In 2020, the North American Securities Administrators Association (NASAA) voted to create a model rule which allows NASAA members to implement continuing education (CE) credit requirements for investment adviser representatives (IAR) in their jurisdictions. This new rule was released in 2022.
While these changes only impact IARs who are registered in the participating states, it’s likely that more states will adopt the IAR CE rule in the coming years. Which means, regardless of what state you live in, it’s imperative you stay up to date on the IAR CE requirements.
What is IAR CE Rule and who has to meet the continuing education requirements?
The IAR CE are regulations which impact IARs in participating states. According to NASAA, the following states require IARs to complete 12 CE credits annually:
- Arkansas.
- Kentucky.
- Michigan.
- Mississippi.
- Oklahoma.
- Oregon.
- South Carolina.
- Vermont.
- Washington, D.C.
- Wisconsin.
What are the 2023 IAR CE requirements?
Per the IAR CE requirements, IARs will need to complete a total of 12 hours of CE, including:
- Six credits in ethics and professional responsibility.
- Six credits in products and practice.
Each state may have its own specific CE requirements, so it’s essential for IARs to review their state’s regulations and rules to ensure they are meeting all of the necessary requirements. Some states may require additional CE hours or specific courses that may not be required in other states.
How do investment advisers meet the IAR CE requirements?
So, how do you meet the CE requirements? Fortunately, IARs have several options, including:
- Attending in-person or online CE courses offered by approved providers.
- Completing self-study courses or webinars.
- Participating in industry conferences or seminars.
It’s important to note CE courses must be taken from approved providers, like COMPLY, and IARs should verify the courses they take meet the requirements of their state.
What happens if an investment adviser fails to meet the IAR CE requirements?
Failing to meet the IAR CE requirements results in:
- Year 1: Registration status becomes “CE Inactive.”
- Year 2: Loss of license “Fail to Renew.”
This could be damaging not only for the individual IAR, but also the investment firm to which they belong. IARs should take the CE requirements seriously and ensure that they are meeting all of the necessary requirements. Fortunately, IARs have several options available to them to help them meet the IAR CE requirements.
RIA in a Box is offers various resources to help IARs meet the demands of the regulatory environment, including CE requirements. RIA in a Box offers CE courses that are designed to meet the core and elective subject areas required by state securities regulators and the Securities and Exchange Commission (SEC). Our courses are offered online, and IARs can access them at their convenience. Courses include:
- An overview of regulatory audits.
- Being a fiduciary.
- Code of Ethics 101.
- Custody 101.
- Defining investment advice.
RIA in a Box also offers a CE tracking system to help IARs keep track of their CE credits and ensure they are meeting all necessary requirements. Additionally, RIA in a Box provides customized CE solutions for firms and can tailor their courses to meet the unique needs of individual firms and their employees.
By leveraging RIA in a Box, advisers can improve their operations, provide a better client experience, and stay ahead of the curve when it comes to compliance and regulatory issues.