The organisations said the arrangement would involve CISI helping to provide FINRA member, UK-based retail investment advisers with a programme that would enable them to meet the new UK exam standards, in order to continue to be able to advise on securities and derivatives in the UK market, while still being able to be CISI members.
FINRA is the largest non-governmental regulator overseeing securities firms active in the US, while CISI, which is based in London and is also a non-governmental organisation, operates in a number of key global markets and like FINRA, is responsible for setting exams and offering qualifications to those working in the securities and investment industry.
According to CISI, all holders of FINRA’s Series 7 qualification who are operating in the UK will now be required to possess additional knowledge, and agree to adhere to new, mandatory ethical standards, whether they are already FSA-authorised, or plan at some point to seek FSA authorisation as retail advisers permitted to advise clients on securities and/or derivatives.
The FINRA/CISI memorandum of understanding (MoU) “will ensure that relevant FINRA members holding the Series 7 ‘General Securities Representative Examination’ will be able to maintain or achieve authorisation as Retail Investment Advisers in Securities and/or Derivatives from the FSA”, CISI said in a statement today.
Under the terms of the MoU, FINRA and CISI envisage the potential for FINRA to offer CISI exams, in particular those required to meet the FSA benchmark standard for qualification as Retail Investment Advisers in Securities, the statement added.
FINRA members holding the Series 7 qualification will be offered the Associate Member (ACSI) grade of CISI membership, or full membership (MCSI), where they satisfy qualification and experience criteria, CISI said.
To read the CISI statement in full, click here.
