Registered Representatives with a broker-dealer presently have two years from their date of leaving a firm to re-register with another firm. Otherwise their qualifications, and especially their passed examinations, would lapse. Reps would sometimes try to “park” their registration at a firm to avoid having to re-take examinations. Nobody wants to re-take those exams.
FINRA just allowed for a five year gap between firms, as long as the rep takes continuing education. Effective as of March 2022, FINRA amended Rules 1210 and 1240 to create a new Maintaining Qualifications Program (MQP). That gives a rep five years to find that new firm or to explore a new opportunity before losing qualification and having to re-take exams. During those five years, the rep will have to take a new set of continuing education requirements each year during the gap between firms.
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