FINRA Series 6 Investment Company and Variable Contracts Products Representative ExaminationProfessional Conduct and Ethical ConsiderationsMedium
A registered representative is attending a Continuing Education (CE) session. The session focuses on new anti-money laundering (AML) regulations. Which component of the FINRA CE requirements does this session fulfill?
- AAnnual Compliance Meeting
- BRegulatory Element
- CFirm Element
- DProfessional Development
Show answer & explanationAnswer & explanation
Correct answer: B. Regulatory Element
The FINRA Continuing Education program has two main components: the Regulatory Element and the Firm Element. The Regulatory Element is administered by FINRA and covers regulatory requirements and ethical standards, including topics like anti-money laundering, suitability, and communications with the public. This session directly addresses new AML regulations.
Why the other options are wrong
- A. The Annual Compliance Meeting is a separate requirement, often covering various compliance topics, but it's not one of the two core CE 'elements'.
- C. The Firm Element is developed by the firm and focuses on product-specific training, sales practices, and new regulations relevant to the firm's business.
- D. Professional Development is a broad term and not a specific component of FINRA's mandatory CE program.
FINRA CE - Regulatory Element
One of two components of FINRA's Continuing Education program, focusing on broad regulatory requirements and ethical standards relevant to registered persons.
- Administered by FINRA.
- Must be completed periodically (e.g., within 120 days of the 2nd anniversary of registration and every 3 years thereafter).
- Covers topics like AML, suitability, ethics, and supervision.
- Content is standardized across the industry.
Memory trick: CE has two parts, clear as day: Regulatory rules, and Firm's own way.