Regarding FINRA continuing education requirements, who is responsible for the Regulatory Element?

The correct response emphasizes that the registered individual holds primary responsibility for the Regulatory Element of continuing education as mandated by FINRA. This requirement is designed to ensure that each registered person, including both representatives and associated persons, remains knowledgeable about developments in their industry, regulatory updates, and any significant changes that may impact their role.

Every registered individual must complete the Regulatory Element training within a certain period after their registration and subsequently every three years. This requirement is distinct from other education mandates, such as the Firm Element, which is the responsibility of the firm to help cultivate the overall knowledge and competence of its employees regarding their specific roles and the firm’s business model.

While firms do play a crucial role in the continuing education of their employees, particularly in creating and administering the Firm Element, they do not assume responsibility for the Regulatory Element, which is an individual obligation. This approach ensures that individuals take personal accountability for their industry knowledge, reflecting the expectation that they maintain the competency required for their roles.