Brokers would be able to conduct continuing education training online rather than having to go to a test center under a rule change the Financial Industry Regulatory Authority Inc. filed with the Securities and Exchange Commission on Thursday.
The rule would
phase out training conducted at centers as well as in-house at brokerage firms. It applies to the regulatory portion of CE, which brokers must complete within 120 days of the second anniversary of their registration with the Finra, and again after every third anniversary.
The rule would not change the firm element of CE, which requires brokerages to conduct annual training programs.
Regulatory CE includes regulatory, compliance, ethical, supervision and sales practice topics. Moving the training to online delivery would reduce CE fees from $100 per session to $55.
The SEC must approve the rule. Finra told the SEC that it hopes to implement the CE changes starting Oct. 1.
“Given advances in web-based technology, Finra believes that there is diminishing utility in the test center and in-firm delivery methods,” the self-regulatory organization said in its filing notice. “Finra believes that the proposed rule change will improve members' compliance efforts and will allow registered persons to spend a greater amount of time on the review of CE materials and potentially achieve better learning outcomes, which will in turn enhance investor protection.”
