The Financial Industry Regulatory Authority's Board has approved plans to shorten wait times to retake a FINRA qualification exam as well as amend FINRA's Codes of Arbitration Procedure to provide parties with greater input into replacing arbitrators.
The proposals were approved at FINRA's March board meeting. More details on the proposals will be provided once they are filed with the SEC, a FINRA spokesperson told ThinkAdvisor on Thursday.
As it stands now, under FINRA Rule 1210, "any person who fails to pass a qualification examination prescribed by FINRA shall be permitted to take that examination again after a period of 30 calendar days has elapsed from the date of such person's last attempt to pass that examination, except that any person who fails to pass an examination three or more times in succession within a two-year period shall be prohibited from again taking that examination until a period of 180 calendar days has elapsed from the date of such person's last attempt to pass that examination."
The waiting periods for retaking a failed exam apply to the Securities Industry Essentials and the representative and principal exams specified under Rule 1220.
"By shortening exam waiting periods, embracing electronic delivery of regulatory requests, streamlining operational requirements and updating alternative investment reconciliation requirements, we are reducing unnecessary burdens on member firms and supporting more efficient market operations," Scott Curtis, chair of the FINRA Board of Governors, said in a statement. "At the same time, our enhancements to arbitration procedures demonstrate our focus on ensuring fair processes for all participants."
The broker-dealer self-regulator's board also approved a plan to deliver electronically requests for information and testimony to member firms through FINRA Gateway, the regulator's compliance platform.
The rule updates are part of the FINRA Forward initiative, which recently came under scrutiny during a hearing of the House Subcommittee on Capital Markets.
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