8011-01P
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100265; File No. SR-IEX-2024-10]
Self-Regulatory Organizations: Investors Exchange LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change to Amend IEX Rule 2.160(p) to Reopen the Period
by which Certain Participants in the Maintaining Qualifications Program Will Be Able to
Complete Their Prescribed 2022 and 2023 Continuing Education Content
June 4, 2024.
Pursuant to Section 19(b)(1)1 of the Securities Exchange Act of 1934 (the “Act”)2 and
Rule 19b-4 thereunder,3 notice is hereby given that, on May 22, 2024, the Investors Exchange
LLC (“IEX” or the “Exchange”) filed with the Securities and Exchange Commission (the
“Commission”) the proposed rule change as described in Items I and II below, which Items have
been prepared by the self-regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
I.

Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed
Rule Change
Pursuant to the provisions of Section 19(b)(1) under the Act4, and Rule 19b-4

thereunder5, the Exchange is filing with the Commission a proposed rule change to amend IEX
Rule 2.160(p) to reopen the period by which certain participants in the Maintaining
Qualifications Program will be able to complete their prescribed 2022 and 2023 continuing
education content. The Exchange has designated this proposal as non-controversial pursuant to

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

15 U.S.C. 78a.

17 CFR 240.19b-4.

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

17 CFR 240.19b-4.

Section 19(b)(3)(A)(iii) of the Act6 and provided the Commission with the notice required by
Rule 19b-4(f)(6)(iii) thereunder.7
The text of the proposed rule change is available at the Exchange’s website at
www.iextrading.com, at the principal office of the Exchange, and at the Commission’s Public
Reference Room.
II.

Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for,
the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization 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. The self-regulatory organization has prepared summaries, set
forth in Sections A, B, and C below, of the most significant aspects of such statements.
A.

Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory
Basis for, the Proposed Rule Change
1.

Purpose

IEX is proposing to amend Supplementary Material .01 to IEX Rule 2.160(p)(c) to
reopen the period by which certain participants in the Maintaining Qualifications Program
(“MQP”) will be able to complete their prescribed 2022 and 2023 continuing education (“CE”)
content. This proposed rule change is based on a substantively similar filing made by the
Financial Industry Regulatory Authority, Inc. (“FINRA”), which amended FINRA’s equivalent
rule, FINRA Rule 1240.01, to reopen the period by which certain participants in the MQP will be
able to complete their prescribed 2022 and 2023 CE.8
FINRA Rule 1240.01, as described in Supplementary Material .01 to IEX Rule
2.160(p)(c), extended the option to participate in the MQP to individuals who: (1) were

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

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

See Securities Exchange Act Release No. 100067 (May 6, 2024) 89 FR 40520 (May 10, 2024) (SRFINRA-2023-005) (“FINRA MQP Extension Filing”).

registered as a representative or principal within two years immediately prior to March 15, 2022
(the implementation date of the MQP); and (2) individuals who were participating in the
Financial Services Affiliate Waiver Program (“FSAWP”)9 pursuant to Supplementary Material
.01 to Rule 2.160(g) immediately prior to March 15, 2022 (collectively, “Look-Back
Individuals”).10 FINRA Rule 1240.01 provided two open enrollment periods for Look-Back
Individuals to participate in the MQP (Supplementary Material .01 to IEX Rule 2.160(p)(c)
provided one open enrollment period for Look-Back Individuals).11 FINRA and IEX provided
all Look-Back Individuals who had enrolled in the MQP until March 31, 2024, to complete any
prescribed 2022 and 2023 CE content.12 Look-Back Individuals who are enrolled in the MQP,
similar to other MQP participants, are able to complete any prescribed CE and renew their
annual MQP participation through their FINRA Financial Professional Gateway (“FinPro”)
accounts.
On March 16, 2024, FINRA on its own behalf and on behalf of IEX, sent an email to
Look-Back Individuals who had enrolled in the MQP but had not completed their prescribed CE

The FSAWP is a waiver program for eligible individuals who have left a member firm to work for a foreign
or domestic financial services affiliate of a member firm. FINRA stopped accepting new participants for
the FSAWP beginning on March 15, 2022; however, individuals who were already participating in the
FSAWP prior to that date had the option of continuing in the FSAWP.

Supplementary Material .01 to IEX Rule 2.160(p)(c) refers to FINRA’s initial enrollment period for “LookBack Individuals” who were registered in a representative or principal registration category with FINRA
within two years immediately preceding March 15, 2022, but that initial enrollment period was not part of
IEX’s rule.

In March 2023, FINRA amended Rule 1240.01 to provide Look-Back Individuals with a second
opportunity to participate in the MQP for eligible persons who elected to participate between March 15,
2023 and December 31, 2023. See Securities Exchange Act Release No. 97184 (March 22, 2023), 88 FR
18359 (March 28, 2023) (SR-FINRA-2023-005). In July 2023, IEX amended Supplementary Material .01
to IEX Rule 2.160(p)(c) to also offer a new enrollment period for eligible persons who elected to
participate between July 13, 2023 and December 31, 2023. See Securities Exchange Act Release No.
97980 (July 25, 2023) 88 FR 49542 (July 31, 2023) (SR-IEX-2023-07).

FINRA determined to treat the individuals who enrolled during the first period (between January 31, 2022,
and March 15, 2022) the same as those who enrolled during the second period (between March 15, 2023,
and December 31, 2023) for purposes of the March 31, 2024, deadline for completion of prescribed 2022
and 2023 CE content. This is because those who had enrolled in the MQP during the first period satisfied
all of the eligibility criteria for enrollment during the second period and would have been able to complete
their prescribed CE content by March 31, 2024, had they chosen to enroll during the second period instead
of enrolling during the first period.

to remind them of the March 31, 2024, deadline.13 In the week leading up to the deadline,
however, FINRA noticed that several thousand of those individuals were renewing their
participation in the MQP for 2024 instead of completing their prescribed CE.14 FINRA believes
that some of those individuals may have been confused by the layout of their FinPro accounts.15
Specifically, if they selected the 2024 renewal banner, which was prominently displayed on their
FinPro accounts, and completed the renewal process, they would not have been automatically
redirected to complete any prescribed CE. Therefore, individuals may have inadvertently
assumed that completion of the renewal process alone would have satisfied all of the necessary
requirements to continue their participation in the MQP.16
For these reasons, FINRA amended Rule 1240.01 to reopen the period by which certain
participants in the MQP will be able to complete their prescribed 2022 and 2023 CE.17 IEX now
proposes to amend Supplementary Material .01 to IEX Rule 2.160(p)(c) to implement the
reopening of the MQP completion period close in time with FINRA. Specifically, IEX is
proposing to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who
did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the
opportunity to complete such content between the effective date of filing, and July 1, 2024, to be
eligible to continue their participation in the MQP. IEX is also proposing to amend the rule to

As noted in the FINRA MQP Extension Filing, FINRA had sent multiple reminders prior to March 16,
2024, but the March 16, 2024, email was the last reminder that was sent prior to the March 31, 2024,
deadline for completion of any prescribed 2022 and 2023 CE content.

Look-Back Individuals who enrolled in the MQP have until December 31, 2024, to renew their
participation in the MQP for 2024, provided that they complete their prescribed CE by the stated deadline.

See supra note 8.

A number of these individuals contacted FINRA to confirm whether they were required to satisfy any
additional requirements other than completing the 2024 renewal. To provide FINRA with additional time to
assess the situation, FINRA temporarily changed the March 31, 2024, due date for CE completion in its
systems. This may have compounded the confusion because any Look-Back Individual who may have
logged into their FinPro account during this time would have seen an interim CE completion date and
would have been able to complete their prescribed CE content based on that interim CE completion date.

In the FINRA MQP Extension Filing, FINRA described its plans to reach out to all impacted individuals
and inform them of the new CE completion period. Additionally, FINRA made changes, and is also
considering future changes, to the layout of FinPro to more effectively communicate the necessary steps
that individuals must take to satisfy their MQP obligations.

provide that any such individuals who will have completed their prescribed 2022 and 2023 CE
content between March 31, 2024, and the effective date of filing, will be deemed to have
completed such content by July 1, 2024, for purposes of the rule.
IEX has filed the proposed rule change for immediate effectiveness and has requested
that the Commission waive the 30-day operative delay. The operative date will be the date of the
filing of the proposed rule change if the Commission grants the waiver.
2.

Statutory Basis

The Exchange believes that its proposal is consistent with the requirements of Sections
6(b)18 and 6(b)(5) of the Act,19 in particular, in that it is designed to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general to protect investors and the public interest.
IEX, like FINRA, believes that reopening the period by which Look-Back Individuals will be
able to complete their prescribed 2022 and 2023 CE content is appropriate under the
circumstances. IEX, like FINRA, believes that Look-Back Individuals who had enrolled in the
MQP in 2022 and 2023 but had not completed their prescribed 2022 and 2023 CE content by the
March 31, 2024, deadline may have been confused, as described above. IEX, like FINRA,
continues to believe that participation in the MQP reduces unnecessary impediments to
requalification without diminishing investor protection.20 In addition, the MQP promotes other
goals, such as diversity and inclusion in the securities industry by attracting and retaining a
broader and diverse group of professionals. The MQP also allows the industry to retain expertise
from skilled individuals, providing investors with the advantage of greater experience among the

15 U.S.C. 78f(b).

15 U.S.C. 78f(b)(5).

As of April 15, 2024, approximately 31,000 individuals, including approximately 20,000 Look-Back
Individuals, have enrolled in the MQP, of which approximately 1,400 individuals have used the MQP to
return to the industry without having to go through requalification.

individuals working in the industry. IEX, like FINRA, believes that reopening the CE completion
period, as proposed, will further these goals and objectives.
The Exchange believes the proposed rule change is consistent with the provisions of
Section 6(b)(5) of the Act, 21 which requires, among other things, that Exchange Rules must 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, and Section
6(c)(3) of the Act,22 which authorizes the Exchange to prescribe standards of training, experience
and competence for persons associated with Exchange.
Finally, as described in the Purpose section, the proposed rule change seeks to align the
Exchange Rules with changes to FINRA rules which have been allowed to take effect by the
Commission.23 Thus, this rule change raises no novel issues that have not already been
considered by and accepted by the Commission.
B.

Self-Regulatory Organization’s Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will impose any burden on
competition that is not necessary or appropriate in furtherance of the purposes of the Act. The
Exchange believes that the proposed rule change, which harmonizes its rules with rule changes
adopted by FINRA, will reduce the regulatory burden placed on market participants engaged in
trading activities across different markets.
C.

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;

15 U.S.C. 78f(b)(5).

15 U.S.C. 78f(c)(3).

See supra note 8.

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
Act24 and Rule 19b-4(f)(6) thereunder.25
A proposed rule change filed under Rule 19b-4(f)(6)26 normally does not become
operative prior to 30 days after the date of the filing. However, pursuant to Rule
19b4(f)(6)(iii),27 the Commission may designate a shorter time if such action is consistent with
the protection of investors and the public interest. The Exchange has asked the Commission to
waive the 30-day operative delay so that the proposed rule change may become operative upon
filing. IEX, like FINRA, requests that the proposed rule change become operative as quickly as
possible so that FINRA, on behalf of IEX, can communicate the rule change to impacted
individuals in a timely manner. Waiver of the 30-day operative delay would also allow the
Exchange to implement the reopening of the MQP completion period in time with FINRA,
thereby substantially eliminating the existence of a regulatory gap between the FINRA and
Exchange rules, providing more uniform standards across the securities industry, and helping to
provide clarity and avoid ongoing confusion for Exchange Members28 that are also FINRA
members. For these reasons, the Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest. Therefore, the Commission
hereby waives the operative delay and designates the proposal operative upon filing.29

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

17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to
give the Commission written notice of its intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least five business days prior to the date
of filing of the proposed rule change, or such shorter time as designated by the Commission. IEX
has satisfied this requirement.

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

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

See IEX Rule 1.160(s).

For purposes only of waiving the 30-day operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f).

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 under Section 19(b)(2)(B)30 of the Act to determine
whether the proposed rule change 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-IEX-2024-10
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.

All submissions should refer to file number SR-IEX-2024-10. 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 (https://www.sec.gov/rules/sro.shtml). Copies
of the submission, all subsequent amendments, all written statements with respect to the
proposed rule change that are filed with the Commission, and all written communications
relating to the proposed rule change between the Commission and any person, other than those

15 U.S.C. 78s(b)(2)(B).

that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission’s Public Reference Room, 100 F
Street NE, Washington, DC 20549, on official business days between the hours of 10:00 a.m.
and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the
principal office of the Exchange. 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-IEX-2024-10 and should be submitted on or
before [INSERT DATE 21 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL
REGISTER].
For the Commission, by the Division of Trading and Markets, pursuant to delegated
authority.31
Sherry R. Haywood,
Assistant Secretary.

[FR Doc. 2024-12591 Filed: 6/7/2024 8:45 am; Publication Date: 6/10/2024]

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