The objective of the revamp is to eliminate redundancies in the various licensing exams, encourage more new entrants into the industry and develop existing talent and enhance career opportunities.

The changes were broadly supported by the securities industry.

State regulators, however, objected to expansion of the permissive registrations. They worried that this provision would let unqualified individuals park licenses.

But Finra countered that its current rules allow firms to permissively register people who perform legal, compliance, internal audit and back-office responsibilities, and by extending this flexibility to employees in technology, accounting and other areas the industry will be able to build a deeper pool of talent.

Besides, Finra argued in a letter to the SEC last month, registrations are “not a substitute for experience.” Under the current rules, for example, an individual with no prior experience can pass the Series 7 and Series 24 examinations and “function as a principal immediately,” Finra said.