NASAA launches program letting advisors maintain licenses longer while out of industry

investmentnews.com:

Sue Gardiner quit her position as a financial advisor about a year ago to tend to some family matters. She was only gone a couple of months, but she could hear the clock ticking on her industry licenses.

Advisors used to be able to retain their qualifications from passing broker and investment advisor exams for only two years if they left the financial industry. But under new rules promulgated by Finra and state securities regulators last year, that grace period has been pushed out to five years.

The North American Securities Administrators Association announced Wednesday the launch of its Exam Validity Extension Program, the technology component that will help advisors enroll in extended leave.

Gardiner, owner of South County Wealth Planning, welcomes the additional leeway.

“As a mother of three young kids — ages 2 to 7 — I am so pleased to see NASAA recognizing the need for some flexibility for the unpredictable circumstances life presents,” Gardiner said. “The current two-year standard can be limiting. If you step away from registration with a jurisdiction for a year, that only leaves you another year to begin a job search and land a job in time to keep your licensing.”

Eligible state-registered advisors can sign up for NASAA’s EVEP through their Financial Professional Gateway, or Finpro, account and extend their Series 63 exam qualification for up to five years, according to the NASAA announcement. Advisors must pay a $35 annual fee and meet continuing education requirements.

The Series 63 is a state registration requirement for broker-dealers. Later this year, NASAA will roll out a similar program for the Series 65 exam for investment advisor representatives. The extended validity is recognized when an advisor