Course Requirements

All Courses must include three basic components to be considered for the IAR CE Program: (a) appropriate educational content, (b) a suitable presentation format, and (c) a methodology for assessment or opportunities for engagement.

Educational Content

To be approved for the IAR CE Program, Courses must contain content that is informative, accurate, and relevant to the professional duties and responsibilities of investment adviser representatives. NASAA will review Course applications for the following characteristics.:

Does the proposed Course–

• Consist of a formal program of study that contributes directly to the professional competence of investment adviser representatives?
• Contain current, relevant, and accurate information (with valid reference materials, graphics or interactivity)?
• Address one or more topics derived from state, federal, or self-regulatory organization (SRO) laws, rules or regulations, or from generally accepted standards and practices of the financial services industry or the compliance, regulatory, ethical, and/or industry standards for investment advisers and investment adviser representatives?
• Provide specific instructions for enrollees on how to register, navigate, and complete the Course of study?
• Provide technical support for enrollees during normal business hours to assist them in accessing and completing the Course?
• Incorporate a methodology for assessing enrollees’ proficiency with the subject matter addressed in the Course?

The IAR CE Program recognizes two categories of educational content: Products and Practice training and Ethics and Professional Responsibility training. NASAA’s IAR CE Model Rule requires investment adviser representatives to complete 6.0 credits of Products and Practice training and 6.0 credits of Ethics and Professional Responsibility training annually (with at least three (3) credits covering the topic of ethics). Courses can qualify for credit as either Products and Practice training or as Ethics and Professional Responsibility training. NASAA will assign the qualifying credits to a Course during the Course review and approval process. NASAA will do so according to the following standards.

Products and Practice Training

Courses categorized as Products and Practice should address the business aspects of being a successful investment adviser representative. These Courses can cover any of the wide variety of issues raised by modern finance, from portfolio theory to the characteristics of specific investment products. Internal corporate compliance best practices can also qualify for Products and Practice credit (though if the content veers into specific ethical or regulatory issues, it will be treated as Ethics and Professional Responsibility training).

Ethics and Professional Responsibility Training

Courses on Ethics and Professional Responsibility should address the legal aspects of a successful investment adviser representative with at least half of the content addressing ethics. Courses can cover ethical issues raised in an investment advisory relationship and/or legal principles and regulatory requirements governing investment advisers. The NASAA Model Rule requires investment adviser representatives to complete 6.0 credits of Ethics and Professional Responsibility training annually (with at least three (3) credits covering the topic of ethics).

Courses categorized as Ethics and Professional Responsibility should address ethical issues in the investment advisory context, such as the resolution of conflicts of interest, ethical decision-making in complex or unique advisory situations, or the purposes underlying federal or state regulations. Non-ethics training can cover any of the federal or state laws and regulations that govern the work of investment adviser representatives (including laws and regulations outside the securities field).

Complexity

Courses can be of any complexity. The IAR CE Course Application requires Content Providers to assign each Course a general complexity level—Beginner, Intermediate or Advanced. The level of complexity should reflect the anticipated knowledge and experience required for enrollees. Content Providers can use the following guidance in assigning complexity levels.

• Courses at the Beginner level should be designed for enrollees who are new to the investment adviser profession. These Courses will address fundamental concepts, principles, and practices, reinforcing (or providing) foundational knowledge that enrollees should have learned prior to becoming licensed as investment adviser representatives. Beginner level Courses typically focus on basic terminology, key ideas, and essential processes, with content presented in an accessible and straightforward manner.
• Intermediate. Intermediate level Courses are intended for enrollees who have worked as an investment adviser representative for several years and possess the foundational knowledge encapsulated at the Beginner level. Intermediate Courses will delve deeper into the subject matter, exploring more complex concepts, new or emerging issues in the financial industry, or real-world applications of theoretical principles. Intermediate level Courses aim to enhance enrollees’ knowledge, refine their skills, and foster a more nuanced comprehension of topics.
• Advanced. Advanced level Courses cater to experienced professionals with extensive knowledge and expertise in the securities industry (generally at least 10 years of professional experience). These Courses tackle highly specialized, intricate, and cutting-edge topics, challenging enrollees to think critically, analyze complex scenarios, and develop innovative solutions. Advanced level Courses often incorporate industry best practices, emerging trends, and sophisticated techniques, enabling participants to stay at the forefront of their profession. A solid grasp of Beginner and Intermediate level coursework should be assumed, with content presented at a high level of detail and complexity.

Presentation Format

Courses can be presented in a variety of ways. At the most basic level, a Course could be presented through written Course materials only. Most Courses, though, will include some form of audio or visual presentation. This could be in the structure of a formal lecture by an Instructor, an informal guided dialogue between an Instructor and enrollees, a panel discussion among multiple Instructors, or a prerecorded audiovisual presentation with potentially no personified Instructor at all.  Courses can be Self-Study, Live, or developed for multiple formats.  Self-Study Course formats are not guided by a live instructor, such as video or text.  Live course formats are guided by a live instructor, such as an in-person seminar or an online live webinar.

Learning Objectives

Courses must include one or more learning objectives. Learning objectives serve to guide the Course content and the Course outline (discussed below). Objectives should identify the subjects enrollees will learn about and be expressed as a function of the “ABCD” factors:

• Audience—Who will achieve the objective?
• Behavior—What action will the enrollee perform?
• Condition—Under what circumstances will the Behavior occur?
• Degree—What level of performance is expected of enrollees upon completion?

Objectives should be specific, measurable, action-oriented, relevant to the Course, and time-bound (if appropriate). Objectives can be used in developing assessments and measuring learning outcomes. Here are some examples of learning objectives that incorporate the “ABCD” factors:

• “Participants will prepare income statements that are accurately aligned with state and federal regulations or industry standards.”
• “Enrollees will engage with an experienced financial adviser about complex ethical issues in an investment advisory relationship, including through role playing and scenario building, to spot potential conflicts quickly and address them appropriately.
• “This on-demand training program will educate investment adviser representatives about the updated SEC marketing rule and test attendees’ knowledge.”

Methodology for Assessment

All Courses must have a method for measuring each participant’s successful completion of the Course.  Self-study Courses must include written assessment questions, and Live Courses must include an opportunity for engagement.  Live Courses that will be recorded and offered after the event as an on-demand Course must include both assessment types.

Assessments must align with the stated Course objectives and assess Course content.

Courses without a means of measuring the participant’s successful completion of the Course, including all Course material and any specific Course requirements, will not be approved for IAR CE credit.

As part of the Course approval process, NASAA will review the proposed methodology for assessment according to the following standards:

• Self-study or on-demand Courses must use written questions as the methodology of assessment.
• Live Courses (whether in-person or online) must include an opportunity for engagement as the methodology of assessment. Written questions can also be incorporated.
• Live Courses that will be recorded and offered after the event as an on-demand Course must include both assessment types.

Written Assessments in Self-Study Courses and On-Demand Courses

Written assessments in self-study and on-demand Courses must adhere to the following requirements.

• Assessment questions should be drawn from a question bank. The number of questions required in the bank depends upon the amount of credit being provided by the Course. A chart showing the number of questions required for Courses of varying credit levels is contained below.
• Questions can be multiple choice, true/false, fill in the blank, matching, or short answer.
• Questions should not be viewable or otherwise publicly disclosed prior to an enrollee’s participation in the Course.
• Questions can be assessed at any time in the Course (including at multiple points during a Course).
• The Content Provider must apply controls to validate that the person completing the assessment is the same person who enrolled in the Course. To pass a written assessment, enrollees must answer at least 70% of the questions correctly. Enrollees can be permitted to take the written assessment up to three times in their attempt to pass. Alternate questions from the question bank should be incorporated into subsequent assessments so that enrollees are not asked the same questions repeatedly. If an enrollee does not pass the assessment after three tries, the enrollee must rewatch the Course content before attempting the assessment again.

Opportunities for Engagement in Live Courses

Live Courses, whether held in-person or in an online webinar, must include an opportunity for engagement as their assessment methodology.  Opportunities for engagement in Live Courses must:

• Include at least one interactive element for each credit of instruction.
• Use interactive elements that encourage enrollee participation or engagement with the Course material. Examples of interactive elements include opportunities for question and answer, polling the audience, role playing, simulations or games, case study or group discussions, or problem-solving exercises.