NASAA program lets brokers who leave industry go five years without retaking exams

By paying a $35 fee and completing some continuing education, brokers who've temporarily left the industry would be able to keep their certifications for five years under a new program for state regulators.

The North American Securities Administrators Association, which represents state and provincial regulators in the U.S., Canada and Mexico, introduced its Exam Validity Extension Program, or EVEP, to let brokers retain their Series 63 exam certification for five years even if they've let their official state registrations lapse. Previously, brokers who took a hiatus from the industry had been able to keep their certifications only for two years without retaking the exams. 

The Series 63 generally qualifies takers for registration at the state level for activities ranging from trading stocks, bonds and other securities. NASAA is also working on an EVEP for investment advisor representatives who have passed the Series 65, which allows them to recommend investment strategies and manage client portfolios.

To sign up for NASAA's EVEP for the Series 63, brokers will have to use their FinPro online account offered through the Financial Industry Regulatory Authority, the broker-dealer industry's self regulator. But to be able to enjoy a five-year grace period before having to retake the Series 63, brokers have to live in a state that has adopted NASAA's model rule allowing the extension past two years. So far, only Minnesota has taken that step.

NASAA adopted model rules allowing the five-year grace period for both broker and investment advisor representatives last September. FINRA adopted a similar rule for federally registered brokers in March 2022.

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Taking part in NASAA's EVEP costs $35 a year and requires participants to fulfill various continuing-education requirements.