The Financial Industry Regulatory Authority has gotten kudos for a proposed revamp of its registration rules that would create a two-tier examination system and allow more flexibility in obtaining and maintaining licenses.

The changes are seen as a way to encourage more new entrants into the industry and enhance career opportunities.

In comment letters filed with the SEC this month, industry groups said they strongly supported the proposal to create a “securities industry essentials” (SIE) exam—an entry-level, first-step exam that would cover industry basics.

“Top-off” exams would then be required for specific securities and principal licenses.

The goal—long supported by industry groups—is to eliminate redundancies in the various licensing exams.

Individuals taking the SIE exam would not need to be associated with a broker-dealer. They would, however, need to affiliate with a B-D to obtain full licenses and engage in the securities business.

Eliminating the need to affiliate with a firm would remove “unnecessary hurdles … for the next generations of financial service professionals,” said the Securities Industry and Financial Markets Association.

The change will help firms “identify and recruit candidates with a demonstrated entry-level interest and aptitude in the securities industry,” said Fidelity Investments.

The Financial Services Institute encouraged Finra to keep the SIE exam price low enough so as not to discourage new entrants.

Industry groups also lauded the proposal for allowing individuals to obtain and keep a license even when they don’t perform the specific role covered by the registration.

The FSI and SIFMA argue that allowing these permissive licenses will expand the pool of knowledgeable employees and create more flexible career opportunities.

“This approach will allow firms to quickly fill gaps created by personnel leaving or switching roles,” and let employees “focus on non-work issues such as family, without the pressure of losing the license they worked so hard to obtain,” FSI said.

But state regulators claim that the proposed permissive registration scheme “would eliminate any prohibition on the parking of registrations, a practice that could allow unqualified individuals to maintain FINRA registrations.”

The state regulator group, the North American Securities Administrators Association, supports other elements of the proposal.

Industry groups are also asking for a delay in the proposed March 2018 implementation date to allow for time to modify registration systems.

The proposal, which could still be amended, is now awaiting SEC approval.