FINRA Rule 1240 requires every registered representative and principal to complete the Regulatory Element of continuing education once each calendar year, with a hard deadline of December 31. The training is delivered online through FINRA’s CE platform, is tailored to your registration category, and must be finished for each category you hold. Miss the deadline and your registration goes CE Inactive on January 1.
Who Is Covered
The rule applies to every “covered person,” defined as anyone registered or registering with FINRA as a representative or principal, including those holding a permissive registration and individuals designated as eligible for an exam waiver.1FINRA. FINRA Rule 1240 – Continuing Education In practice that sweeps in General Securities Representatives (Series 7), Investment Company Representatives (Series 6), supervisory principals, operations professionals, research analysts, and everyone else whose name appears on a firm’s registration records because of a qualification exam.
Permissive registrations are worth flagging because people sometimes assume they fall outside the rule. A permissive registration under Rule 1210.02 lets a firm register someone whose current duties do not strictly require it. Those individuals are explicitly included in the covered-person definition and owe the same annual training as everyone else.1FINRA. FINRA Rule 1240 – Continuing Education
The December 31 Deadline
Every covered person must finish the Regulatory Element by December 31 for each registration category they hold.2FINRA. Continuing Education (CE) The platform is available year-round through FinPro, so the work can be done any time in the cycle. If you hold multiple registrations, expect a learning plan for each one.
First-year registrants get a grace period. If you register with FINRA for the first time, your initial Regulatory Element deadline is December 31 of the calendar year after the year you became registered. Someone who passes the Series 7 and registers in March 2026, for example, has until December 31, 2027, to complete the first annual Regulatory Element, and then must complete it by every December 31 that follows for as long as the registration remains active.1FINRA. FINRA Rule 1240 – Continuing Education
What the Training Covers
The Regulatory Element focuses on significant rule changes, ethical obligations, and regulatory developments relevant to each registration category.2FINRA. Continuing Education (CE) Content is organized around your role. The S101 program is assigned to representatives; the S201 is designed for supervisors and principals. Each is structured around four modules covering common industry topics and current regulatory concerns.
The S101 includes a personalized module (Module D) where you choose the content area most relevant to your daily work from seven categories: Series 6 retail sales, Series 7 retail sales, institutional sales, trading, operations, investment banking, and research.3Financial Industry Regulatory Authority (FINRA). Content Outline for the S101 Regulatory Element Program Modules use scenario-based questions drawn from realistic fact patterns rather than rote memorization, and the curriculum is updated to reflect new legislation and shifting enforcement priorities.
Fee
FINRA charges a $25 fee for each individual who completes the Regulatory Element, effective for the period from January 1, 2026, through December 31, 2027.4FINRA. Section 4 – Fees Whether the firm absorbs the fee or passes it along to you depends on firm policy.
What Happens If You Miss the Deadline
Miss December 31 and your registration flips to CE Inactive on January 1 through an automatic update in the Central Registration Depository. While inactive, you must stop performing every function that requires registration. You cannot solicit new business, execute trades, or provide investment advice.1FINRA. FINRA Rule 1240 – Continuing Education
Compensation During Inactive Status
An inactive person cannot accept or solicit business or receive compensation for the purchase or sale of securities. The rule carves out one exception: you may still receive trail or residual commissions from transactions completed before the inactive status began, unless your firm’s internal policy prohibits those payments.1FINRA. FINRA Rule 1240 – Continuing Education New transaction-based compensation is off the table until you complete the overdue modules and your status is restored.
Two-Year Termination
CE Inactive status is not indefinite. If your registration remains inactive for two consecutive years, measured from the date it was deemed inactive, FINRA will administratively terminate it, and getting back requires reapplying for registration and passing the qualification exams again.1FINRA. FINRA Rule 1240 – Continuing Education The same two-year termination rule applies to anyone who simply fails to complete the Regulatory Element for two consecutive years, regardless of how the registration was categorized in the interim. Completing the overdue modules before the two-year mark restores active status and avoids the need to re-examine.
Hardship Extensions
FINRA can grant additional time when circumstances genuinely beyond a person’s control prevent completion by the deadline. The firm, not the individual, submits a written extension request form with supporting documentation showing good cause. The form requires a detailed explanation (limited to 1,000 characters) and is emailed to FINRA’s dedicated extension inbox.5FINRA. Regulatory Element Learning Plan Extension Request Form Extensions are not routine accommodations for a busy schedule. Serious medical situations, natural disasters, and military deployment are the kinds of circumstances contemplated.
Reminders From Your Firm
Firms can schedule automated Regulatory Element notifications through FINRA Gateway’s Firm Settings, including due-date reminders and CE status-change emails sent to the addresses registered persons have on file in FinPro. Firms can also opt to receive copies of every notification FINRA sends to their registered persons and can set an earlier internal completion deadline that triggers its own round of reminders.6FINRA. Information Notice – FINRA Reminds Registered Persons and Firms of Continuing Education Requirements Keeping your FinPro email address current is one of the easier ways to avoid a surprise inactive status on January 1. If you have not seen a reminder by the fall, log in and check your learning plan directly rather than waiting for a notification that may be going to a stale address.