FINRA Proposes Registration and Qualification Requirements for Certain Operations Personnel
Co-authored by Louis Froelich
The Financial Industry Regulatory Authority is seeking comment on a proposal to expand its registration requirements to include as qualified and registered persons certain “back-office” operations personnel of a member firm. Accordingly, FINRA is proposing a new registration category for “Operations Professionals,” which generally would include those persons who have decision-making and/or oversight authority over certain “covered functions” as specified in the proposed rule, such as activities relating to sales and trading support and the handling of customer assets. In addition to the licensing and exam requirements, FINRA also is proposing a continuing education requirement for such persons. FINRA believes these measures will enhance the regulatory structure surrounding a member firm’s back-office operations and will help ensure investor protection mechanisms are in place in all areas of a member firm’s business that could harm a customer, a firm, the integrity of the marketplace or the public. Comments are due to FINRA by July 12.
Click here to read FINRA Regulatory Notice 10-25.
