IAR CE Deadline!

We are writing to inform you about the new Continuing Education (CE) requirements for certain Registered Investment Advisers (RIAs), effective under NASAA’s Model Rule for Investment Adviser Representative (IAR) Continuing Education. These requirements impact RIAs in certain states and are designed to ensure financial professionals remain up-to-date on current regulations and best practices.

Key Points:

  • Rule: NASAA’s Model Rule mandates 12 hours of continuing education annually for IARs.
  • Applies to:
  • State-registered IARs in states that have adopted the NASAA Model Rule.
  • SEC-registered IARs if they are required by their state of registration.
  • RRs Outside RIA Business Activities:  If your registered representatives also operate their own RIA away from the broker-dealer, FINRA Rule 3270, FINRA Rule 3280, and FINRA Rule 3110 require that your firm supervises and ensures compliance with these new CE requirements for dual registrants. Broker-dealers must maintain appropriate oversight of their registered representatives’ external business activities, including independent RIAs, to ensure compliance with these continuing education obligations.

States Where the CE Requirement is Effective:

The requirement is already effective or will become effective in the following states:

  • Effective in 2022: Maryland, Mississippi, Vermont
  • Effective in 2023: Arkansas, Kentucky, Michigan, Oklahoma, Oregon, South Carolina, Washington D.C., Wisconsin
  • Effective in 2024: California, Florida, Hawaii, North Dakota, Nevada, Tennessee, Colorado
  • Effective in 2025: Nebraska, New Jersey, Rhode Island, U.S. Virgin Islands

CE Content Requirements:

  • 12 hours of CE annually:
  • 6 hours focused on Products and Practices.
  • 6 hours focused on Ethics and Professional Responsibility.

Approved Providers and Online Course Availability:

The CE requirements can be fulfilled through NASAA-approved courses, many of which are available online for convenience. Some recommended providers include:

Deadlines:

  • Completion by December 31st annually: IARs must complete the required CE by the end of each calendar year.

Additional Considerations:

  • Failure to meet the CE requirements may result in the inability to renew your registration.
  • IARs who are also registered representatives with FINRA may be able to count some of their FINRA Regulatory Element CE towards the NASAA IAR CE requirement.

Please ensure your firm’s IARs are aware of these requirements and complete the necessary education to remain compliant. Feel free to reach out to us with any questions or for assistance in navigating these new requirements.