By default, your qualifications terminate two years after you leave a FINRA-member firm — after that, you generally have to requalify by exam. But the Financial Industry Regulatory Authority (FINRA)’s Maintaining Qualifications Program (MQP) lets eligible registrants extend that window to up to five years by staying current on continuing education (CE). For anyone weighing a move — stepping away for a while, or leaving a broker-dealer to launch their own advisory firm — that extra runway can be the difference between preserving your registrations and starting over.
FINRA created the MQP through amendments to Rule 1210 and Rule 1240. The regulatory notice detailing the changes said they would accommodate registrants “particularly women and underrepresented minorities, whose personal circumstances take them away from the industry for a time.” The same amendments also require registrants to complete CE on applicable regulation annually for each representative or principal registration category they hold.
The MQP can provide breathing room so that the two-year deadline for affiliating with a broker-dealer does not trigger the same stress cycle felt when deciding to leave one. It also discourages advisors from making poor choices to keep their FINRA licenses active — such as “parking” them at a broker-dealer or choosing a career path based partly on the need to maintain active registrations.
Why FINRA Moved to Annual Continuing Education
FINRA has adjusted its overall approach to CE to keep pace with the transformative needs of financial advisors and their clients. In response to the rapid pace of change in industry rules, it moved to an annual CE requirement for active reps.
FINRA said that adopting an annual CE requirement would push registrants to remain up to date on regulatory changes — including the newest developments from the prior year — and would give registrants “more frequent assessments” on current issues.[1] As regulators, the objectives of FINRA and the U.S. Securities and Exchange Commission (SEC) are to protect investors, and they can’t do so unless licensed individuals and fiduciaries stay abreast of the latest rules. The move to an annual requirement augments the timeliness of the CE Regulatory Element, reduces firms’ regulatory risk, enhances compliance, and can reduce compliance-related costs. The same benefits carry over to the MQP.
How the MQP Works
You increase your flexibility by opting into the MQP when you terminate your registration with a FINRA-member firm. Rather than losing your qualifications after two years, you can extend the time to requalification to five years if you want to step away or affiliate with a non-FINRA-member firm — so long as you complete the required annual CE and follow the program’s rules, you won’t have to retake your representative-level exams.
That extra time is especially valuable for those who are becoming investment adviser representatives without a broker-dealer affiliation. It gives breakaway advisors room to explore their options — or to build their own firm — without the clock forcing a premature decision.
Importantly, the MQP does not eliminate the two-year qualification termination period. It is an optional alternative: if you don’t opt in, your qualifications still lapse after two years out of the industry.
Who Is Eligible for the MQP?
To participate in the MQP, you generally must:
- have been registered in the terminated registration category for at least one year immediately before that category was terminated; and
- elect to participate within two years of the termination — either when your Form U5 is filed or any time within that two-year window.
You cannot enroll if you have been CE inactive for two consecutive years, and you will be removed from the program if you become CE inactive for two consecutive years or become subject to a statutory disqualification while enrolled.
Does the MQP Cover State Exams Like the Series 63 or 65?
This is where many advisors get tripped up. The MQP is a FINRA program, so it preserves your FINRA representative-level qualifications — the Series 7, Series 79, Series 24, and similar exams. It does not extend the validity of the state securities exams administered under NASAA, most notably the Series 63, Series 65, and Series 66.
That distinction matters most if you are leaving a broker-dealer to become an investment adviser representative or to register your own firm at the state or SEC level, because the Series 65 (or the Series 66 paired with the Series 7) is what qualifies you at the state level. To address the gap, NASAA created a separate Examination Validity Extension Program (EVEP) that some — but not all — states have adopted. An advisor relying on the MQP for FINRA exams should confirm how each relevant state treats the Series 63, 65, or 66 before counting on a full five-year runway.
How to Enroll in the MQP
Enrollment runs through FINRA’s Financial Professional Gateway (FinPro):
- Sign up or log in to FinPro. This is where you review your Form U4, enroll eligible registrations, receive notifications from FINRA, and track your CE completion dates and status.
- Elect to participate at (or within two years of) termination. When your registration is terminated, you choose whether to opt into the MQP. If you don’t plan to return to the industry, you can decline.
- Complete your required coursework each year. MQP participants must complete both the Regulatory Element and the Practical Element of their CE annually, by December 31, for each registration category they hold.
There is an annual participation fee, and the current amount and key dates are posted on FINRA’s MQP page. More information is available there, or from FINRA’s call center at (301) 590-6500 if your questions can’t be answered online.
It’s essential to note that you are solely responsible for completing the CE required to stay active in the program by December 31 each year. Don’t make the mistake of relying on a current or previous compliance team to do it for you — this is a form of self-compliance, and only you can ensure the required CE is completed on time.
Frequently Asked Questions
How Long Do FINRA Licenses Last After You Leave the Industry?
By default, your FINRA qualifications terminate two years after you leave a member firm, after which you generally must requalify by examination. If you enroll in the Maintaining Qualifications Program and complete the required annual CE, you can extend that window to a maximum of five years.
Who Is Eligible for the MQP?
You must have been registered in the terminated registration category for at least one year before it was terminated and must elect to participate within two years of termination. You are ineligible if you have been CE inactive for two consecutive years.
Does the MQP Cover State Exams Like the Series 63 or 65?
No. The MQP preserves FINRA representative-level exams (such as the Series 7 or Series 24) but not the NASAA-administered state exams — the Series 63, 65, and 66. Those are governed by state rules and NASAA’s separate Examination Validity Extension Program, which not every state has adopted.
Thinking About Going Independent?
For many advisors, the MQP is one piece of a much bigger decision: whether to strike out on your own. If you’re leaving a broker-dealer to register your own advisory firm, the team at Core Compliance can help — from thinking through the move to handling your registration and building a compliance program from day one. For more information or assistance, contact us at (619) 278-0020.
[1] https://www.finra.org/rules-guidance/notices/21-41
