FINRA Series 6 Investment Company and Variable Contracts Products Representative ExaminationProfessional Conduct and Ethical ConsiderationsEasy
A registered representative (RR) receives a notice from FINRA stating that they are due for their Regulatory Element of Continuing Education (CE). The RR notes that the deadline is in three months. What is the RR's most appropriate action to ensure compliance?
- AComplete the Regulatory Element training within the specified three-month window.
- BAssume the firm will automatically schedule and enroll the RR in the required training.
- CDelegate the responsibility of scheduling and completing the training to their administrative assistant.
- DContact FINRA to request an extension, citing a busy work schedule.
Show answer & explanationAnswer & explanation
Correct answer: A. Complete the Regulatory Element training within the specified three-month window.
Registered representatives are personally responsible for completing their Regulatory Element CE within the prescribed window (typically 120 days from their anniversary date or notification) to maintain their active registration. Failure to do so will result in an inactive status.
Why the other options are wrong
- B. While firms often facilitate CE, the ultimate responsibility for completion rests with the individual RR.
- C. CE training cannot be delegated; the RR must personally complete and attest to it.
- D. Extensions are rarely granted and only under specific hardship circumstances, not just a busy schedule.
Regulatory Element CE Responsibility
The personal obligation of a registered representative to complete the FINRA-mandated Regulatory Element of Continuing Education within the specified timeframe to maintain their active registration.
- Required periodically (typically every three years).
- Failure to complete results in inactive status and inability to conduct business.
- Content covers regulatory requirements and ethical sales practices.
- Ultimate responsibility for completion rests with the individual RR, not the firm.
Memory trick: Regulatory CE is due? Complete it yourself, make it true.