Announcements

Dropping States During the Annual Registration Renewal Process

It was recently announced financial professionals will no longer be required to maintain securities registration in states where they do not have a residence or place of business and only serve advisory clients. We are thrilled to hear about this policy change and feel it makes things easier for FPs doing only fee-based business. That said, we wanted to note a few important things:

• You are still required to be securities registered in your resident state + any state you have a branch office location
• Texas, Puerto Rico, or US Virgin Islands are exempt from this new rule – so even if you only have 1 advisory client in those state, you still have to keep the registration
• Future recommendations for brokerage/commission products would still trigger registration requirements
• Variable annuities require state securities registration, even if they are purchased load-waived and subaccounts are managed under an advisory agreement

Keep in mind you have until December 13th, to submit changes to your state registrations. If you are unsure about the information above and are considering dropping a state, please reach out to our team (support@pjadvisorgroup.com) or the CIR Registration and Licensing Team (licensing@cir2.com).

Compliance Reminders

FINRA CE Reminder

As you are aware FINRA has requirements for CE credits that are due by December 31st. We highly encourage everyone to not wait until the last few days to complete these requirements.

• You are required to complete the Regulatory Element annually via FINRA’s FinPro system
• Please note, the Regulatory Element is a FINRA requirement and is separate from Cambridge’s Firm Element requirements, and IAR CE requirements that have been adopted by some states.
• Complete it now:  https://www.finra.org/registration-exams-ce/finpro/ce

Please note, if you fail to complete your Regulatory Continuing Education, you will have to cease all business immediately until you have completed your required CE.

Account Periodic Review

Cambridge recently launched a module in CLIC Trade Review called Account Periodic Review.  It will run on a quarterly basis to identify accounts with high turnover, large concentrations in a single security and account with higher-than-expected commissions. (FINRA Suitability Rule 2111) It’s important for you to know that we may request additional information from you to help address any flagged accounts.

• Where is it located:  You can view the Account Periodic in CLIC, Trade Review, Under Review select Account Periodic the Review Summary.   This is where you can address any flags and pend back to Direct Supervisor.  We will notify you if there’s an account(s) that require your feedback.
• Difference Between Trade Summary Flags and Account Periodic Review Flags.CLIC Trade Summary Flags – flags are generated based on individual trades.

  CLIC Periodic Review – flags are generated on account activity and allocation over a specific time period.

Upcoming Events

Cambridge Community of Women Forum | February 8-10, 2024 | Fort Lauderdale, FL – Register Here

PJ Advisor Group Annual Enterprise Meeting | April 21-24, 2024 | Tempe, AZ- RSVP HERE

Cambridge Accelerate | May 6-8, 2024 | Scottsdale, AZ

*We highly recommend sending your administrative staff to this!

2024 Ignite Cambridge | August 20-23 | Gaylord Rockies Resort | Aurora, CO

Cambridge Virtual Events – For information on Cambridge’s virtual webinars, please visit this link.

Helpful Resources

• Disclosure Checklist, Chart and Resources – Click here
• Terminating a Client – Guide
• Vulnerable Client Documentation Process – Click here
• Diminished Capacity Documentation Process – Click here
• Vulnerable Client Intake Form – Click here

Just a reminder that all of these helpful resources and more, can be found on the PJ website under Advisor Login. Call our office if you forgot the password.