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 99 Program for Operations Professionals (S901), the Series 6 Program for Investment Company Products/Variable Contracts Representatives (S106), and the General Program for Series 7 Registered Persons and all other registrations (101). 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 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. With respect to the S901, participants will select which of the four functional categories best describe the majority of their routine work. Upon selection of a functional category, a case will be randomly selected from one of the four sub-modules. The cases in these sub-modules will focus on issues related to each specific job function.
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.
You may use the following resources to prepare:
- Content Outlines – Provides information regarding each program’s structure (e.g., presentation, assessment, timing) and content including, common topics that may be covered in the modules.
- Orientation for Regulatory Element Programs – Reviews the interactive and navigation functions of the redesigned programs.
- Orientation for the Operations Professional Regulatory Element Program – Animated orientation which details the interactive functions of the program, including self-selection in Module D.
- Sample Case – An abbreviated sample case that demonstrates the new format and types of activities of the redesigned S101 and S106 programs.
Please note: The Orientation and Sample Case materials are designed to familiarize candidates with the user experience, new functionalities, and navigational features for all redesigned programs. The features detailed in these training materials are utilized across the S101, S106 and S201 Programs.
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.
The Options Institute at CBOE.com offers free tutorials that explain the basics of options including terminology and strategies. The tutorials are self-paced and include short, multiple-choice quizzes. The terminology is accessible through the Options Dictionary, which is available while taking the tutorial.
Education Savings Plans
Educational plans, such as 529 College Saving Plans, are designed to help investors save for the cost of college and other postsecondary school education. When established by states, 529 Plans are considered municipal securities and so must comply with MSRB rules. The links provide information about the basic features of college savings plans provided by various regulators.