The Financial Industry Regulatory Authority (FINRA) recently issued
Regulatory Notice 10-25 in which it proposed expanding registration requirements in the securities
industry to include those individuals working in a broker-dealers’
The proposed new registration category for these individuals, called “Operations
Professionals,” will enhance oversight by requiring individuals
“engaged in, or supervising, activities relating to sales and trading
support and the handling of customer assets” to register with FINRA.
Those required to register as Operations Professionals will also be subject
to qualification examination and continuing education requirements.
FINRA has traditionally only required registration of individuals who
advise customers and effect securities transactions, such as brokers,
investments bankers, and traders. FINRA believes that the new registration
requirements will help ensure investor protection by enhancing the regulatory
structure of a firm’s support operations.
FINRA will consider any comments made to the proposal before submitting
the rule changes to the
Securities and Exchange Commission (SEC). The deadline for submission of comments is July 12, 2010.