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[Release No. 34-105885; File No. SR-FINRA-2026-014]

Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.;

Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend

FINRA Rule 1210 (Registration Requirements)

July 13, 2026.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)1 and

Rule 19b-4 thereunder,2 notice is hereby given that on June 29, 2026, the Financial

Industry Regulatory Authority, Inc. (“FINRA”) filed with the Securities and Exchange

Commission (“SEC” or “Commission”) the proposed rule change as described in Items I,

II, and III below, which Items have been prepared by FINRA. FINRA has designated the

proposed rule change as constituting a “non-controversial” rule change under paragraph

(f)(6) of Rule 19b-4 under the Act,3 which renders the proposal effective upon receipt of

this filing by the Commission. The Commission is publishing this notice to solicit

comments on the proposed rule change from interested persons.

Self-Regulatory Organization’s Statement of the Terms of Substance of the

Proposed Rule Change

FINRA is proposing to amend FINRA Rule 1210 (Registration Requirements) to

reduce the waiting periods for retaking FINRA qualification examinations.

15 U.S.C. 78s(b)(1).

17 CFR 240.19b-4.

17 CFR 240.19b-4(f)(6).

The text of the proposed rule change is available on FINRA’s website at

http://www.finra.org and at the principal office of FINRA.

II.

Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis

for, the Proposed Rule Change

In its filing with the Commission, FINRA included statements concerning the

purpose of and basis for the proposed rule change and discussed any comments it

received on the proposed rule change. The text of these statements may be examined at

the places specified in Item IV below. FINRA has prepared summaries, set forth in

sections A, B, and C below, of the most significant aspects of such statements.

Self-Regulatory Organization’s Statement of the Purpose of, and Statutory

Basis for, the Proposed Rule Change

Purpose

FINRA Rule 1210 requires each person engaged in the investment banking or

securities business of a member to be registered with FINRA as a representative or

principal in each category of registration appropriate to his or her functions and

responsibilities as specified in FINRA Rule 1220 (Registration Categories), unless

exempt from registration pursuant to FINRA Rule 1230 (Associated Persons Exempt

from Registration). Under FINRA Rule 1210.03 (Qualification Examinations and

Waivers of Examinations), before a person can be registered with FINRA he or she must

pass the appropriate qualification examinations or obtain a waiver of the qualification

examination requirement.

If a person fails a FINRA qualification examination, FINRA Rule 1210.06

(Waiting Periods for Retaking a Failed Examination) sets forth the time the person must

wait before he or she can retake that qualification examination. For the first and second

failed attempts, the person must wait 30 calendar days to retake the qualification

examination. A person who fails a qualification examination three or more times within

a two-year period must wait 180 calendar days before he or she can retake that

examination.4 These waiting periods apply to all FINRA qualification examinations,

including the Securities Industry Essentials (“SIE”) qualification examination.5

The current qualification examination waiting periods were implemented in 1989

because extensive automation of the registration and qualification process had made it

possible for applicants to make multiple attempts to pass qualification examinations in

rapid succession, often within very brief periods.6 The waiting periods were adopted to

address three main purposes. The first was to encourage candidates who did not pass the

qualification examination to study and learn more about the job functions of the

registration category rather than just focusing on the recently seen test questions. The

second was to protect the integrity of the qualification examinations. Allowing an

individual to retest multiple times in a short period of time increases the risk that test

content could be compromised because the individual may share questions with others.

For the 180-day waiting period calculation, failed qualification examination

attempts from more than two years ago are not included in determining the total

number of times an individual has failed the qualification examination.

The waiting period applies to the specific qualification examination that the

person fails. For example, if a person fails the SIE examination, he or she would

not be required to wait 30 days to take the Series 7 (General Securities

Representative) qualification examination.

See Securities Exchange Act Release No. 26909 (June 8, 1989), 54 FR 25652

(June 16, 1989) (Order Approving File No. SR-NASD-89-14).

The third purpose was to give FINRA time to investigate and address potential breaches

of the FINRA Qualification Examination Rules of Conduct (“Rules of Conduct”).7

Since the implementation of the current retake waiting periods, the FINRA

qualification program has undergone changes that have shifted the principal risks

discussed above that originally informed the rule. Today’s high-volume FINRA

qualification examinations use extensive question banks that contain thousands of

questions, with each test taker receiving only a small subset of questions per attempt.

This approach reduces both the likelihood that repeat test takers will depend on

memorized questions from prior attempts and the risk of content being disseminated to

others. Additionally, FINRA employs data forensics and advanced technology to identify

misconduct and compromised examination content, taking appropriate corrective action

when such incidents occur. Moreover, these enhanced detection capabilities help to

ensure that the shortened waiting periods would not compromise FINRA’s ability to

conduct timely investigations into possible cheating or other violations of the Rules of

Conduct.

Over the past several years, FINRA has received input from various industry

channels about the burden that the current qualification examination waiting periods

place on individuals seeking to enter the securities industry. Similar feedback regarding

these challenges was received by FINRA in response to its request for comment on

modernizing FINRA rules, guidance, and processes for the organization and operation of

The Rules of Conduct are available at https://www.finra.org/registration-examsce/qualification-exams/exam-day/finra-rules-conduct.

member workplaces.8 Given this consistent input and FINRA’s current efforts to

modernize its requirements to make sure that they remain relevant and effective, FINRA

is proposing to shorten the required qualification examination retake waiting periods to

15 days after the first and second failed attempts, and 60 days after the third and all

subsequent failed attempts that occur within a two-year period. FINRA believes that as a

result of the changes to the qualification program that have occurred since the

implementation of the current retake waiting periods, shortening the waiting periods in

this manner would lessen the burden on individuals who are trying to register to begin

their employment in the securities industry while also continuing to protect investors by

maintaining appropriate program integrity.

The proposed rule change would apply only to FINRA qualification examinations

(including the SIE qualification examination) and would not impact the waiting periods

for other qualification examinations that FINRA administers on behalf of the Municipal

Securities Rulemaking Board (“MSRB”), the National Futures Association (“NFA”) or

See Regulatory Notice 25-07 (April 2025). All commenters addressing this topic

recommended either reducing or removing the qualification examination retake

waiting periods. Those who commented on the 30-day waiting periods proposed

shortening them to 15 days. See, e.g., letter from Roseann Viscardi, President,

Association of Registration Management, Inc., to Jennifer Piorko Mitchell, Office

of the Corporate Secretary, FINRA, dated July 14, 2025 (“ARM”). Concerning

the 180-day waiting period, commenters proposed reducing it to either 30 or 60

days. See, e.g., ARM; letter from Bernard V. Canepa, Managing Director and

Associate General Counsel, and Alyssa Pompei, Vice President and Assistant

General Counsel, Securities Industry and Financial Markets Association, to

Jennifer Piorko Mitchell, Office of the Corporate Secretary, FINRA, dated July

14, 2025.

the North American Securities Administrators Association (“NASAA”).9 To reduce

confusion regarding which waiting periods apply to which qualification examinations and

in the interest of harmonizing the waiting periods across all qualification examinations

should the proposal become effective, FINRA has engaged in discussions with the

MSRB, the NFA and NASAA to communicate its intention to change the waiting

periods.10 If an agreement cannot be reached to harmonize the waiting periods for all

qualification examinations, FINRA would work with other SROs and NASAA to address

the operational implications of the proposal to mitigate any potential confusion for the

securities industry.

Statutory Basis

FINRA believes that the proposed rule change is consistent with the provisions of

Section 15A(b)(6) of the Act,11 which requires, among other things, that FINRA rules be

designed to prevent fraudulent and manipulative acts and practices, to promote just and

equitable principles of trade, and, in general, to protect investors and the public interest.

FINRA believes that the proposed rule change would lessen the burden on

individuals who are trying to register to begin their employment in the securities industry

in a manner that would continue to protect investors and the public interest. Specifically,

More information on the qualification examinations that FINRA administers on

behalf of the MSRB, the NFA and NASAA is available on FINRA’s website at

https://www.finra.org/registration-exams-ce/qualification-exams.

FINRA also has communicated its intention to change the qualification waiting

periods to other self-regulatory organizations (“SROs”) because some SROs

would need to engage in rulemaking to harmonize their rules with the proposed

changes as they have codified their qualification examination waiting periods

under their respective rules.

15 U.S.C. 78o-3(b)(6).

as discussed above, the proposed rule change would allow FINRA to maintain the

appropriate integrity of its qualification examinations. In this regard, changes to

FINRA’s qualifications program have reduced the risk that repeat test takers will depend

on memorized questions from prior attempts and the risk of content being disseminated to

others. In addition, under the proposed waiting periods, FINRA would continue to have

sufficient time to conduct timely investigations into possible cheating or other

misconduct.

Self-Regulatory Organization’s Statement on Burden on Competition

FINRA does not believe that the proposed rule change will result in any burden

on competition that is not necessary or appropriate in furtherance of the purposes of the

Act. The proposed rule change modifies FINRA qualification examination waiting

periods in recognition of changes to the FINRA qualification program, consistent with

the purposes of the waiting periods as described above.

Economic Impact Assessment

FINRA has undertaken an economic impact assessment, as set forth below, to

analyze the economic baseline for the proposed amendment and its potentially significant

economic impacts, including anticipated costs and benefits, relative to the baseline, and

the alternatives considered in assessing how best to meet FINRA’s regulatory objectives.

Regulatory Need

In light of changes to the FINRA qualification program, shorter examination

retake waiting periods may offer a better balance between the benefits of promoting

learning and facilitating examination security and the costs to individuals seeking

registration and the firms that employ or would employ them.

Economic Baseline

The economic baseline includes the current qualification examination retake

waiting period structure, the limitations on individual job functions and responsibilities

during waiting periods, and the associated costs to individuals and firms. The economic

baseline also includes incentives to learn, risks to qualification examination integrity and

risks of qualification examination material harvesting as these risks relate to waiting

periods.

We analyzed data from candidates with first attempts in 2024 for FINRA’s three

most popular qualification examinations: the SIE, the Series 7, and the Series 24 (General

Securities Principal). Over 70 percent of individuals pass these qualification

examinations on the first attempt. Retake rates vary across these qualification

examinations: 65 percent of individuals who fail the SIE take the qualification

examination a second time, compared to 85 percent for the Series 7 and 78 percent for the

Series 24.

Economic Impacts

Under the proposed retake waiting period structure of 15-15-60 days, the

cumulative mandatory waiting period until the fourth attempt for candidates who fail

three consecutive attempts will fall by 150 days, to 90 days. Only some individuals,

however, would make use of the opportunity under the proposed structure to proceed

more quickly. For the SIE, 23 percent of individuals currently make a second attempt as

quickly as possible (within 30 to 34 days). For the Series 7 and the Series 24, the figures

are, respectively, 21 percent and 14 percent. These individuals may want to proceed even

more quickly. However, 40 percent of individuals who take the SIE a second time

currently wait over 60 days to do so. The figures for the Series 7 and the Series 24 are 32

percent and 52 percent, respectively. Whether shortened waiting periods would affect

pass rates is uncertain.

For high-volume examinations, FINRA does not expect this change would reduce

the incentive to learn the material that will be tested on a qualification examination.

Given large examination banks, the likelihood of seeing the same question again on an

attempt is likely not much greater under the proposed rule change than currently under

the baseline. For many lower-volume examinations, candidates are generally employed

and looking to advance and are incentivized to study and pass.

Anticipated Benefits

Under the proposed rule change, individuals who retake and pass FINRA

qualification examinations more quickly may be better positioned to advance in their

careers more quickly. Members benefit from being able to give advanced job functions

and responsibilities more quickly to individuals who under the baseline would retake and

ultimately pass FINRA examinations. Members also benefit from being able to more

quickly terminate individuals who would retake and not ultimately pass FINRA

examinations. Accordingly, members spend less in salary and other expenses on

individuals who do not meet their workforce needs and more on individuals who do meet

such needs.12

The assessment of the anticipated benefits of the proposed rule change assumes

that the waiting periods for all qualification examinations are the same. The full

potential benefits of the proposal may not be realized otherwise.

Anticipated Costs

Reducing waiting periods might lead some candidates to attempt to retake a

qualification examination quickly without making necessary adjustments, potentially

resulting in additional failures and extending overall time to qualification. Where

members can influence retake timing, they will need to determine if there are risks of

additional failure and turnover from less time between retakes of qualification

examinations and whether those risks are offset by other benefits.

Any reduction in waiting periods may have a nominal cost related to FINRA’s

ability to respond to test security concerns in a timely manner and the associated potential

risks to investors and members. FINRA believes this risk is mitigated by changes to the

FINRA qualification program discussed above.

Alternatives Considered

Other changes to the qualification examination waiting times were considered,

including 15-30-90 days. FINRA believes that a retake waiting period structure of 15-1560 days provides an appropriate balance between potential benefits to individuals and

members and potential costs and risks described above.

Self-Regulatory Organization’s Statement on Comments on the Proposed

Rule Change Received from Members, Participants, or Others

Written comments were neither solicited nor received.

III.

Date of Effectiveness of the Proposed Rule Change and Timing for Commission

Action

Because the foregoing proposed rule change does not: (i) significantly affect the

protection of investors or the public interest; (ii) impose any significant burden on

competition; and (iii) become operative for 30 days from the date on which it was filed,

or such shorter time as the Commission may designate, it has become effective pursuant

to Section 19(b)(3)(A) of the Act13 and Rule 19b-4(f)(6) thereunder.14

At any time within 60 days of the filing of the proposed rule change, the

Commission summarily may temporarily suspend such rule change if it appears to the

Commission that such action is necessary or appropriate in the public interest, for the

protection of investors, or otherwise in furtherance of the purposes of the Act. If the

Commission takes such action, the Commission shall institute proceedings to determine

whether the proposed rule should be approved or disapproved.

IV.

Solicitation of Comments

Interested persons are invited to submit written data, views and arguments

concerning the foregoing, including whether the proposed rule change is consistent with

the Act. Comments may be submitted by any of the following methods:

Electronic Comments:

•

Use the Commission’s internet comment form

(https://www.sec.gov/rules/sro.shtml); or

•

Send an email to rule-comments@sec.gov. Please include file number

SR-FINRA-2026-014 on the subject line.

Paper Comments:

•

Send paper comments in triplicate to Secretary, Securities and Exchange

Commission, 100 F Street, NE, Washington, DC 20549-1090.

15 U.S.C. 78s(b)(3)(A).

17 CFR 240.19b-4(f)(6).

All submissions should refer to file number SR-FINRA-2026-014. This file

number should be included on the subject line if email is used. To help the Commission

process and review your comments more efficiently, please use only one method. The

Commission will post all comments on the Commission’s internet website

(http://www.sec.gov/rules/sro.shtml). Copies of the filing will be available for inspection

and copying at the principal office of FINRA. Do not include personal identifiable

information in submissions; you should submit only information that you wish to make

available publicly. We may redact in part or withhold entirely from publication

submitted material that is obscene or subject to copyright protection. All submissions

should refer to file number SR-FINRA-2026-014 and should be submitted on or before

[INSERT DATE 21 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL

For the Commission, by the Division of Trading and Markets, pursuant to

delegated authority.15

Sherry R. Haywood,

Assistant Secretary.

17 CFR 200.30-3(a)(12).

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.