Fresh off a national listening tour where he heard from financial advisory firms of varying sizes, Finra President and CEO Robert Cook says the regulatory authority is considering allowing planners to leave the industry and come back without being licensed a second time.
“We have new examination requirements that are coming out, which will be of interest to advisory firms as they think about bringing new people into the industry,” Cook said Wednesday at the Harvard Club in Manhattan. “We are migrating to a system that’s similar to doctors and lawyers in which you only have to pass the exam once in your career.”
Cook told a roomful of compliance professionals at SIFMA's Compliance and Legal Society monthly luncheon that if such a system is adopted,, advisors would only need to complete continuing education requirements annually after being licensed.
“We've heard from advisors in the industry who have taken leave for child care or elder care, for example, that taking the exam again is a burden and acts as a disincentive to them coming back,” Cook told Financial Advisor. “It's very preliminary, but we've heard people raise that concern enough, so we think we should take a look at it.”
On October 1, advisors will be permitted to participate in the SIE exam without being associated with a firm.
“This is targeting entry-level financial professionals,” Cook told a room filled with compliance professionals.
Another challenge Cook heard about in roundtable discussions with financial professionals across the country is smaller financial advisory firms not having many compliance resources.
In Response, Finra launched the Small Firm Help Line as part of Finra 360, a comprehensive review of the regulatory authority’s operations and programming.
“The helpline serves as a complement to your regulatory coordinator by offering another place for you to get assistance navigating Finra’s systems and resources,” Cook said. “It’s not a substitute for your regulatory coordinator, who remains your primary Finra contact for regulatory questions as well as questions specific to your firm.”
Larger firms, on the other hand, are concerned with regulatory gaps and unnecessary duplication created by multiple regulators, he said.
“We’re working collaboratively with other regulators like the SEC to reduce regulatory gaps and duplication,” said Cook.