The Regulatory Element Program consists of periodic computer-based training on regulatory, compliance, ethical, supervisory subjects, and sales practice standards. Registered persons are required to participate and complete a designated Regulatory Element within a 120-day period that commences with the second anniversary of their initial securities registration, and reoccur every three years thereafter for as long as they remain in the securities business.

There are currently two different Regulatory Element Programs, the General Program for Registered Persons (S101) and the Supervisor Program for Registered Principals and Supervisors (S201). Their content is derived from rules and regulations as well as standards and practices widely accepted within the industry. Although the specific requirements of certain rules may differ slightly among the various SROs, the programs are based on standards and principles applicable to all.

The Programs lead participants through scenarios depicting situations faced by registered persons in the course of their business. Participants review cases in categories as suitability, communications with the public, ethics, anti-money laundering, insider-trading, product knowledge, and for the S201 only, supervision.

The formats of the scenarios are computer interactive text-based featuring embedded story artifacts and educational tools in the form of glossary terms and resources. After reading the scenes in the cases, participants must demonstrate their understanding of the issues by choosing the most appropriate responses to questions concerning the learning objectives in the cases. The programs assess the participants' understanding of the topics. If participants do not show proficiency with the subject matter, they must try again with another case in the same module. The programs provide immediate feedback as participants work through the case questions.

See Training Materials to review preparation resources.

Guide to Firm Element Needs Analysis and Training Plan Development

View Guide