Have you heard? California is now one of the most recent states to officially implement the NASAA IAR CE requirement.
As an authorized provider of IAR CE courses, COMPLY continually makes it a priority to keep our clients in the know when it comes to new updates and requirements. And with this most recent update, we thought it might be time to offer our readers a little refresher on what the requirement is, what states have or plan to implement the requirement, and how you can ensure compliance with this rule.
Ready to tackle IAR CE compliance with COMPLY by your side?
What is the NASAA IAR CE Model Rule?
As stated on the NASAA website, this organization is “the oldest international organization devoted to investor protection. NASAA is a voluntary association whose membership consists of the securities regulators in the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, the 13 provincial and territorial securities regulators in Canada, and the securities regulator in México.”
NASAA has implemented multiple model rules ranging from examination to registration and more. The NASAA IAR CE Model Rule mandates certain requirements for ongoing continued education. At a glance, highlights of the IAR CE Model Rule include:
- NASAA adopted the IAR CE Model Rule in 2020
- The rule mandates a total of 12 credits to be completed annually:
- 6 credits in IAR Ethics and Professional Responsibility Requirement with at least 3 credits in Ethics
- 6 credits in IAR Products and Practice Requirement
- IARs must obtain these credit hours through authorized providers and the provider must report the credit hours to FINRA upon completion
- Credits do not carry over to the next calendar year
- If an IAR does not fulfill their credit hours, they have the opportunity to make up those credit hours in the next calendar year, however registration can be suspended during this time
- IARs can track credits hours through FinPro
What States Have Adopted NASAA’s IAR CE Model Rule?
While the NASAA IAR CE Model rule is not necessarily new to the compliance world, as more states continue to implement the requirement, additional firms and their individual investment advisors will face the implications of the rule.
According to NASAA’s website, the following states/jurisdictions have implemented or plan to implement the IAR CE requirement:
- Arkansas (effective in 2023)
- California (effective in 2024)
- Colorado (effective in 2024)
- Florida (effective in 2024)
- Hawaii (effective in 2024)
- Kentucky (effective in 2023)
- Maryland (effective in 2022)
- Michigan (effective in 2023)
- Mississippi (effective in 2022)
- Nevada (effective in 2024)
- North Dakota (effective in 2024)
- Oklahoma (effective in 2023)
- Oregon (effective in 2023)
- South Carolina (effective in 2023)
- Tennessee (effective in 2024)
- Vermont (effective in 2022)
- Washington, D.C. (effective in 2023)
- Wisconsin (effective in 2023)
- U.S. Virgin Islands (effective in 2025)
However, it should be noted additional states and jurisdictions may be added to the list. We recommend regularly checking the website for any updates.
How Can You COMPLY?
As an authorized provider of IAR CE courses, COMPLY offers firms large and small the opportunity to easily navigate this annual regulatory hurdle.
Manage course load for your individual IARs, allowing your individual representatives the opportunity to select the courses that are most relevant and pertinent to their day-to-day jobs and future career goals.
COMPLY’s IAR CE courses are created by former regulators, compliance consultants, and cybersecurity experts…and with hours of available – and on-demand – content, your IARs and your firm are set up for success.
When it comes to compliance, school is always in session. Ready to see how we can help you streamline your IAR CE compliance requirements? Let’s talk.