Achievable FINRA course content updated for new SEC T+1 settlement rules

Achievable is committed to providing the most current and comprehensive education resources for FINRA and NASAA exams. As a part of this, we’re updating all our FINRA and NASAA prep courses to align with the recent amendments by the Securities and Exchange Commission (SEC) regarding the T+1 settlement cycle.

What is Settlement?

You probably already know this, but just to make sure we’re all on the same page, let’s review the SEC’s definition of Settlement:

When you buy or sell securities, “settlement” refers to the official transfer of securities to the buyer’s account and the cash to seller’s account. Since 2017, the settlement cycle – the time between the transaction date and the settlement date – for most securities transactions has been two business days – often referred to as “T+2.” Under “T+2,” if you sold shares of ABC stock on Monday, the transaction would settle on Wednesday.

Change to new T+1 settlement cycle

As of May 28th, 2024, the SEC has transitioned the entire US securities industry from a T+2 to a T+1 settlement cycle. Simply put, this means that settlement will typically one business day (T+1) rather than two days (T+2).

This change is meant to make securities markets more efficient and responsive, in response to the always-on, fast-moving modern world of finance. By shortening the settlement period for securities transactions, the SEC aims to reduce market risk and improve investors’ overall trading experience. For detailed insights into the T+1 settlement cycle, we recommend reviewing the official SEC announcement and FINRA’s investor insights on the subject.

Updates to Achievable’s FINRA and NASAA course content

As of May 27th, we will have updated our FINRA and NASAA courses to reflect these new regulations. This includes comprehensive revisions to sections that cover settlement dates and procedures, ensuring that all content is consistent with the latest SEC guidelines.

Achievable customers can be confident that their study materials are aligned with the latest industry standards and practices. By incorporating the new T+1 settlement rules into our courses, our customers will be properly prepared for relevant questions on the FINRA and NASAA exams.

We encourage current and prospective learners to explore the updated courses and familiarize themselves with the changes. Our support team is available to answer any questions.

Tyler York

17 May 2024, 2 min read