Series 6 Program for Investment Company Products/Variable Contracts Representatives, and the S101 General Program for Series 7 registered persons and all other registrations.

Q. Does a registered principal or supervisor take one or two Regulatory Element Continuing Education sessions?

A. Registered principals and supervisors take only one Regulatory Element program - the S201 Supervisor Program.

The following examples clarify the Regulatory Element training a registered person is required to take and when the training will occur. Each example presumes it is being evaluated as of April 4, 2005.

Example 1

Registered Person

Registration History

Base Date

Next Anniversary/ Required Regulatory Element Program

Roni

Series 6 Rep 8/18/88
Series 7 Rep since 9/1/90

8/18/88

8/18/08. The S101 General Program

Example 2

Registered Person

Registration History

Base Date

Next Anniversary/ Required Regulatory Element Program

Pat

Series 7 Rep 9/1/86.
Series 8 Sales Supervisor 4/1/90

9/1/86

9/1/2009. The S201 Supervisor Program.

Example 3

Registered Person

Registration History

Base Date

Next Anniversary/ Required Regulatory Element Program

Heather

Series 6 Rep 10/1/84.
Series 26 Principal 8/3/86

10/1/84

Formerly grandfathered from the Regulatory Element. However, there are no longer exemptions from program participation.  Next requirement 10/1/10

Example 4

Registered Person

Registration History

Base Date

Next Anniversary/ Required Regulatory Element Program

John

Series 6 Rep 7/20/84. Incurs a significant disciplinary action effective 1/31/09

1/31/09

1/31/11. The S106 Series 6 Program. A significant disciplinary action creates an immediate Regulatory Element requirement. John's subsequent requirement will be 1/31/11.

Q. What do each of the Regulatory Element programs cover?

A. All the Regulatory Element programs focus on compliance, regulatory, ethical and sales practice standards. 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.

Both the S101 General Program and the S106 Series 6 Program are comprised of four modules. While the content is specific to the respective registration categories covered by each program, the subject titles for modules 1 through 3 are the same. The content of Module 4 varies according to the program.

General Program (S101)

 

Series 6 Program (S106)

Module A

Communications with the Public

Module A

Communications with the Public

Module B

Suitability

Module B

Suitability

Module C

Handling Customer Accounts, Trade and Settlement Practices

Module C

Handling Customer Accounts, Trade and Settlement Practices

Module D

New and Secondary Offering and Corporate Finance

Module D

Product Knowledge

A content outline is available for the S101 and S106 programs. They can be found on www.cecouncil.com => Regulatory Element => Content Outline.

Q. How is the education presented in each module?

A. The S101,S106, and the S201 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 Page to review preparation resources)

Q. How should an individual prepare for the Regulatory Element programs?

A. The S101 and S106 Programs do not necessarily require advance preparation. 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.

A Content Outline for the S101, S106 and S201 Regulatory Element Program is available. The outlines detail the structure of the S101/106 and S201 program(s) and include an explanation of the topics covered in each Module and can be found at: http://www.cecouncil.com/regulatory_element/training_materials/

In addition, the FINRA online learning programs address a range of training topics for compliance personnel, registered representatives, administrative and operations staff, and those with supervisory responsibilities. The programs are available as e-learning courses, webinars, webcasts and podcasts. Some of programs offer completion tracking and deliver virtual compliance training that may be suitable for firm element continuing education or Regulatory Element preparation.

Please visit: www.finra.org/Industry/Education/OnlineLearning/index.htm for additional information on the current course offerings. Please email education@finra.org if there are any questions relating to the eLearning materials.

Q. Are there training materials available for the Regulatory Element?

A. Yes. Please visit:
http://www.cecouncil.com/regulatory_element/training_materials/

Q. What type of feedback do firms receive about their registered employees' performance on the Regulatory Element?

A. Firms receive quarterly and annual performance reports for the General and Series 6 Programs. The reports show:

  • The number of Regulatory Element sessions taken by the firm's employees during the period
  • The number of complete and incomplete sessions
  • Aggregate percentage performance and standard deviations for each of the seven subject modules
  • Comparative industry information

Firms must use this feedback when conducting the annual Needs Analysis, which is the basis for the firm's written Firm Element training plan. Material differences from industry performance in those areas that are pertinent to the firm's business should be addressed in Firm Element training.

No performance reports are provided for the S201 Supervisor Program.

Significant Disciplinary Actions

Q. What is a significant disciplinary action and what impact does it have on participation in the Regulatory Element?

A. A significant disciplinary action is defined in the SRO rules as:

  • Any statutory disqualification as defined in Section 3(a)(39) of the Securities Exchange Act of 1934
  • A suspension, or the imposition of a fine of $5,000 or more for violation of any provision of any securities law or regulation, or any agreement with or rule or standard of conduct of any securities self-regulatory organization, or as imposed by any such regulatory or self-regulatory organization in connection with a disciplinary proceeding
  • An order imposed as a sanction in a disciplinary action to re-enter the Continuing Education Program by any securities governmental agency or securities self-regulatory organization

Details of a significant disciplinary action are posted to an individual's CRD record. The significant disciplinary action requires the registered person to take and complete a Regulatory Element session within 120 days of the effective date of the significant disciplinary action, then on the 2nd anniversary of this base date and every 3rd year thereafter. The effective date is the 45th day after the Date of Action specified in the official disciplinary decision document. Thus, the effective date of the significant disciplinary action becomes the new Regulatory Element base date for the individual.

Q. If a significant disciplinary action is appealed, what will be that person's Regulatory Element requirement status?

A. If an appeal is filed, the Regulatory Element requirement associated with that disciplinary action will be deferred, and the individual will retain the Regulatory Element status he or she had before the disciplinary action was taken. If the significant disciplinary action is sustained on appeal, the effective date would become the 45th day after the action was sustained. The person must participate in an immediate session within 120 days of this new base date, then on the 2nd anniversary of the base date and every 3rd year thereafter.

Failure to Comply with Regulatory Element Requirements

Q. What are the consequences of not complying with the Regulatory Element?

A. The registrations of any person who does not satisfy the Regulatory Element requirements will be deemed CE inactive. This means that he or she may not engage in, or receive compensation for activities that require a securities registration. For example, a General Securities Registered Representative (Series 7) may not engage in any activities involving the solicitation and handling of securities transactions. Likewise, if a person is registered as a Financial and Operations Principal, the person may neither act in the capacity of a Financial and Operations Principal or in any other capacity that requires registration, nor receive compensation for activities requiring any registration.

It is important to schedule all Regulatory Element computer-based training appointments early in the 120-day window in the event that the person does not complete the required training on the first attempt and has to reschedule.

Q. How long may a registered person remain CE inactive before he or she must re-qualify for registration by examination?

A. A registered person can remain CE inactive for up to two years. The registrations of any person who is CE inactive for a period of two years will be administratively terminated, and the person must re-qualify for registration by examination.

Q. Must the firm submit a Form U5 (Termination Notice) to report that a person's registration is inactive for failure to meet the Regulatory Element requirements?

A. No. However, if the firm for any reason, including refusal to comply with the Continuing Education requirements, subsequently terminates the person, a Form U5 must be filed.

Q. Suppose a person is CE inactive and is later terminated by his firm. How long does he have to become re-registered with another firm without having to re-qualify by examination?

A. Ordinarily, a person has a period of two years to re-register without taking a registration examination. However, if the person is CE inactive for two years, his or her registration will be administratively terminated regardless of the time elapsed since the person was terminated by his or her previous firm.

Example:

Joan is registered with Firm A. She does not satisfy the Regulatory Element requirement due for her 5th anniversary and she becomes CE inactive on 9/1/02. On 11/1/02, Joan's firm files a Form U5 to terminate her registration. Joan reapplies for registration with Firm B on 10/1/04 but her registration had been administratively terminated on 9/1/04 because she had been CE inactive for two years. Joan must re-qualify by examination even though it has been less than two years between the time when her Form U5 was filed by Firm A and her Form U4 was filed by Firm B.

Q. If a registered person has both a principal/supervisor and non-principal/supervisor registration and becomes CE inactive, do all of his or her registrations become inactive?

A. Yes. All registrations are deemed inactive when that person does not satisfy the Regulatory Element requirements.

Q. May a registered person who is deemed CE inactive continue to receive trail or residual commissions?

A. Yes. Trail or residual commissions that are permitted to be paid under applicable SRO rules for business completed before the inactive period commenced may be paid, if that is the policy of the person's firm.

Keeping Track of Regulatory Element Requirements

Q. How do broker-dealers learn of the Regulatory Element requirements of their registered persons?

A. Broker-dealers must utilize CRD to obtain information about the Regulatory Element requirements of their registered persons. Specifically, firms must periodically review the continuing education information in their Firm Queues on CRD. The Firm Queues are listed in the Individual Processing column of the CRD Site Map, the first page after the log-in screen. CRD also makes available supplemental CE reports and e-mail notifications to assist firms in identifying and tracking their registered persons for Regulatory Element purposes.

Continuing Education Firm Queues

Approaching CE Requirement Queue

Lists individuals with CE Windows starting within 28 days.

Currently CE Required Queue

Lists all individuals currently in their 120-day CE Window.

CE Satisfied Queue

Lists individuals who have completed the Regulatory Element within a time period specified by the user.

CE Inactive Queue

Lists approved individuals at the firm who are currently CE Inactive.

Current Individual Deficiencies Queue² - CE Inactive

Lists new hires of the firm who are CE Inactive and whose registrations are therefore not approved. (Note: CRD does not approve the registrations of persons who are inactive unless and until those persons satisfy the Regulatory Element. Persons in this situation have CRD registrations with a status of DEFICIENT-CE.)

CE 2-Year Termed Queue

Lists all individuals who have had their registrations administratively terminated because they had been CE Inactive for 2 years.

Supplemental CE Reports Available From CRD

CRD will also provide firms with various reports to complement the Continuing Education Queues. Reports marked with an asterisk (*) may be imported into a spreadsheet or database where the user may then sort the data. To request any of these reports, please send an e-mail request to crdreports@finra.com or call the Gateway Call Center at (301) 869-6699.

CE Download*

This report defines the CE base date for actively registered individuals with the firm who are subject to the Regulatory Element.

Approaching CE Queue Download*

This report allows firms to download the list of individuals in the firm's Approaching CE Requirement Queue.

Approaching CE Queue Report

This report will provide the firm with a "printable" list of individuals in the firm's Approaching CE Requirement Firm Queue.

Current Inactive CE Individuals Within A Firm

This report lists all individuals currently employed with the requesting firm who have a status of CE Inactive at the time the report is requested. Note: This report does not include CE Inactive new hires who are Deficient-CE.

Previously Inactive CE Individuals Within A Firm

This report lists all individuals who were employed by the requesting firm and who had a status of CE Inactive during the timeframe specified. Note: This report does not include CE Inactive new hires who are Deficient-CE.

Approaching CE 2-Year Termed Report

This report lists individuals who will be administratively terminated within the next 10 days (if they remain CE Inactive) for failure to satisfy the Regulatory Element requirement. These individuals have had a status of CE Inactive for two years from their most recent requirement window end date.

CE 2 Year Termed Report

This report lists individuals who were employed by the requesting firm and were administratively terminated during the timeframe specified. Individuals on this report will need to re-qualify for registration by a qualification examination and must submit an Initial Form U4 to re-activate their registrations.

E-mail Notifications

There are three types of e-mail notifications that firms can request from CRD. The first is an e-mail sent to the firm whenever a registered person has not satisfied his or her Regulatory Element requirement within the first 30 days of his or her 120-day requirement window. The second is an e-mail sent to the firm whenever a registered person at the firm becomes inactive for failing to satisfy the Regulatory Element requirement. The third is an e-mail sent to firms when a registered person is within 30 days of his or her anniversary end date. To request these e-mails, firms should

  • Log onto CRD and go to the CRD Main tab. This is the Site Map.
  • In the Organization column on the Site Map, click on NFI Organization Search under the Organization Non-Filing Info heading.
  • Click on Firm Notification on the Navigation Panel at the left of the screen. (Important Note: if you do not see Firm Notification on the Navigation Panel or at the bottom of the screen, it is probably because you do not have authorization for this function. Contact your firm's CRD Account Administrator to obtain authorization.)
  • Enter the e-mail address to which you would like the e-mail notifications sent, and the contact individual's name and phone number.
  • Click on the box or boxes that represent the continuing education e-mail notification(s) you wish to receive.
  • Click on Save.

Q. Must a broker-dealer have written supervisory procedures to comply with the Regulatory Element?

A. Yes. It is the responsibility of each broker-dealer to have written procedures that evidence the following activities:

  • Periodically view the Regulatory Element information related to the registered persons associated with the firm that is made available to it on CRD.
  • Notify registered persons of their Regulatory Element obligations.
  • Track compliance of registered persons with the Regulatory Element requirements.
  • Prohibit registered persons who are CE inactive from performing or being compensated for any activities that require a securities registration.

Scheduling Regulatory Element Sessions

Q. Where can a person take the Regulatory Element computer-based training?

A. The Regulatory Element can be taken at conveniently located test centers operated by Pearson VUE and Prometric Professional Testing Centers. For a list of authorized training delivery centers, please see the test center locations list. Outside the U.S. and Canada, there are authorized training delivery centers operated by VUE in Frankfurt, Hong Kong, London, Paris, Seoul, Singapore, Sydney and Tokyo.

Q. If a registered person resides outside the United States or Canada, is it possible to have a Regulatory Element requirement deferred?

A. Yes. Foreign Deferrals are granted to registered persons who reside outside the United States and Canada and whose residence is outside a radius of approximately 350 miles from a Regulatory Element delivery site. Firms must request a foreign deferral in writing or electronically. The request must be signed by a principal of the firm and mailed to the FINRA Continuing Education Department, 9509 Key West Avenue, Rockville, MD 20850, or faxed to 240-386-4675. Electronic requests may be sent via email tocontinuinged@finra.org. Requests must contain the individual's name, CRD number, and the city and country of residence. Firms must proactively request a foreign deferral for each anniversary that subjects a registered person to a Regulatory Element requirement. FINRA does not automatically renew foreign deferrals.

Q. How does a person make an appointment to take the Regulatory Element computer-based training?

A. The Regulatory Element programs are administered at conveniently located test centers operated by Pearson VUE and Prometric professional testing center networks. Appointments to take the Regulatory Element sessions can be scheduled through either network:

  • Pearson Professional Centers: contact Pearson VUE's National Registration Center at 1-866-396-6273 (toll free), or 1-952-681-3873 (toll number) or go to www.pearsonvue.com/finra for Web-based scheduling.
  • Prometric Testing Centers: contact Prometric's National Call Center at 1-800-578-6273 (toll free) or go to www.prometric.com/finra for Web-based scheduling.

For appointments in Pearson VUE centers outside of the U.S. and Canada, participants must phone a toll free number in the country in which they reside. A list of the toll free numbers may be found at www.cecouncil.com => Regulatory Element => Program Delivery Sites.

When making an appointment at Prometric or Pearson VUE locations, the caller must provide:

  • the candidate's name and CRD number;
  • the firm's name
  • a telephone number where the candidate or the candidate's firm can be reached

It is strongly suggested to schedule appointments as soon as possible within the participant's 120-day window.

Q. How long is a Regulatory Element appointment?

A. Appointments for the Regulatory Element are three and one half hours. Persons with disabilities may be given additional time to complete the Regulatory Element if a request is made when scheduling the appointment. If a Regulatory Element session is not completed within the appointment time, the participant must retake the entire session at another appointment.

Q. What does it cost to take the computer-based training and how will firms be charged?

A. The cost is $100 for each Regulatory Element session taken at a Prometric Technology Center or a Pearson VUE Center. The $100 is charged to the firm's CRD account after the session is taken. "No-shows" and those who cancel within 48 hours of a scheduled appointment will be charged $100. If a firm requests a Regulatory Element session for an employee who is not required to satisfy the Regulatory Element, the $100 will be deducted from the firm's CRD account at the time the request is made, not after the session is completed.

Q. May a firm request a Regulatory Element session for a registered person who is not otherwise required to complete the Regulatory Element?

A. Yes. To request the Regulatory Element for a registered person outside of his or her anniversary requirement, a firm must submit an amended Form U4 and request the appropriate Regulatory Element. The firm's CRD account will be charged for the training session when the appointment is requested, rather than after the Regulatory Element is taken.

Q. If a person does not complete the Regulatory Element within the allotted time, how long must he or she wait before rescheduling another appointment?

A. The person must wait 48 hours to reschedule another appointment. To avoid becoming inactive for failing to satisfy the Regulatory Element training on the last day of the 120-day window, it is important that registered persons avoid waiting until the last minute to schedule an appointment. There will be another $100 charge for the rescheduled session.

Q. Can a person schedule a Regulatory Element appointment after his or her 120-day window closes?

A. Yes. A person who is required to satisfy the Regulatory Element can schedule an appointment for up to two years after the close of the 120-day window. However, the person whose 120-day window closes without satisfying the Regulatory Element requirement is deemed CE inactive for all registrations he or she possesses. This means that the person may not conduct, or be paid for any activities that require a securities registration.

Q. Are there any provisions to accommodate people with disabilities at Prometric Technology Centers or Pearson VUE sites?

A. Yes. The firm of a person with a disability should visit FINRA's Special Accommodations or contact FINRA's Field Support Services at 800-999-6647, option 2 to arrange for special accommodations.

Endnotes

1 The Chicago Board Options Exchange, Inc., the Municipal Securities Rulemaking Board, the Financial Industry Regulatory Authority, the New York Stock Exchange, Inc.

2 CE Inactive Deficiencies are found in the Registrations Queue. To access, first click on the Registrations Queue => Current Individual Deficiencies => CE Inactive from the deficiencies list.

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Guide to the Regulatory Element