Continuing Education (CE) Requirements
Registration is not a one-time event. Once you're registered, the Financial Industry Regulatory Authority (FINRA) requires ongoing continuing education (CE) to ensure securities professionals stay current with rules, products, and industry practices. FINRA establishes a two-part CE system.
The Two Components of CE
FINRA's continuing education program has two distinct elements that work together:
| Feature | Regulatory Element | Firm Element |
|---|---|---|
| Who administers | FINRA | The member firm |
| Content | Compliance, regulatory, ethical, and sales practice standards | Firm-specific training based on the firm's business, products, and regulatory developments |
| Frequency | Annually (changed from every 3 years to annual as of 2023) | At least annually |
| Delivery | Online through FINRA's CE system | Firm designs and delivers its own program |
| Who participates | All registered persons | All registered persons |
| Consequence of non-completion | Registration becomes CE inactive | Firm subject to regulatory action |
| Needs analysis | N/A | Firm must conduct a written needs analysis annually |
Exam Tip: Gotchas
- The Regulatory Element is now annual (not every 3 years as it was before 2023). This is a frequently tested change.
Regulatory Element - Details
- Content is tailored to the individual's registration category (a principal sees different content than a representative)
- Courses are assigned based on active registrations and listed in the individual's FinPro account
- Must be completed by December 31 each year (first-time registrants complete it by December 31 of the year following their registration)
- Covers rule changes, regulatory developments, and ethical standards relevant to each registration type
Consequences of Non-Completion
- Your registration becomes CE inactive
- You cannot function in any capacity requiring registration while inactive
- The firm must immediately restrict your activities
- Status is restored once CE is completed, but you cannot work in a registered capacity until then
Exam Tip: Gotchas
- CE inactive means you cannot perform any registered activities, not just limited ones.
- Failing to complete CE does not terminate registration. It makes it inactive until completed.
Firm Element - Details
- The firm must maintain a formal CE program with documented training plans
- A written needs analysis must be conducted annually to determine what training is needed
- The needs analysis must consider:
- The firm's size, organizational structure, and scope of business
- Regulatory developments
- Completion of the Regulatory Element by registered persons
- The firm must maintain records of its CE program, including the needs analysis and participation records
- Anti-money laundering (AML) compliance training and the annual compliance meeting can count toward Firm Element requirements
Think of it this way: The Regulatory Element is like a standardized annual check-up that FINRA runs for every registered person. The Firm Element is like an employer-designed training program tailored to what that specific firm does. Both happen every year, but they come from different sources and cover different ground.
Exam Tip: Gotchas
- The Firm Element requires a written needs analysis. Just providing training without a documented analysis is insufficient.
- Since January 1, 2023, the Firm Element applies to all registered persons. The firm no longer selects a subset of "covered persons." Both the Regulatory Element and the Firm Element are required for every registered person.