As the summer draws to a close, families around the country begin thinking about the start of a new school year. Clearly, this is a time of beginnings. Students from pre-school through college gear up for the start of a new year of teachers, books, classes, books, friends and more.

For those with firm element continuing education responsibilities at a broker-dealer, this time of year is typically spent on endings. With roughly 2/3 of the year gone by, the focus is usually on wrapping up the plan for the current year. While it is important to ensure that all covered persons complete their requirements for the current year, this is also the perfect time to start working on the needs analysis for the 2010 firm element continuing education plan. Starting work early allows the firm to have the plan ready to roll out right at the first of the year. This gives the covered persons plenty of time to complete the plan. It also permits the firm to set a deadline which allows sufficient time to chase down the tardy finishers prior to having to impose any sort of disciplinary action.

The firm analysis is the cornerstone of a firm element continuing education plan. If the needs analysis fails to address all of the relevant areas of the firm's business, the plan is likely to be found wanting during the next regulatory examination. Below, I have listed some of the key factors to consider when preparing the needs analysis. Of course some of these factors may be inapplicable to a particular firm. Like most of compliance, these factors must be tailored to the specifics of a firm's business.

• The Firm Element Advisory - Semi-annually, the Securities Industry/Regulatory Council on Continuing Education publishes the Firm Element Advisory. This document lists a number of potential topics and relevant regulatory resources. It is available through the FINRA website or directly from the Council at www.cecouncil.com.
• New Products - One of the best ways to protect the firm and demonstrate that the needs analysis was tailored is to address new products being offered by the firm. This should include any new products offered during 2009 as well as any anticipated new offerings for 2010.
• Regulatory Examinations - If the firm was examined by FINRA, the SEC or another regulatory body and deficiencies were noted, determine if there is a way to address them in the needs analysis.
• Office Audits - Look back over the office audits conducted during 2009. If there is a discernible pattern pattern of issues that were uncovered, look for ways to address them in the 2010 plan.
• Customer Complaints and Disciplinary Actions - Review the customer complaints received by the firm and those instances where the firm took disciplinary action against covered persons. Are there common themes that should be addressed in 2010?
• Regulatory Element Continuing Education Results - Take a look at the data provided by FINRA for registered representatives who completed regulatory element continuing education during the past year. While the categories are broad, this can still be useful quantitative data.
• Survey of Covered Persons - One of the easiest areas to overlook. Ask the covered persons what they liked and disliked about the current plan and those where they feel they need further education. As a bonus, surveys will strengthen buy-in of the covered persons for the plan.