Final answer:
The firm element of a broker-dealer's CE requirement must be undergone by registered persons who have direct contact with the public.
Step-by-step explanation:
The firm element of a broker-dealer's continuing education (CE) requirement is specifically designed to ensure that registered persons stay updated with the changes in the industry, regulations, and job functions. According to FINRA (Financial Industry Regulatory Authority) rules, the firm element applies to any registered individuals who have direct contact with the public and those who supervise such activities. This includes sales, trading, and investment banking activities. The primary goal is to enhance the professional competence and knowledge of these individuals.
It is important for a broker-dealer to maintain compliance with regulatory requirements to avoid penalties and remain eligible for federal financial aid funds, just as colleges and universities must comply with provisions such as the Clery Act to remain eligible for federal funds.
So, to answer the student's question, the firm element of a broker-dealer's CE requirement must be undergone by all registered persons who have direct contact with the public.