Making FINRA Exams Last Longer: Life Industry Commentator

One way to support women in the US brokerage industry might be to conduct license renewal reviews every five years, rather than every two years.

Diane Boyle and Maeghan Gale, staff members of the National Association of Insurance and Financial Advisors (NAIFA), made the suggestion in a comment letter sent to the Financial Industry Regulatory Authority.

FINRA launched a request for comment on diversity, equity and inclusion efforts in March, and released a diversity and inclusion report in June.

A question from FINRA was: “What, if any, are the FINRA market rules or practices that have a disparate impact on individuals in the brokerage industry (based on national origin, language, age, sex, race, color, ethnicity, socio-economic status, religion or spiritual practice, disability, sexual orientation, gender identity, family structure or status veteran) or discourage participation in the brokerage industry? “

NAIFA commentators have said that requiring FINRA licensees to pass a major licensing exam every two years is cumbersome.

“There are many reasons why a registrant may want to keep their exams / licenses for more than two years, including working mothers who wish to take time off to care for children,” commenters said. NAIFA. “A longer period, like five years, would make it easier for mothers to return [the] labor force as their children reach school age.

Rebecca Parrish, someone in the financial services industry, also called on FINRA to let registrants spend more time between exams.

“There are many other professions that allow you to be licensed as long as continuing education is up to date,” Parrish said.

NAIFA commentators also spoke about FINRA rules that require potential registrants to have financial services companies act as sponsors.

“Only companies with more solid resources may be able to hire candidates without the necessary licenses,” NAIFA commentators said. “This additional hurdle is likely to result in less diverse hiring, especially within organizations themselves lacking in diversity. FINRA’s expanded offering of exams without sponsorship requirements has huge potential benefits for companies and applicants.

Language

Commentators from the NAIFA and those from other life insurance and annuity organizations have also called on FINRA to consider allowing registrants to take exams and use marketing materials written in languages ​​other than english.

Clifford Kirsch and Eric Arnold have written, on behalf of the Committee on Annuities Insurers, that FINRA will grant applicants who speak English as a second language additional time to take qualifying exams.

“However, FINRA does not administer qualifying exams in languages ​​other than English,” wrote representatives of the Committee of Annuity Insurers. “The committee believes that by administering the qualifying exams in English only, FINRA has created a barrier to entry into the brokerage industry for people who do not speak English as their primary language and have limited ability to read, speak, write or understand English. . “

Lowering the language barrier is important because many investors speak languages ​​other than English and need financial professionals who speak their own language, representatives said.

other comments

Here are more comments from life insurance and annuity groups and other commentators: