What are FINRA's continuing education requirements?
FINRA Rule 1240 requires every registered representative and principal of a US broker-dealer to complete the Regulatory Element annually by December 31 for each registration held, or be designated CE inactive. Each member firm must also run a Firm Element program, based on an annual needs analysis and written training plan, and keep records of content and completion. The Maintaining Qualifications Program lets people who leave keep their qualifications for up to five years through annual CE.
By the Knowledge Foundry editorial team. How we write and check these pages
- Published
- Updated
- Reading time
- 8 min
- Jurisdiction
- United States (federal, self-regulatory)
- Regulator
- Financial Industry Regulatory Authority (FINRA), under Securities and Exchange Commission (SEC) oversight
Key takeaways
- Since January 1, 2023, the Regulatory Element is due every year by December 31, with content specific to each registration category a person holds. The 2026 deadline is December 31, 2026.
- Missing the Regulatory Element makes the person CE inactive: they must stop all registered activity, and a registration inactive for two consecutive years is administratively terminated.
- The Firm Element requires each firm to evaluate and prioritize training needs at least annually, write a training plan, and keep records of content and completion for all registered persons.
- Firms may count AML training under Rule 3310(e) and the annual compliance meeting under Rule 3110(a)(7) toward the Firm Element.
- The Maintaining Qualifications Program (MQP) lets eligible people who terminate a registration keep that qualification for up to five years by completing annual CE.
What is FINRA and why does it set training rules?
FINRA is the self-regulatory organization for US broker-dealers, and its rules bind member firms and their registered people once the SEC approves them. For readers outside the United States, FINRA's role is closer to a statutory professional body with delegated rulemaking than to a government regulator: it registers and qualifies individuals, runs the qualification exams, and administers the securities industry's continuing education (CE) program.
The core rule is FINRA Rule 1240 (Continuing Education). It has two mandatory parts, the Regulatory Element and the Firm Element, and a voluntary program for people leaving the industry. FINRA administers the program with other self-regulatory organizations and the Securities Industry/Regulatory Council on Continuing Education (CE Council).
The current structure comes from amendments the SEC approved on September 21, 2021 and FINRA announced in Regulatory Notice 21-41. The MQP took effect on March 15, 2022; the annual Regulatory Element and Firm Element changes took effect on January 1, 2023. The rule was last amended with effect from April 30, 2024. This page states the position as at September 2026.
What is the Regulatory Element?
The Regulatory Element is FINRA-delivered online training that every registered person must complete annually by December 31 for each representative or principal registration they hold. Before 2023 it was taken every three years; Notice 21-41 moved it to an annual cycle with content tailored to each registration category.
"The content of the Regulatory Element shall be appropriate to each representative or principal registration category. A covered person shall complete Regulatory Element content for each registration category that he or she holds."
- Timing for new registrants. A person registering for the first time on or after January 1, 2023 must complete the Regulatory Element by December 31 of the calendar year after the year they register, then every year.
- Delivery. Content is web based and completed through the Financial Professional Gateway (FinPro Gateway).
- Topics. FINRA and the CE Council publish each year's learning topics by October 1 of the prior year. The 2027 topics have been published.
- Firm deadlines. A firm may require its people to finish earlier in the year than December 31.
- Contact person. Each firm must designate a Regulatory Element contact person to receive completion notifications.
FINRA's August 3, 2026 reminder confirms that the 2026 Regulatory Element courses have been assigned and must be completed by December 31, 2026.
What happens if a registered person misses the Regulatory Element?
The person is automatically designated CE inactive and must stop all activity requiring registration until they complete every outstanding Regulatory Element. Under Rule 1240(a)(2), an inactive person may not accept or solicit business or receive compensation for securities transactions, although they may receive trail commissions on earlier transactions unless the firm's policy prohibits it.
A registration that stays inactive for two consecutive years is administratively terminated, and the person must requalify under Rules 1210 and 1220 to return. FINRA may grant extra time on written application showing good cause; its guidance says the circumstances must be substantive and beyond the person's control. Separately, Rule 1240(a)(3) lets FINRA assign additional CE, due within 120 days, to a person who becomes subject to a statutory disqualification, a suspension or a fine of $5,000 or more.
What does the Firm Element require of member firms?
The Firm Element requires each member firm to maintain a continuing and current education program for all its registered persons, planned from an annual needs analysis and a written training plan. Rule 1240(b)(2)(A) sets the planning standard:
"At a minimum, each member shall at least annually evaluate and prioritize its training needs and develop a written training plan. The plan must take into consideration the member's size, organizational structure, and scope of business activities, as well as regulatory developments and the performance of registered persons in the Regulatory Element."
- Content. Programs must, at a minimum, cover topics related to the role, activities or responsibilities of the registered person and to professional responsibility.
- Supervisors. If the needs analysis shows a need for supervisory training, it must be in the plan.
- Records. The firm must administer the program in line with its plan and keep records documenting program content and each person's completion.
- Credit for other training. AML training under FINRA Rule 3310(e) and the annual compliance meeting under Rule 3110(a)(7) may count toward the Firm Element.
- Participation. Registered persons must take all appropriate and reasonable steps to participate as the firm requires.
- Specific training. FINRA may require a firm, or a group of firms, to deliver specific training.
The Firm Element sets no minimum hours. FINRA points firms to the CE Council's quarterly Firm Element Focus for topics to consider, and offers an optional course catalog, the Financial Learning Experience (FLEX), which firms may use but are not obliged to. The AML training obligation behind Rule 3310(e) is explained in Bank Secrecy Act AML training requirements.
What is the Maintaining Qualifications Program?
The Maintaining Qualifications Program (MQP) lets eligible people who terminate a representative or principal registration keep that qualification for up to five years by completing CE each year, instead of requalifying by exam. Without it, a qualification lapses if the person does not reregister within two years.
| Condition | Requirement |
|---|---|
| Prior registration | Registered in the category for at least one year immediately before it was terminated |
| Election | At the time of the Form U5 filing or within two years of termination, completing any CE missed in between |
| Annual CE | Complete the assigned learning plan (Regulatory Element plus a Practical Element on products, services and strategies) by the due date each year |
| Fee | An annual $100 participation fee, regardless of the number of qualifications enrolled |
| Disqualifying events | Two consecutive years CE inactive, or a statutory disqualification before or during participation |
Do other US continuing education rules apply alongside FINRA's?
Yes, for some people. Individuals who are also investment adviser representatives (IARs) may be subject to a separate IAR CE requirement adopted state by state under a model rule of the North American Securities Administrators Association (NASAA). FINRA's CE page notes that IARs can apply Regulatory Element training toward the IAR Products and Practice requirement. NASAA members have also approved a model Exam Validity Extension Program, similar to the MQP, for the Series 63 and Series 65 exams, which applies only in states that adopt it. Firms should check the rules of each state where their people are registered.
How can a firm map Rule 1240 to evidence?
Treat each paragraph of the rule as an obligation with an owner, an output and a record a FINRA examiner could review. The table is illustrative, not FINRA guidance. For the general method, see how to map training to compliance obligations.
| Obligation | Example learning outcome | Evidence |
|---|---|---|
| 1240(a)(1) annual Regulatory Element | Every registered person completes the content for each registration held by the firm's internal deadline. | FINRA Gateway completion report reconciled to the registration list, with an escalation log for stragglers. |
| 1240(b)(2)(A) annual needs analysis | The firm identifies training needs from its business mix, regulatory change and Regulatory Element performance. | Dated needs analysis referencing products, supervisory findings and published Regulatory Element topics. |
| 1240(b)(2)(A) written training plan | Training is assigned by role, with supervisory training where the analysis requires it. | Approved written plan and a role based training matrix. |
| 1240(b)(2)(B) minimum content | Registered persons apply product and professional responsibility rules to realiztic client scenarios. | Scenario based assessments with pass marks, linked to the plan topic. |
| 1240(b)(2)(C) records | Content and completion are retrievable for any person and year. | Versioned course content with completion records per person, forming an audit trail. |
| 1240(b)(2)(D) credit for AML and compliance meeting | AML and annual compliance meeting training is counted only where it serves the plan. | Plan entries cross referencing Rule 3310(e) AML training and Rule 3110(a)(7) meeting records. |
For preparing records before an examination, see how to prepare training records for an audit. For a board level view of CE status, see how to report training compliance to the board.
How does Knowledge Foundry approach this?
Knowledge Foundry models Rule 1240 obligations, the firm's products and its policies as a knowledge framework, then links Firm Element learning outcomes and assessments to them. When FINRA publishes new Regulatory Element topics or a rule changes, the affected parts of the training plan can be found from those links. See how this applies in financial services.
Frequently asked questions
How many hours of FINRA continuing education are required each year?
Rule 1240 does not set an hours requirement. The Regulatory Element is a set of assigned online courses per registration category, and the Firm Element is sized by each firm's own needs analysis and written training plan. Other regulators, such as states for investment adviser representatives, may set credit based requirements.
Can a firm set an earlier Regulatory Element deadline than December 31?
Yes. Rule 1240(a)(1) states that nothing in the paragraph prohibits a member from requiring its covered persons to complete their Regulatory Element at any time during the calendar year. FINRA Gateway lets firms set and display an earlier completion date.
Does the Firm Element apply to permissively registered staff?
Yes. Since January 1, 2023 the Firm Element applies to any person registered with a member, including people who are permissively registered as a representative or principal under Rule 1210.02, such as operations or compliance staff who hold a registration their role does not strictly require.
Does the MQP remove the two-year qualification period?
No. FINRA says the MQP does not eliminate the two-year qualification termination period. It is an optional alternative: eligible participants who keep up annual CE and pay the annual fee can reregister within five years of termination without retaking the exam or obtaining a waiver.
Sources
- Rule 1240: Continuing Education, FINRA
- Continuing Education (CE), FINRA
- Regulatory Notice 21-41: FINRA Amends Rules 1210 and 1240 to Enhance the Continuing Education Program for Securities Industry Professionals, FINRA
- Information Notice, August 3, 2026: FINRA Reminds Registered Persons and Firms of Continuing Education Requirements, FINRA
- The Maintaining Qualifications Program (MQP), FINRA
- Rule 3310: Anti-Money Laundering Compliance Program, FINRA
This page is general information, not legal or compliance advice. Check the primary sources above and obtain advice for your circumstances. See our editorial standards.