The financial services industry relies on knowledgeable, compliant professionals. To support this standard, FINRA requires continuing education for all registered individuals. FINRA’s CE program consists of two components: the Regulatory Element, which focuses on rule changes and regulatory updates, and the Firm Element, which is tailored to each firm’s specific risks, roles, and business activities.
This FAQ answers common questions about Firm Element continuing education and outlines how firms can simplify compliance while delivering meaningful, role-based training.
What Is Firm Element Training?
Firm Element training is a FINRA requirement designed to help registered financial professionals stay current with industry developments, firm-specific risks, and regulatory expectations. Firms may develop training internally or source it externally through providers like Securities Training Corporation.
This annual training often includes:
- Regulatory updates and changes in securities laws
- Product and role-specific education
- Professional responsibility and ethical standards
- Guidance based on FINRA Annual Regulatory Oversight Report
- The SEC’s Examination Priorities Report
- Other regulatory guidance
Does My Firm Need a Written Firm Element Training Plan?
Yes. FINRA requires firms to maintain a written Firm Element training plan that outlines program objectives, delivery methods, and covered topics. While FINRA does not prescribe exact subject matter, firms must perform an annual needs analysis to determine appropriate training based on job roles, products offered, and firm-specific risks.
Training plans should be flexible enough to address individual needs while ensuring firm-wide compliance.
Who Must Complete Firm Element Continuing Education?
As of January 1, 2023, FINRA requires all registered individuals, including those holding only permissive registrations, to complete Firm Element training.
Firms may also count certain compliance-related activities toward Firm Element requirements, including:
- Anti-money laundering training
- Mandatory annual compliance meetings
This flexibility allows firms to align Firm Element CE with existing compliance initiatives.
What Is the Annual Compliance Meeting?
The Annual Compliance Meeting (ACM) is a required session for all registered persons. It may be conducted in person, virtually, or on demand.
The purpose of the ACM is to:
- Review compliance responsibilities
- Discuss regulatory updates
- Reinforce firm policies and procedures
Firms must retain proof of attendance for recordkeeping and audit purposes.
Can You Stay Qualified If You Leave the Industry?
Yes. FINRA introduced the Maintaining Qualifications Program (MQP) to help professionals remain qualified during career breaks. This program is especially beneficial for individuals who step away from the industry temporarily.
Eligible individuals may:
- Maintain qualifications for up to five years
- Avoid requalifying by exam or waiver
- Complete annual continuing education requirements
To participate, individuals must enroll in MQP, pay a $100 annual fee, and remain current with CE. This program supplements, rather than replaces, the existing two-year grace period.
What Are the Firm Element Needs Analysis Quarterly Highlights?
The Firm Element Needs Analysis Quarterly Highlights are published by the Securities Industry and Financial Markets Association and the Regulatory Council on Continuing Education. These reports help firms identify emerging risks and trending topics to consider when building or updating Firm Element training plans.
What Changed in the Firm Element Rules as of December 2023?
In Q4 2023, FINRA emphasized updates across several Firm Element focus areas, including:
- Firm operations
- Outside Business Activity and Private Securities Transactions
- Senior Investors
- Communication and Sales
- Regulation Best Interest
- Annuity Product Sales
- Market integrity
- Market Access Rule and Best Execution
- Books and records
- Cybersecurity
- Complex products
- Municipal securities
- Fraud prevention
- Trade reporting
These updates reinforce the importance of ongoing, role-based training aligned with evolving regulatory expectations.
How Can Firms Make Firm Element Planning Easier?
Managing Firm Element CE can be time-consuming, especially for firms with diverse roles and risk profiles. STC’s Firm Element training solutions are designed to simplify planning while maintaining compliance.
Key benefits include:
- A broad course catalog with over 100 Firm Element CE courses
- Content developed and regularly updated by industry experts
- Custom course development to address firm-specific risks
- SCORM-wrapped courses compatible with most LMS platforms
- Dedicated implementation and ongoing customer support
STC continuously updates and expands its Firm Element offerings to reflect regulatory changes and client needs. Firms of any size can access training 24/7 through flexible subscription options.
To explore available options, visit the STC Firm Element CE Catalog.
FINRA Firm Element CE FAQs
Q: What is FINRA Firm Element CE?
A: FINRA Firm Element CE is a mandatory annual training requirement designed to keep financial professionals fully updated on regulatory expectations, securities laws, and firm-specific risks. As a vital component of the overarching FINRA CE program, Firm Element training ensures your team operates with the highest ethical standards and industry knowledge. By completing this targeted education, professionals not only maintain their licenses but also actively protect their firms and clients from emerging market risks.
Q: Do firms need a written Firm Element training plan?
A: Yes, FINRA strictly requires firms to maintain a written training plan. You must conduct an annual needs analysis to determine the absolute best topics for your team based on their specific job roles, the products you offer, and your unique business risks. A well-documented plan is the most effective way to guarantee comprehensive broker-dealer compliance training while easily satisfying regulatory audit requirements.
Q: Who must complete FINRA continuing education?
A: As of January 1, 2023, FINRA mandates that all registered individuals—including those holding only permissive registrations—must complete Firm Element training annually. To maximize efficiency, your firm can seamlessly integrate certain existing compliance activities, like mandatory anti-money laundering (AML) training and annual meetings, directly into your Firm Element CE requirements.
Q: What is the purpose of the Annual Compliance Meeting?
The Annual Compliance Meeting (ACM) is a required, highly valuable session for all registered persons to review core compliance responsibilities and reinforce firm policies. Whether hosted in-person, virtually, or on-demand, the ACM provides the perfect opportunity to discuss critical regulatory updates. Always remember to retain precise attendance records to prove compliance during regulatory examinations.
Q: Can professionals maintain qualifications if they leave the industry?
Absolutely. FINRA offers the Maintaining Qualifications Program (MQP), an exceptional solution that helps professionals remain qualified for up to five years during a career break. Instead of facing the immense burden of retaking exams, eligible individuals simply enroll in the MQP, pay a small $100 annual fee, and keep their FINRA continuing education current.
Q: How can broker-dealers simplify Firm Element CE planning?
A: Managing compliance training across diverse roles can be complex, but partnering with an industry leader makes it effortless. Securities Training Corporation (STC) provides the ultimate Firm Element training solution, featuring an expansive catalog of over 100 expertly crafted, frequently updated courses. Our SCORM-compatible modules easily integrate with your existing learning management system, offering 24/7 access and dedicated support. Elevate your compliance strategy and protect your firm by exploring our comprehensive training solutions today.
