The Regulatory Element Program consists of periodic computer-based training on regulatory, compliance, ethical, supervisory subjects and sales practice standards. Registered persons are required to participate and complete a designated Regulatory Element within a 120-day period that commences with the second anniversary of their initial securities registration, and reoccur every three years thereafter for as long as they remain in the securities business.
There are currently four different Regulatory Element Programs, the Supervisor Program for Registered Principals and Supervisors (S201), the Series 99 Program for Operations Professionals (S901), the Series 6 Program for Investment Company Products/Variable Contracts Representatives (S106), and the General Program for Series 7 Registered Persons and all other registrations (S101). Content is derived from rules and regulations as well as standards and practices widely accepted within the industry. Although the specific requirements of certain rules may differ slightly among SROs, the Programs are based on standards and principles applicable to all.
The Programs lead participants through scenarios depicting situations faced by registered persons in the course of their business. Participants review cases in categories such as communications with the public, ethics, anti-money laundering, insider-trading, product knowledge, and for the S201 only, supervision. With respect to the S101 and S901 programs, in the fourth module, participants select a topic that most closely resembles their job function.
The formats of the scenarios are computer interactive text-based featuring embedded story artifacts and educational tools in the form of glossary terms and resources. After reading the scenario, participants must demonstrate their understanding of the issues by choosing the most appropriate responses(s) to questions concerning the facts in the scenario. The Programs assess the participant's understanding of the topic. If the participant does not show proficiency with the subject matter, the participant must try again with another scenario in the same module. The participant must successfully complete one scenario in the module before advancing to the next module. The Programs provide immediate feedback as participants work through the scenario questions.
To prepare for the Regulatory Element, you can view the content outlines, an orientation, and a sample case.
FINRA Online Learning
The FINRA online learning programs address a range of training topics for compliance personnel, registered representatives, administrative and operations staff, and those with supervisory responsibilities. The programs are available as e-learning courses, webinars, webcasts and podcasts. Some of programs offer completion tracking and deliver virtual compliance training that may be suitable for Firm Element Continuing Education or Regulatory Element preparation.
Options Institute at CBOE
The Options Institute at CBOE.com offers free tutorials that explain the basics of options including terminology and strategies. The tutorials are self-paced and include short, multiple-choice quizzes. The terminology is accessible through the Options Dictionary, which is available while taking the tutorial.
MSRB Education Center
This set of resources seeks to educate investors, state and local governments, and others interested in learning about the $3.6 trillion municipal securities market. A multimedia library of information explains how the market works and how participants can make more informed decisions.