The strength of the financial services industry is built on its competent, informed professionals. To maintain this standard, FINRA requires continuing education for all registered individuals. This comprises two key parts: the Regulatory Element, focusing on critical rule changes and updates for each registration category, and the Firm Element. In this article, we’ll answer common questions about Firm Element training and provide valuable insights into training that makes compliance easier for financial services teams.
What is Firm Element training?
Firm Element training is a FINRA requirement aimed at keeping registered financial professionals on top of their game. Whether produced by the broker-dealer or sourced externally from providers such as Securities Training Corporation, this annual training keeps you in the loop on industry changes and new developments. It’s extremely useful for financial professionals, offering insights into new product training and helping them stay current with changes in securities laws and FINRA regulations. Plus, FINRA recently updated the minimum criteria for Firm Element training, placing more emphasis on topics related to professional responsibility and the duties of a registered person.
Does my firm need a written Firm Element training plan?
Yes, a written training plan is necessary, and it should detail the program specifics, objectives, and other relevant information. While FINRA doesn’t specify what topics you should include, it does suggest certain focus areas. Firms must do an annual needs analysis to identify training requirements and keep employees updated on job- and product-related subjects. Firms can choose various topics that cater to each individual’s unique needs.
Who needs to complete the Firm Element Continuing Education?
As of January 1, 2023 FINRA requires all registered individuals, including those who only hold a permissive registration (i.e., those employed by a broker-dealer but not requiring registration) to complete the training. Firms can count any training related to their anti-money laundering compliance program and their mandatory annual compliance meeting towards an individual’s annual Firm Element requirement.
What is the Annual Compliance Meeting about?
The ACM is a mandatory meeting for all registered persons which can be attended in person, remotely, or on demand. Essentially, the ACM gives registered persons regular opportunities to discuss compliance issues, and helps firms ensure their employees stay updated on regulatory changes or modifications in firm policies. Proof of attendance at these meetings must be kept for record-keeping purposes.
Can you stay qualified even if you leave the industry?
FINRA has updated its continuing education and registration rules to better accommodate individuals, especially women and underrepresented minorities, who may need to step away from the industry for a while. With these changes, eligible individuals can keep their qualifications for any terminated registration categories through the new Maintaining Qualifications Program (MQP).
If you’re a registered person leaving a member firm, you can keep your qualifications for up to five years without having to requalify by exam or get an exam waiver. Here’s how:
- Join the MQP
- Pay the annual program fee of $100
- Keep up with your annual CE requirement
Remember, this doesn’t do away with the existing two-year grace period before you must requalify by examination after leaving a job. Instead, the MQP gives you an alternative way to stay updated on your regulatory and securities knowledge for up to five years after ending your registration(s).
What is the Firm Element Needs Analysis Quarterly Highlights?
This is a guide published by the Securities Industry/Regulatory Council on Continuing Education (Council) for financial professionals can use to identify some of the topics to include in Firm Element training plans. You can take advantage of this resource here.
What’s new in the Firm Element rules as of December 2023?
In Q4 2023, there were key updates in three Firm Element categories:
Firm Operations |
Sales and Trading |
Market Integrity |
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How can my firm make Firm Element planning easier?
If you’re on the hunt for Firm Element solutions, STC has you covered! With a robust process to keep registered persons in compliance, STC’s Firm Element training offers important benefits:
- An Impressive Course Catalog: Choose from over 100 courses covering the latest industry trends and compliance topics to meet your CE requirements.
- Reliable Course Content: Crafted by top industry professionals, our course content is regularly updated to reflect the most recent regulatory changes. You can trust you’re getting the best.
- Complete Customization: Our team of content experts is ready to create new courses swiftly and effectively, freeing up your time for other important tasks.
- Simple and User-Friendly: With over 20 courses available in SCORM-wrapped courseware, you can easily deploy training on your own LMS. Plus, our dedicated implementation team ensures a smooth training experience for your employees.
- Unmatched Support: Our expert team remains ready to assist customers and guarantee an exceptional learning experience.
STC is always a step ahead! We regularly refresh our courses and craft new ones, keeping in line with our clients’ needs and the ever-evolving regulatory landscape. No matter the size of your company, you can enjoy 24/7 access to our training packages, with flexible options for single or multi-year subscriptions.
For a glance at our current Firm Element courses, why not check out our course catalog? Here’s the link: STC Firm Element CE Catalog.
