Applicability of IAR CE Requirements
The IAR CE requirement is mandatory for every Investment Adviser Representative (IAR) registered in a jurisdiction that has adopted the model rule. This requirement affects the IARs of both state-registered and federally-covered investment advisers within those jurisdictions. It is important to note that the applicability of these requirements is based solely on where the IAR is registered, irrespective of the location of the IA firm’s registration or notice filing.
CE Credit Requirements
To maintain active IAR registration, representatives must complete 12 Continuing Education (CE) credits annually. These credits are categorized into two main components:
Products and Practices: 6 credits
Ethics and Professional Responsibility: 6 credits
Each credit represents at least 50 minutes of educational instruction as designated by the North American Securities Administrators Association (NASAA). Compliance with the CE requirement is strict; for instance, obtaining 8 credits in Products and Practices and 4 in Ethics will not fulfill the requirement, even though the total is 12 credits.
Detailed Component Breakdown
Products and Practices: This component ensures that IARs remain knowledgeable and competent regarding investment products, strategies, standards, and compliance practices relevant to the advisory industry. IARs who are also registered as broker-dealer agents may use their completed FINRA Regulatory Element CE to satisfy this requirement.
Ethics and Professional Responsibility: This component is designed to enhance the IAR’s understanding of their duties and obligations towards clients, focusing significantly on the fiduciary duty owed. Courses must ensure that at least 50% of their material covers ethical responsibilities. Completing the required 6 credits in this area ensures that IARs meet the necessary 3 credits of ethics mandated by the Model Rule.
Course Bundles Offered by Adviser CE
To facilitate compliance with these CE requirements, Adviser CE offers specialized course bundles designed to fully satisfy the IAR CE needs. These bundles are tailored to ensure that all IARs can meet their annual education requirements efficiently and effectively:
Investment Advisory Representatives 12-hour Continuing Education Bundle: This comprehensive bundle covers all required 12 CE credits for the year, split equally between the Products and Practices and Ethics and Professional Responsibility components. Model details.
Ethics & Professional Responsibility 6-hour CE Bundle for Investment Advisory Representatives: This bundle focuses exclusively on the Ethics and Professional Responsibility component, providing the full 6 credits needed in this crucial area. More details.
Products and Practices 6-hour CE Bundle for Investment Advisory Representatives: This bundle provides 6 credits that encompass essential knowledge about investment strategies, products, and compliance practices. It is aimed at covering the Products and Practices component. More details.
These bundles are crafted to not only meet regulatory requirements but also to enhance the practical knowledge and ethical standards of IARs. Enrolling in these courses ensures that all educational content has been pre-approved and is tailored to meet the specific needs of investment advisers.
Flexible Individual Course Offerings
In addition to our comprehensive course bundles, Adviser CE also provides individual courses designed to offer flexibility for IARs. These courses are available in 1-, 2-, or 3-hour credits, perfect for advisers who may receive some CE credits from other sources but need additional credits to meet their annual requirements. These individual courses allow IARs to tailor their learning experiences to fit their specific needs and schedules.
Explore our full catalog of individual courses and bundles tailored for Investment Adviser Representatives by visiting the following links:
By providing both bundled and individual course options, Adviser CE ensures that every IAR has access to the necessary resources to effectively comply with continuing education requirements.
Additional Rules and Regulations
Carryover Credits: IARs cannot carry forward any excess CE credits completed in a year to the next year.
Course Repetition: IAR CE tracking includes courses completed more than once in the course transcript section within the Central Registration Depository (CRD). However, repeated courses do not count towards the annual CE requirements. Each course must be identified by a unique course number to qualify for credits.
Conclusion
Compliance with IAR CE requirements is essential for maintaining registration and ensuring continued competence in the investment advisory field. IARs must carefully plan their educational activities to meet both the quantitative and qualitative aspects of these requirements. For any further assistance, please contact our support team or refer to the NASAA guidelines on Continuing Education.
Best regards,
The Adviser CE Team