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95-35 Continuing Education Program Update: Regulatory Element Questions And Answers

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Executive Summary

On February 8, 1995, the Securities and Exchange Commission (SEC) approved rules1 submitted to it by eight self-regulatory organizations (SROs)—the American Stock Exchange, the Chicago Board Options Exchange, the Chicago Stock Exchange, the Municipal Securities Rulemaking Board, the National Association of Securities Dealers, the New York Stock Exchange, the Pacific Stock Exchange, and the Philadelphia Stock Exchange—for the creation of a Continuing Education Program (the Program). This Program is comprised of two parts—the Regulatory Element and the Firm Element. Both Elements are effective July 1, 1995, with the Firm Element to be implemented in two parts, as described below. This Notice restricts itself to the procedures surrounding the implementation of the Regulatory Element of the Program.

Program Background

In September 1993, the Securities Industry Task Force on Continuing Education recommended implementation of a Continuing Education Program for securities industry professionals. The Task Force called for a two-part program that requires periodic uniform training in regulatory matters (Regulatory Element) and ongoing programs by broker/dealers to keep employees up-to-date on job-and product-related subjects (Firm Element).

The report also proposed the creation of a permanent Securities Industry/ Regulatory Council on Continuing Education, to oversee the implementation of the Program and recommend to the SROs the specific content of the Regulatory Element and the minimum guidelines for complying with the Firm Element requirements (see Special Notice to Members 95-13).

In November 1993, the Council was created with individuals from 13 broker/dealers representing a broad cross-section of industry firms, and six SROs—the American Stock Exchange, the Chicago Board Options Exchange, the Municipal Securities Rulemaking Board, the National Association of Securities Dealers, the New York Stock Exchange, and the Philadelphia Stock Exchange. The SEC and the North American Securities Administrators Association each also assigned liaisons to the Council. The Council plays an ongoing role in evaluating the Program and in recommending changes to the SROs as necessary to ensure that the Regulatory and Firm Elements are responsive to industry needs.

The Continuing Education Program

The mandatory Continuing Education Program approved by the SEC on February 8, 1995, is a two-part program. Effective July 1, 1995, the Program requires periodic participation in computer-based training in regulatory matters—the Regulatory Element—and the establishment of ongoing training programs by firms to keep covered employees up-to-date on job- and product-related subjects— the Firm Element. This Program helps ensure that registered persons stay current on products, markets, and rules to the ultimate benefit of the investing public.

Persons Covered By The Continuing Education Program

Every person required to be registered in any capacity with an SRO who has been registered for 10 years or less is covered by the Regulatory Element, and must satisfy the requirements within 120 calendar days after the second, fifth, and tenth anniversaries of his or her initial securities registration. Also covered are those who have been registered more than 10 years and who have been the subject of a significant disciplinary action (suspension, fine of $5,000 or more, or a statutory disqualification) during the most recent 10 years. Those registered more than 10 years who have not been the subject of a significant disciplinary action are not covered by the requirements of the Regulatory Element.

The Firm Element requirements apply to all broker/dealers and their "covered persons." Covered persons are registered salespeople, traders, investment bankers, and others who conduct a securities business with public customers, and the immediate supervisors of such persons. The term "customer" applies to retail, institutional, and investment banking customers, but does not include other broker/dealers.

Registered persons outside the United States are covered by the Program. However, with respect to the Regulatory Element, special administration accommodations are necessary to deliver the computer-based training to them, and firms with registered representatives outside the United States will be advised by their SRO on the method of accommodation when such is developed.

How The Continuing Education Program Will Be Administered

The Regulatory Element of the Program will be delivered through computer-based training in which participants work through problems related to realistic scenarios at computer terminals in an NASD PROCTOR® Certification Testing Center (PROCTOR Center). Individuals will be subject to the Regulatory Element based on their initial registration date or, if applicable, the date of the most recent significant disciplinary action against them. For example, persons registered in October 1993 must first participate in the Regulatory Element within 120 calendar days after then-second anniversary of continuous registration in October 1995. In October 1998, they again participate to complete their five-year cycle requirement. In October 2003, they again participate to complete their 10-year anniversary requirement. Thereafter, they are exempt from the Regulatory Element, only if they have no significant disciplinary action in the most recent 10-year period.

The Firm Element is developed and administered by firms and may include written materials, videos, audio tapes, classroom training, direct broadcasts, or other media presentations. Firms must conduct a training-needs analysis and have their written training plans completed by July 1, 1995. The Firm Element will begin for all "covered persons" no later than January 1, 1996, in accordance with their firm's written training plans. The Regulatory and Firm Elements focus on increased education and training, rather than periodic retesting.

Regulatory Consequences For Non-Compliance

Failure to comply with Firm or Regulatory Element requirements may subject the firm and individual to disciplinary action. Non-compliance with Regulatory Element requirements will result in an individual's registration being deemed inactive until he or she fulfills all program requirements. If an individual is inactive, that individual may not engage in, or be paid for, activities requiring registration.

The Role Of The Central Registration Depository In The Implementation Of The Regulatory Element

The Central Registration Depository (CRD) will play an important role in the implementation of the Regulatory Element by keeping track of those affected by the Regulatory Element and by notifying firms of their employees required to satisfy the Regulatory Element. The following series of Questions and Answers will help clarify the procedures necessary to implement the Regulatory Element. Questions about this Notice may be directed to John Linnehan, NASD Director of Continuing Education, at (301) 208–2932 or your CRD Quality and Service Teams at:

CRD Quality and Service Team 1 (301)921–9499

CRD Quality and Service Team 2 (301)921–9444

CRD Quality and Service Team 3 (301)921–9445

CRD Quality and Service Team 4 (301) 921–6664

CRD Quality and Service Team 5 (301) 921–6665


1 The NASD rule is Part XII to Schedule C of the NASD By-Laws.


Questions And Answers Regarding The Regulatory Element

Who Is Required To Participate In The Regulatory Element And How Will They Be Notified

1.
Q. Who is covered by the Regulatory Element?
A. Each person registered for 10 years or less is covered by the Regulatory Element and must take the regulatory computer-based training within 120 calendar days after the second, fifth, and tenth anniversaries of his or her initial registration date. In addition, registered persons who have been the subject of a significant disciplinary action during the last 10 years (from July 1, 1995), or become subject to a significant disciplinary action after that date, are subject to the Regulatory Element requirements. See Significant Disciplinary Actions below, for more information.
2.
Q. What is the initial registration date?
A. The initial registration date is the first date an individual became registered with the NASD or NYSE, regardless of the registrations the individual acquired after his or her initial registration. The initial registration date is the date the person's registration was approved, not the date the person took and passed the registration qualifications examination. For this regulation, persons who have a gap greater than two years in their registration history will have their initial registration date reset to the point of entry following the two-year gap.
3.
Q. What types of NASD and NYSE registrations are affected by the Program and the Regulatory Element?
A. Those who hold the following registrations are subject to the Regulatory Element requirements:
4 Registered Options Principal
6 Investment Company Products/Variable Contracts Limited Representative
7 General Securities Representative
7 Securities Trader (NYSE)
7 Trading Supervisor (NYSE)
7a Floor Members Engaged in Public Business with Professional Customers (NYSE)
7b Floor Clerks of Members Engaged in Public Business with Professional Customers (NYSE)
8 General Securities Sales Supervisor
8 Branch Office Manager (NYSE)
11 Assistant Representative—Order Processing
12 General Securities Sales Supervisor (NYSE)
13 Allied Member (NYSE)
14 Compliance Official
15 Foreign Currency Options
16 Supervisory Analyst (NYSE)
17 Limited Registered Representative
22 Direct Participation Programs Limited Representative
24 General Securities Principal
26 Investment Company Products/Variable Contacts Limited Principal
27 Financial Operations Principal
28 Introducing Broker/Dealer Financial and Operations Principal
39 Direct Participation Programs Limited Principal
52 Municipal Securities Representative
53 Municipal Securities Principal
62 Corporate Securities Limited Representative
Government Securities Representative
Government Securities Principal
Securities Lending Representative (NYSE)
Securities Lending Supervisor (NYSE)
Persons holding only a commodities registration with the National Futures Association or state investment-advisor registrations are not tracked by the CRD and are not included.
4.
Q. What if an individual has multiple registrations, such as a Series 6 in 1988 and a Series 7 in 1991? What date determines when that person must participate in the Regulatory Element?
A. The date of the initial registration (1988) applies, provided that the person has remained continuously registered since that time and has had no significant disciplinary action as described below.
5.
Q. What if the above individual had a Series 6$ State Investment Advisor registration in 1992 and a Series 6 in 1993? What date determines when that person must participate in the Regulatory Element?
A. The date of the Series 6 NASD registration (1993) applies, provided that the person has remained continuously registered since that time and has had no significant disciplinary action as described below.
6.
Q. Certain municipal securities representatives and principals were registered with one or more bank regulators pursuant to MSRB rules before becoming associated with an NASD member. How is their initial registration date calculated?
A. The CRD may recognize such persons as being registered less than 10 years and send that person's firm a Regulatory Element notice. However, if the person had been previously registered for more than 10 years, and such person has no significant disciplinary history that makes the person subject to the Regulatory Element, he or she is not required to meet the Regulatory Element requirements. The firm receiving a notice for such a person should advise its CRD Quality and Service Team in writing that the person is exempt because he or she has been registered for more than 10 years. The letter must include the amount of time registered before becoming associated with an NASD firm and the bank regulatory organization or organizations with which the person was registered so that this information can be verified. Unless that person is subsequently covered by the Regulatory Element, he or she will not receive another CRD notice.
7.
Q. What if a person's registration temporarily lapses?
A. If a person ceases to be registered for less than two years, he or she will maintain the original registration date but will have to participate in any Regulatory Element program that he or she may have missed during the lapse period. For example, if a person's registration lapses at four and one-half years, and that person wishes to reactivate at what would be his or her six-year anniversary, he or she must complete the fifth-year Regulatory Element requirement before the registration can be reactivated.
8.
Q. What if the person ceases to be registered for two or more years ?
A. That person begins the entire registration process anew. That is, he or she must take the appropriate qualification examination(s) and reenter the Regulatory Element at the beginning of a new 10-year cycle.
9.
Q. What is the initial registration date of the person who was not registered for two or more years and reentered the securities business by waiver rather than by reexamination?
A. The initial registration date of that person is the waiver approval date for this rule.
10.
Q. Is anyone exempt from the Regulatory Element of the Program?
A. Those who have been registered more than 10 years and who have not been the subject of a significant disciplinary action during the most recent 10 years are exempt from the Regulatory Element. However, if an individual incurs a significant disciplinary action at any time in the future, or is ordered by a state securities regulator, an SRO, or the SEC to reenter the Regulatory Element, that person will be subject to the Regulatory Element requirements in a new 10-year cycle. Also exempt from the Regulatory Element requirements are those registered persons whose activities are limited solely to the transaction of business on an exchange floor with members or registered broker/dealers.
11.
Q. Can a firm request a Regulatory Element computer-based training session for an individual registered representative who is not otherwise covered by the Regulatory Element requirements?
A. Yes. To request a computer-based training session for an individual not otherwise covered by the Regulatory Element, a firm submits a request through FAQS (using the EXAM-REQ command) or sends a page one of Form U-4 using the "Other" line to request a session. The firm's CRD account will be charged for the training session when the appointment is requested, rather than after the session is taken, as is the case for those who are covered by the Regulatory Element.
12.
Q. How will firms be notified of those who are required to satisfy the Regulatory Element requirements?
A. Beginning in June 1995, 30 days before the anniversary, the CRD will issue notices to those whose second, fifth, or tenth anniversary of their initial securities registration or posting of a significant disciplinary matter occurs. The notices will state that beginning with the date of the individual's second, fifth, or tenth anniversary, he or she will have 120 calendar days to satisfy the Regulatory Element, by completing a computer-based training session dealing with regulatory matters relevant to conducting a securities business of any kind. The individual must then make an appointment to take the computer-based training at any PROCTOR Center before the end of the 120-day period, or have his or her securities registration be made inactive. A person with an inactive securities registration cannot perform or be paid for any activities that require a securities registration.
13.
Q. If an individual is registered with more than one firm, which firm or firms will receive notifications for that individual?
A. In most instances, only one firm will receive notification for an individual. Determination of the firm to receive the notification will occur as follows:
  • If the oldest active registration is with a firm that is non-affiliated with a group of firms, that firm will receive the notification.

  • If the oldest active registration is with one or more firms in a group of affiliated firms, CRD will check to determine if the firms are registered as a simultaneous filing group.

    • For affiliated firms registered as a simultaneous filing group, the designated firm will receive the notification.

    • For affiliated firms not registered as a simultaneous filing group, the notification will be sent to the firm identified as the primary firm by the group of affiliated firms.
The firm that receives notification for an individual will be the firm that has its CRD account debited for the Regulatory Element computer-based training session.
Individual and summary reports that include a change to an inactive status will be sent to all firms with which the individual is currently registered.

Significant Disciplinary Actions

14.
Q. What is a significant disciplinary action?
A. A significant disciplinary action occurs when a registered person:
  • becomes subject to a statutory disqualification pursuant to the Securities Exchange Act of 1934. Such disqualifications include bars, suspensions, and civil injunctions involving securities matters, any felony convictions, or a misdemeanor conviction that involves investments or an investment-related business, or any fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of these offenses; or

  • becomes subject to suspension or to the imposition of a $5,000 or more fine for violating any provision of any securities law or regulation, or any agreement with, or rule or standard of conduct of, any securities governmental agency, securities SRO, or as imposed by any such regulatory or SRO in connection with a disciplinary proceeding; or

  • is ordered to reenter the Regulatory Element as a sanction in a disciplinary action by any securities governmental agency or securities SRO.
15.
Q. How does the imposition of a significant disciplinary action affect a person's status in the Regulatory Element?
A. A significant disciplinary action "resets the clock" for an individual who is already covered by, or who has previously met the requirements of, the Regulatory Element. Once a significant disciplinary action has been posted on CRD, there is a 45-day waiting period. The 46th day becomes the effective date, and as of this effective date, the individual will have 120 days in which to meet the requirements of the Regulatory Element computer-based training session. Additionally, the individual must successfully complete Regulatory Element sessions within 120 days of the second, fifth, and tenth anniversaries of the effective date associated with that disciplinary action.
16.
Q. How will a final significant disciplinary action that is under appeal affect a person's Regulatory Element requirement status ?
A. If an appeal is filed, the Regulatory Element requirement associated with that disciplinary action will be "suspended," and the individual will retain the Regulatory Element status he or she had before the appeal. If the final significant disciplinary action is sustained on appeal, the effective date would become the 46th day after the appeal of the final significant disciplinary action was sustained. The person will then have 120 days in which to complete a Regulatory Element computer-based training session. Additionally, the person must complete Regulatory Element sessions within 120 days of the second, fifth, and tenth anniversaries of the effective date associated with the significant disciplinary action.
17.
Q. What about those individuals with significant disciplinary actions within the last 10 years in their records as of July 1, 1995?
A. Those individuals with significant disciplinary actions within the last 10 years in their records as of July 1, 1995, are subject to the Regulatory Element requirements. However, CRD will send notice for these individuals to their firms after November 1995. This is because sending the notices depends on a phase of the CRD Redesign project that will be complete in October. Once the significant disciplinary records are in the CRD, notices will be sent to those whose second, fifth, or tenth anniversary of such actions has occurred. Although an anniversary may have passed by the time the significant disciplinary records are entered, the individual will have 120 days in which to satisfy the Regulatory Element requirement.

For example, if an individual registered for 15 years has a significant disciplinary action posted to his or her record on August 14, 1990, that individual's fifth anniversary of the significant disciplinary action is August 14, 1995. Ordinarily, a notice would be sent to his or her firm on July 14, 1995, advising of the upcoming anniversary and the Regulatory requirement to be met no later than December 12, 1995. However, due to the capture of this record in October, the notice will go out in November requiring the individual to meet the Regulatory Element requirements between December 1995 and April 1996.

Types Of Reports Issued By CRD To Firms

18.
Q. What types of reports will CRD provide firms to help them track the status of their registered employees subject to the Regulatory Element?
A. CRD will issue several types of individual notifications:
  • An Initial Notice is sent 30 days before the registered representative's anniversary date to remind the individual of an approaching registration or disciplinary anniversary, and to inform them of the associated Continuing Education Program requirement. The notification will include the beginning and ending dates of the 120-day window, as well as notice of authorization to schedule a training session for any available date in that window.

  • A Second Notice is sent if a registered person has not met his or her obligations by the last 30 days of the 120-day window. The notice will advise the individual of his or her status and will include a reminder of the consequences of not complying with the Regulatory Element requirements.

  • A Notice of Inactive Status is sent to inform the registered person that because the Regulatory Element computer-based training is not complete, his or her registration is no longer active and he or she may not perform, or be paid for, any activity that requires a securities registration.

  • A Notice of Session Completion is sent when the registered person satisfies the Regulatory Element requirement by completing a computer-based training session, or by approved waiver (see below). If applicable, the notification will indicate that the person completed all pending requirements of the Regulatory Element.
By the middle of each month, CRD will advise firms with summary status reports. The Requirement Summary report will show registered persons who:
  • have begun their 120-day window;

  • have 90 days remaining in their 120-day window;

  • have 60 days remaining in their 120-day window; or

  • have 30 days remaining in their 120-day window.
Other summary reports will show registered persons who:
  • have completed their requirement within the past 30 days (Completion Summary);

  • have had their registration changed to inactive within the past 30 days (Inactive Summary);

  • have remained inactive for more than 30 days (Previously Inactive Summary); or

  • have had their registration status changed from inactive to another status within the past 30 days (Previously Inactive/Satisfied Summary).

Waivers

19.
Q. Is it possible for an individual to have the Regulatory Element requirements waived?
A. Waivers may be granted only under the most extraordinary circumstances.
20.
Q. How does a firm request a waiver from the Regulatory Element requirements?
A. A principal of the firm must address the waiver request to the firm's CRD Quality and Service Team for a decision.

Administration Of The Computer-Based Training Of The Regulatory Element And Scheduling Computer-Based Training Sessions At NASD PROCTOR Centers

21.
Q. Where will a person take the computer-based training of the Regulatory Element and how long will the training last?
A. The computer-based training will be administered at any one of the 55 NASD PROCTOR Centers. A person will have up to three hours to complete the training session.
22.
Q. How does a person make an appointment at a PROCTOR Center?
A. The individual or his or her firm can make an appointment to take the Regulatory Element computer-based training by calling a conveniently located PROCTOR Center. The PROCTOR Center administrator will need to know:
  • the person's name and social security number;

  • the firm's name; and

  • a telephone number where the PROCTOR administrator can reach the individual or his or her firm.
Due to the many computer-based training sessions and qualifications examinations administered at the PROCTOR Centers, individuals should be strongly encouraged to schedule their appointment as soon as possible within their 120-day window. PROCTOR Center addresses, phone numbers, and hours are listed at the end of this Notice.
23.
Q. What will it cost to take the computer-based training at a PROCTOR Center and how will firms be charged?
A. The cost will be $75 for every computer-based training session taken at a PROCTOR Center. A charge will be made against the firm's CRD account. No-shows and those who cancel within 48 hours of a scheduled appointment will be charged $75. If a firm requests a session for an employee who has not received a notification from CRD that he or she is required to satisfy the Regulatory Element, the $75 will be deducted from the firm's CRD account at the time the request is made, and not after the session is complete.
24.
Q. If a person does not complete the Regulatory Element computer-based training, how long must he or she wait before rescheduling another appointment at a PROCTOR Center?
A. A person may reschedule another appointment at a PROCTOR Center after waiting one day. Rescheduling will be done by the PROCTOR Center as soon as the Center's schedule permits. For this reason, it is important that registered persons do not wait until the last minute to schedule an appointment during their 120-day window. There will be another $75 charge for the rescheduled PROCTOR Center appointment.
25.
Q. Can a person schedule or reschedule the Regulatory Element computer-based training after his or her 120-day window closes?
A. Yes. A person who is required to satisfy the Regulatory Element computer-based training requirement can schedule an appointment at a PROCTOR Center, up to two years after the close of his or her 120-day window. Remember, however, that the person whose 120-day window closes without satisfaction of the Regulatory Element requirements will have his or her registration made inactive. This means that the person may not conduct, or be paid for, any activities that require a securities registration. Furthermore, a person whose registration remains inactive for more than two years must requalify for his or her registration by examination and begin a new 10-year Regulatory Element cycle.
26.
Q. Will there be any provisions to accommodate people with disabilities at the PROCTOR Centers?
A. PROCTOR Centers can accommodate people with disabilities. Such persons or their firms should notify the PROCTOR Center of the person's special needs when making the appointment.
27.
Q. Are there any plans to enable delivery of the computer-based training internally at a site provided by the member firm?
A. At this time there are no plans to enable firms to administer the Regulatory Element computer-based training internally. The Council and the SROs believe that delivery of the computer-based training at a neutral site, such as a PROCTOR Center, is the best way to ensure the integrity of the training.
28.
Q. How do the PROCTOR Centers plan to accommodate the additional volume that the Regulatory Element will bring to the Centers?
A. PROCTOR Centers will respond to the increased demand placed on them by the Regulatory Element requirements in three ways:
  • extend hours of operation to evenings and weekends when necessary;

  • build new centers in areas of high volume, such as Boston, Los Angeles, Manhattan, and others; and

  • institute operation of a Mobile PROCTOR Center by July 1995. The Mobile PROCTOR Center will be used initially to meet peak delivery requirements in specific areas near the current PROCTOR Centers. We will publish specific procedures to schedule Mobile PROCTOR Center delivery in areas remote from current PROCTOR Center locations in the near future.
29.
Q. How can a firm schedule delivery of the Regulatory Element computer-based training by a Mobile PROCTOR Center and will the cost still be $75 a session?
A. The Mobile PROCTOR Center will be scheduled centrally by PROCTOR support facilities in Rockville, MD. The cost of delivering the computer-based training by a Mobile PROCTOR Center will be priced to cover actual costs of delivery and therefore will probably be more than $75.
30.
Q. What is the procedure for scheduling a registered representative who resides outside the United States for a Regulatory Element computer-based training session?
A. Registered persons outside the United States are subject to the requirements of the Regulatory Element under the same conditions as persons in the United States. However, such persons cannot attend a computer-based training session outside the United States until arrangements are made to deliver the training in a computerized and secure setting. The CRD will defer covered persons residing outside the United States until the appropriate arrangements can be made. Firms that receive notices for registered persons residing outside the United States should notify their CRD Quality and Service Team in writing of the person's location. The CRD will defer that person's Regulatory Element status and only begin to send notices for that individual when delivery of the computer-based training outside the United States is possible. The status of covered persons residing outside the United States is one of deferment, not exemption.

Subject Matter To Be Covered By The Regulatory Element

31.
Q. What topics will the Regulatory Element computer-based training cover?
A. The Regulatory Element computer-based training will cover topics of general applicability to all registered persons in seven modules during the training session. The areas covered in each module are:
  • Registration and reporting;

  • Communications with the public;

  • Suitability;

  • Handling customer accounts;

  • Business conduct;

  • Customer accounts, trade and settlement practices; and

  • New and secondary offerings.
A content outline for the Regulatory Element modules is available from the CRD Quality and Service Teams or from the NYSE.
32.
Q. How will the material be presented in each module?
A. The interactive computer program contains "real-life" scenarios involving a registered person and a customer, and the person will be asked to choose the most appropriate response or responses to the facts in the story. The computer software will assess the individual's understanding of the topic and deliver tutorials about the subject if necessary. As the person works through each module's subject matter, the computer program provides him or her with immediate feedback as to whether each answer is correct or incorrect and why.
33.
Q. Will the Regulatory Element computer-based training be the same for everyone?
A. The content of each training session will be the same for everyone because each person taking the computer-based training must complete all seven modules. However, because there are multiple scenarios in each of the seven modules and the scenarios are selected at random, it is unlikely that any two people will see exactly the same scenarios during the course of their computer-based training session.

Reports To Firms About Performance On The Regulatory Element Computer-Based Training

34.
Q. What type of reports will be made to individuals and their firms regarding performance on the Regulatory Element computer-based training?
A. The computer-based training is not graded. However, as described above, the interactive nature of the computer-based training provides each individual with immediate feedback as he or she works his or her way through the scenarios and problems. There will be no reports made to firms about individual performance, except to notify the firm that a particular individual has satisfied the Regulatory Element requirement.

Firms will receive a quarterly report about the performance of their employees with respect to the subject areas in the Regulatory Element. The information will be aggregated by type of registration. Firms will be expected to use this feedback in the annual analysis of training needs and in the development of written training plans when complying with the Firm Element requirements of the Continuing Education Program.

Status Of Persons Who Fail To Comply With The Requirements Of The Regulatory Element

35.
Q. What are the consequences of not complying with the Regulatory Element?
A. Any person who does not satisfy the Regulatory Element requirements will have his or her securities registration made inactive. This means that he or she may not engage in, or be paid for, activities that require a securities registration. He or she may not solicit or receive commissions on securities sales. If the person is not in sales and his or her duties require a securities registration, for example, as a Financial and Operations Principal, he or she may neither act in the registered capacity nor receive compensation for activities requiring registration.

Thus, it is important to schedule Regulatory Element computer-based training appointments early in the 120-day window in the unlikely event that the person does not complete the required training on the first attempt and has to reschedule.
36.
Q. If a person is deemed inactive, may he or she continue to receive trail or residual commissions?
A. Trail or residual commissions for business completed before the inactive period may be paid unless the person's firm has a policy that prohibits it.
37.
Q. Does the firm have to submit a Form U-5 to report that a person's registration has been made inactive for failure to meet the Regulatory Element requirements ?
A. No. A firm does not have to submit a Form U-5 to report that a person's registration has been made inactive for failure to satisfy the Regulatory Element requirements. However, if the person is subsequently terminated by the firm for any reason including refusal to comply with the Regulatory Element requirements, a Form U-5 will have to be filed.
38.
Q. What information will a prospective hiring firm have access to, regarding a person's Regulatory Element status before hiring him or her?
A. A person's Regulatory Element status will be accessible to a prospective hiring firm either by phone from a CRD Quality and Service Team member or by using the Pre-Hire Function in FAQS. Thus prospective firms can know if the person is in an open-window status, has satisfied or completed the Regulatory Element requirements, or is inactive for failure to comply with the Regulatory Element requirements. A person whose registration is inactive and who is hired by a new firm, cannot be registered with that firm until he or she satisfies the Regulatory Element requirement that led to the inactive status. Any person who remains inactive for more than two years, will have to requalify for registration by examination and will reenter a new 10-year Regulatory Element cycle.

Information About PROCTOR Centers

Note: Information current as of April 1, 1995, and subject to change without notice.

Alabama

Birmingham Metropolitan Area
PROCTOR Certification Testing
Lakeshore Park Plaza


2204 Lakeshore Drive
Suite 305
Birmingham, AL 35209
(205)870–1643
Hours: 8 a.m.-1 p.m. (M,T,Th,F)
8a.m.-3:3Op.m. (W)
Delivery Stations: 5

Arizona

Phoenix Metropolitan Area
PROCTOR Certification Testing
1717 W. Northern Avenue
Park North II Building
Suite 117
Phoenix, AZ 85021
(602)870–7522
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 13

Arkansas

Little Rock Metropolitan Area
PROCTOR Certification Testing
11219 Financial Ctr. Pkwy.
Suite 311
Little Rock, AR 72211–2859


(501) 224–5781
Hours: 8:30 a.m.-4 p.m. (M,F)
8:30 a.m.-2 p.m. (T,Th)
8:30 a.m.-1 p.m. (W)
Delivery Stations: 5

California

Emeryville/Berkeley Metropolitan Area
PROCTOR Certification Testing
6425 Christie Avenue
Suite 150
Emeryville, CA 94608
(510)601–1134
Hours: 8 a.m.-3:30 p.m. (M-F)
Delivery Stations: 8

Los Angeles Metropolitan Area
PROCTOR Certification Testing
Koll Center
1920 Main Street, Suite 230
Irvine, CA 92714
(714)757–7530
Hours: 8 a.m.-4 p.m. (M-F)
Delivery Stations: 20

Los Angeles Metropolitan Area
PROCTOR Certification Testing
701 N. Brand Blvd., Suite 340
Glendale, CA 91203
(818)545–7383
Hours: 8 a.m.-4 p.m. (M-F)
Delivery Stations: 20

San Diego Metropolitan Area
PROCTOR Certification Testing
6333 Greenwich Drive
Suite 175
San Diego, CA 92122
(619)558–1164
Hours: 8 a.m.-3:30 p.m. (M-F)
Delivery Stations: 11

San Francisco Metropolitan Area
PROCTOR Certification Testing
525 Market Street
Suite 390
San Francisco, CA 94105
(415)882–1212
Hours: 8 a.m.-4 p.m. (M-F)
Delivery Stations: 24

Colorado

Denver Metropolitan Area
PROCTOR Certification Testing
2000 South Colorado Blvd.
Suite 2100
Denver, CO 80222
(303) 692–8745
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 13

Connecticut

Hartford Metropolitan Area
PROCTOR Certification Testing
Glastonbury Corporate Ctr.
628 Hebron Avenue, Suite 210
Glastonbury, CT 06033
(203)657–3161
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 12

Norwalk Metropolitan Area
PROCTOR Certification Testing
Merritt 7 Corporate Park
501 Bldg., Plaza Level
Norwalk, CT 06851
(203) 845–9655
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 10

District of Columbia

Please see Virginia.

Florida

Miami Metropolitan Area
PROCTOR Certification Testing
The Spessard Holland Building
8000 Governors Square Blvd.
Suite 303
Miami Lakes, FL 33016
(305) 825–7940
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 18

Orlando Metropolitan Area
PROCTOR Certification Testing
601 South Lake Destiny Road
Suite 220

Maitland, FL 32751
(407)875–8118
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 24

Georgia

Atlanta Metropolitan Area
PROCTOR Certification Testing
900 Ashwood Parkway
Suite 490

Atlanta, GA 30338
(404)551–0845
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 18

Illinois

Bloomington Metropolitan Area
PROCTOR Certification Testing
211 Landmark Drive,
Suite A3

Normal, IL 61761
(309) 452–4788
Hours: 8 a.m.-3:30 p.m. (M-F)
Delivery Stations: 10

Chicago Metropolitan Area
PROCTOR Certification Testing
10 South LaSalle Street
Suite 2101
Chicago, IL 60603
(312)609–2525
Hours: 8 a.m.-4 p.m. (M-F)
Delivery Stations: 25

ACT Center
River Tree Court
701 N. Milwaukee, Rt. 21
Suite 280
Vernon Hills, IL 60061
(708) 247–4218
Hours: 8 a.m.-8 p.m (M-Th)
8 a.m.-4 p.m. (F, S)
Delivery Stations: 10

Indiana

Indianapolis Metropolitan Area
PROCTOR Certification Testing
Keystone at the Crossing
8900 Keystone Crossing
Suite 990
Indianapolis, IN 46240
(317) 846–8287
Hours: 8 a.m.-3:30 p.m. (M-F)
Delivery Stations: 8

Iowa

Des Moines Metropolitan Area
PROCTOR Certification Testing
3737 Woodland Avenue
Suite 232
West Des Moines, IA 50265
(515)223–5452
Hours: 8 a.m.-3:30 p.m. (M-F)
Delivery Stations: 8

Kansas

Kansas City Metropolitan Area
PROCTOR Certification Testing
Commerce Plaza II
7400 West 110th Street
Suite 310
Overland Park, KS 66210
(913)338–4700
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 9

Kentucky

Louisville Metropolitan Area
PROCTOR Certification Testing
10170 Linn Station Road
Suite 550

Louisville, KY 40223
(502)423–1603
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 5

Louisiana

New Orleans Metropolitan Area
PROCTOR Certification Testing
Energy Centre
1100 Poydras Street
Suite 810
New Orleans, LA 70163
(504) 522–7999
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 7

Maryland

Baltimore Metropolitan Area
PROCTOR Certification Testing
Dulaney Center II
901 Dulaney Valley Road
Suite 502
Towson, MD 21204
(410)337–5103
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 9

Massachusetts

Boston Metropolitan Area
PROCTOR Certification Testing
1601 Trapelo Road
Building C
Waltham, MA 02154–1046
(617) 890–0466
Hours: 8 a.m.-3:30 p.m. (M-F)
Delivery Stations: 23

Michigan

Detroit Metropolitan Area
PROCTOR Certification Testing
Oakland Towne Square
One Towne Square
Suite 230
Southfield, MI 48076
(810)351–9088
Hours: 8 a.m.-3:30 p.m. (M-F)
Delivery Stations: 16

Minnesota

Minn./St. Paul Metropolitan Area
PROCTOR Certification Testing
8300 Norman Center Drive Suite 850

Bloomington, MN 55437
(612) 835–9420
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 18

Missouri

St. Louis Metropolitan Area
PROCTOR Certification Testing
West Park I
12655 Olive Blvd., 3rd Floor
CreveCoeur, MO 63141
(314)469–6086
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 11

Nebraska

Omaha Metropolitan Area
PROCTOR Certification Testing
Century Building
11213 Davenport Street
Suite 103
Omaha, NE 68154
(402) 333–6278
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 7

New Jersey

West Orange Metropolitan Area
PROCTOR Certification Testing
Eisenhower Office Park
101 Eisenhower Parkway
4th Floor
Roseland, NJ 07068
(201)228–8777
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 16

New Mexico

Albuquerque Metropolitan Area
PROCTOR Certification Testing
City Center
6400 Uptown Blvd. NE
Suite 476W
Albuquerque, NM 87110
(505) 884–6033
Hours: 8:30 a.m.-4:30 p.m. (M,W,F)
8:30 a.m.-2:30 p.m. (T,Th)
Delivery Stations: 4

New York

Please also see New Jersey.

New York City Metropolitan Area
PROCTOR Certification Testing
225 Broad Hollow Road
Suite 116W
Melville, NY 11747
(516) 845–9063
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 18

New York City Midtown Area
PROCTOR Certification Testing
201 East 42nd Street
Suite 1000, 10th Floor
New York, NY 10017
(212) 809–5509
Hours: 8:30 a.m.-5 p.m. (M-F)
Delivery Stations: 50

N.Y. City Wall Street Area
PROCTOR Certification Testing
33 Whitehall Street
11th Floor


New York, NY 10004
(212) 809–5509
Hours: 8:30 a.m.-5:30 p.m. (M-F)
Delivery Stations: 50

Rochester Metropolitan Area
PROCTOR Certification Testing
WoodcliffI
345 Woodcliff Drive, 1st Floor
Fairport, NY 14450
(716) 383–5630
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 8

North Carolina

Charlotte Metropolitan Area
PROCTOR Certification Testing
9 Woodlawn Green
Suite 219
Charlotte, NC 28217
(704)523–2773
Hours: 8 a.m.-3:30 p.m. (M-F)
Delivery Stations: 14

Raleigh Metropolitan Area
5540 Centerview Drive
Suite 307

Raleigh, NC 27606
(919) 859–2240

Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 8

Ohio

Cincinnati Metropolitan Area
PROCTOR Certification Testing
4445 Lake Forest Drive
Suite 210

Cincinnati, OH 45242
(513)769–6555
Hours: 8 a.m.-3:30 p.m. (M-F)
Delivery Stations: 9

Cleveland Metropolitan Area
PROCTOR Certification Testing
6450 Rockside Woods Blvd.
Suite 155

Independence, OH 44131
(216) 642–7745
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 7

Columbus Metropolitan Area
PROCTOR Certification Testing
655 Metro Place South
Suite 145 Dublin, OH 43017
(614) 793–1592
Hours: 8 a.m.-3:3O p.m. (M-F)
Delivery Stations: 8

Oklahoma

Oklahoma City Metropolitan Area
PROCTOR Certification Testing
One Lakeview Energy Center
3817 Northwest Expressway
Suite 150
Oklahoma City, OK 73112
(405) 942–1562
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 9

Oregon

Portland Metropolitan Area
PROCTOR Certification Testing
9115 S.W.Oleson Road
Suite 101

Portland, OR 97223
(503)293–8957
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 7

Pennsylvania

Allentown Metropolitan Area
PROCTOR Certification Testing
7660 Imperial Way
Suite A-101
Allentown, PA 18195
(610)481–0460
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 5

Harrisburg Metropolitan Area
PROCTOR Certification Testing
Commerce Park
2405 Park Drive, Suite 202
Harrisburg, PA 17110
(717) 652–4821
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 4

Philadelphia Metropolitan Area
PROCTOR Certification Testing
1760 Market Street,
9th Floor Philadelphia, PA 19103
(215)564–2980
Hours: 8:30 a.m-4 p.m. (M-F)
Delivery Stations: 20

Pittsburgh Metropolitan Area
PROCTOR Certification Testing
Foster Plaza, Building 9
750 Holiday Drive
Suite 605
Pittsburgh, PA 15220
(412)928–2440
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 8

Tennessee

Memphis Metropolitan Area
PROCTOR Certification Testing
Perm Marc Centre
6401 Poplar Avenue, Suite 110
Memphis, TN 38119
(901)767–1180
Hours: 9 a.m.-4:30 p.m. (M,T)
9 a.m.-3 p.m. (W,Th,F)
Delivery Stations: 5

Nashville Metropolitan Area
PROCTOR Certification Testing
One Lakeview Place
25 Century Blvd., Suite 604
Nashville, TN 37214
(615)871–9972
Hours: 9 a.m.-3 p.m. (M,W,F)
Hours: 9 a.m.-4:30 p.m. (T,Th)
Delivery Stations: 6

Texas

Dallas Metropolitan Area
PROCTOR Certification Testing
Wellington Centre
14643 Dallas Parkway, Suite 640
Dallas, TX 75240
(214)385–1181
Hours: 8:30 a.m.-4:30 p.m. (M-F)
Delivery Stations: 20

Houston Metropolitan Area
PROCTOR Certification Testing
Park National Bank Building
10333 Richmond Ave.,
Suite 680
Houston, TX 77042
(713)952–5005 Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 14

San Antonio Metropolitan Area
PROCTOR Certification Testing
40 North East Loop 410
Suite 431
San Antonio, TX 78216
(210) 349–5900
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 8

Utah

Salt Lake City Metropolitan Area
PROCTOR Certification Testing
560 East 200 South
Suite 360
Salt Lake City, UT 84102
(801) 537–1615
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 10

Virginia

No. Virginia Metropolitan Area
PROCTOR Certification Testing
Tycon Towers I Building
8000 Towers Crescent Drive
Suite 280
Vienna, VA 22182
(703)821–3695 Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 12

Richmond Metropolitan Area
PROCTOR Certification Testing
Culpeper Building
1606 Santa Rosa Road
Suite 113
Richmond, VA 23288
(804) 285–8706
Hours: 8:30 a.m. 4 p.m. (M-F)
Delivery Stations: 6

Washington

Seattle Metropolitan Area
PROCTOR Certification Testing
11400 Southeast 8th Street
Suite 270

Bellevue, WA 98004
(206)451–9883
Hours: 9 a.m.-4:30 p.m. (M-F)
Delivery Stations: 11

Wisconsin

Milwaukee Metropolitan Area
PROCTOR Certification Testing
10400 West North Avenue
Suite 340

Milwaukee, WI53226
(414)774–1378
Hours: 8:30 a.m.-4 p.m. (M-F)
Delivery Stations: 13


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