Posted By: William James
Date: November 4, 2015
FINRA just announced that its Content Outline (CO) for its two FINOP exams has been submitted to the Commission for approval, which is very likely. FINRA Qualifications is hoping to launch the tests under the new CO by December 14, but that is not locked in until the official announcement to the members.
In reviewing the submissions to the SEC, it appears that the number of changes is minimal. In recent years, with the consolidation of the old NASD rules, along with the replacement FINRA rules, there has been pressure on FINRA to update the outline more often than would otherwise be expected. FINRA is obligated to update its exam outlines when new rules become effective and when old rules are retired. For example, NASD Rule 2430 (Charges for Services Performed) and NASD Rule 3110 (Books and Records) were adopted as FINRA Rule 2122 (Charges for Services Performed) and FINRA Rule 4510 Series (Books and Records Requirements), respectively. Most of the rule changes are already captured in the latest edition of your Kaplan study materials.
Don’t be unnerved by a new CO…it happens all the time. The job of FINOP has not changed. The key test topics such as the computation of a broker-dealer’s net capital, aggregate indebtedness, AI:NC ratio, early warning as well as the weekly reserve remain the same. Rules pertaining to record keeping and the filing of FOCUS Reports likewise remain exactly the same.
When the Commission approves these COs, and we approach the cut over date, I’ll get back to you with a bit more granularity regarding the changes. In the meantime, keep studying and all the best on the exam. The job of a FINOP is very important, and I wish you all good luck in your career advancement.