How Do I Maintain My FINRA License?

🔄 How to Maintain Your FINRA License

Once you’ve passed your FINRA exam and obtained a license, it’s important to stay compliant with FINRA’s ongoing requirements to maintain your status as a registered representative. Here’s how you can maintain your FINRA license effectively:

1. Continuing Education (CE) Requirements 📚

• Regulatory Element: All registered representatives must complete the Regulatory Element of Continuing Education. This includes:
  • Firm Element: Tailored by your firm based on your role and activities. It includes training on industry regulations, compliance, and ethical standards.
  • Securities Industry Essentials (SIE): This is a continuing requirement for new industry professionals and may involve additional training and updates.
• Frequency:
  • The Regulatory Element is due every three years. Your firm will notify you of the deadlines.

2. Keep Your Registration Active 🔄

• Form U4: As long as you’re employed by a FINRA-member firm, your Form U4 (Uniform Application for Securities Industry Registration or Transfer) will stay active.
  • Update Your Form U4: If you change your employment or contact details, ensure you update your Form U4 through your firm.
• Employment Requirement: If you leave your firm, your registration could be deactivated. You must either find new employment or apply for re-registration.

3. Firm Sponsorship 🏢

• Keep Sponsorship with a FINRA-member Firm: As a registered representative, you must remain employed by a FINRA-member firm to maintain your license.
  • If you switch firms, ensure your new employer is a FINRA-member, and they file a new Form U4 on your behalf.

4. Reporting Requirements 📝

• Disciplinary Actions: You are required to disclose any legal or regulatory actions against you, including violations of securities laws, criminal charges, or civil litigation.
• Annual Compliance: Most firms require you to reaffirm compliance annually, including disclosures of personal trading accounts, conflicts of interest, and continuing education completion.

5. Requalification 📝

• Time Away from the Industry: If you leave the securities industry for more than two years, your registration may be deactivated.
  • Requalification: In this case, you may need to retake the exam to re-enter the industry.
• Inactive Status: You can apply for inactive status if you’re no longer actively working in the securities industry. However, if you return to work as a registered representative, you may need to meet certain requalification requirements.

6. Stay Informed of Industry Changes 📰

• Stay Updated on Industry Rules: Ensure you stay informed of any updates or changes in FINRA regulations, as well as new laws that impact the financial services industry. Regularly reviewing industry news and FINRA communications helps you stay compliant.

7. Reaffirm Your Status with Annual Filings 🔄

• Annual Renewals: Every year, ensure that your registration and associated filings, like Form U4, are renewed and up to date.
  • FINRA Annual Registration Fee: In some cases, an annual registration fee might be required, which your firm usually pays on your behalf.

📌 Final Notes

Maintaining your FINRA license requires a combination of continuous education, keeping your registration up to date, and staying informed about the latest regulations. By following these steps and ensuring compliance with ongoing requirements, you can maintain your license and continue to work in the securities industry.

If you have any specific questions about compliance or requirements, your Compliance Officer or firm’s Human Resources department can provide personalized guidance.