FINRA Proposes Licensing of Operations Personnel
FINRA is proposing to require the registration of operations personnel. Such licensing would include qualification exams and continuing education. The new registration category would apply to “persons with decision-making and/or oversight authority” with respect to a wide range of covered activities involving sales and trading support and handling of customer assets. The registration requirements would apply “irrespective of … employing entity,” meaning that third party service provider personnel that provide covered operations functions would also have to register. Following adoption, FINRA is proposing a 6-9 month transition period.
OUR TAKE: Although the proposal requires SEC approval, we expect ultimate adoption in some form. This would significantly expand the number of registered persons at broker-dealers and significantly affect third party service providers.