WASHINGTON, D.C. (November 30, 2020) —The North American Securities Administrators Association (NASAA) announced today that its membership has voted to adopt a model rule to set parameters by which NASAA members could implement continuing education programs for investment adviser representatives in their jurisdictions. The model rule has a products and practices component and an ethics component and is intended to be compatible with other continuing education programs.
“This model rule represents the culmination of years of work by state securities regulators and industry to develop a relevant and responsive continuing education program,” said Lisa A. Hopkins, NASAA President and West Virginia Senior Deputy Securities Commissioner. “This successful collaboration will help promote heightened regulatory compliance while also helping investment adviser representatives better serve their clients by remaining knowledgeable of current regulatory requirements and best practices.”
Investment adviser representatives (IARs) play an important role in the financial lives of millions of Americans by providing advice on important financial decisions such as retirement planning. However, unlike other financial service professions, IARs are not subject to a continuing education requirement to maintain their licenses with state regulators. The model rule will help NASAA members close this gap by requiring IARs to take 12 hours of continuing education annually.
The model rule is the result of several years of work by the NASAA Investment Adviser Representative Continuing Education Committee, chaired by Linda Cena, Examination and Licensing Manager for the Michigan Corporations, Securities & Commercial Licensing Bureau. The committee conducted substantial outreach efforts and considered comments from regulators and the securities industry in developing the model rule.
The model rule will be available for NASAA members to consider adopting in their own jurisdictions. A copy of the model rule is available on NASAA’s website, here.
For More Information:
Bob Webster | Director of Communications
Noelle Lane | Communications & Outreach Specialist