Securities Industry Essentials (SIE) Exam

News

Breaking News on the Securities Industry Essentials (SIE) Exam!

The Highly Anticipated SIE Outline is Now Available

On January 12, FINRA released the highly anticipated outline to the Securities Industry Essentials (SIE) Exam which is scheduled for roll out in October 2018. We are excited to share the outline with our valued clients below.

We'll be consistently providing you with SIE updates so you remain in the know about industry changes concerning the SIE. We will be there every step of the way with the highest quality content, classes, and materials to ensure you pass your SIE and qualification exam(s).

In response to NASAA’s concern about "permissive registration":

The rule allows firms to register other associated persons, such as those working in accounting or technology, regardless of their job function. FINRA does not believe that there is any meaningful distinction between the current categories of associated persons and other categories of associated persons for purposes of permissive registration.

Firms require substantial lead time to identify associated persons with the necessary qualifications and registrations. By allowing firms to maintain a larger roster of associated persons who are permissively registered, firms will have greater flexibility in managing unanticipated needs for qualified personnel. FINRA believes that allowing firms to permissively register associated persons in anticipation of future needs for qualified personnel is consistent with FINRA’s authority under the Exchange Act.

Clarification on the supervisory responsibility of permissive registration:

  • The direct supervisor of an individual who solely maintains a permissive registration is not required to be a registered person.
  • A registered supervisor is only required to periodically contact the direct supervisor of such an individual to verify that the individual is not acting outside the scope of his or her assigned functions.
  • For purposes of compliance with FINRA Rule 3110(a)(5), FINRA believes that the designated supervisor of an individual who solely maintains a permissive registration as a principal should be a registered principal.
  • A registered principal is in the best position to assess whether such permissively registered principal is performing activities normally performed by principals.

Implementation Date:

Subject to Commission approval and the timing of such approval, FINRA originally intended to implement the proposal in March 2018. Several commenters expressed concerns with the proposed implementation date.

  • CAI and Wells Fargo requested that firms be provided at least 18 months to prepare for the proposed rules.
  • Fidelity requested that FINRA work with the industry to determine a reasoned plan for implementation, such as a staggered implementation approach.
  • FSI stated that FINRA should consider working with firms on the implementation date and the operational concerns.
  • Nationwide asked for sufficient time to implement the necessary process and address operational issues. ARM suggested a November 2018 implementation date.
  • SIFMA stated that an implementation date of no earlier than Fall 2018 is more appropriate and that FINRA should provide firms at least 12 months to prepare.

Considering the comments, FINRA intends to move the implementation date to the fourth quarter of 2018. Subject to Commission approval, FINRA will announce the implementation date of the proposed rules in a Regulatory Notice”.

Exam Scoring:

The exam will be pass/fail and individuals who pass will not receive a numerical score. FINRA is exploring options for providing appropriate performance feedback to failing candidates and their firms.