As the financial services industry evolves, compliance requirements for Investment Adviser Representatives (IARs) continue to grow. A key focus for regulatory bodies has been the rollout of IAR CE across various states.
This year, Nebraska, New Jersey, Minnesota, Rhode Island, and the U.S. Virgin Islands are implementing IAR CE requirements, ensuring their advisers stay informed and equipped to meet the changing demands of the securities industry. If you’re an IAR in one of those states or territories, staying ahead of these changes is crucial to maintaining your registration and compliance.
Here’s a breakdown of what you need to know and how to prepare.
What Is IAR CE?
IAR Continuing Education (CE) ensures that investment adviser representatives maintain their professional knowledge, stay updated on regulatory developments, and enhance their ethical practices. IARs are required to complete 12 hours of CE annually, broken into two categories:
- Products and Practice: Covering technical knowledge related to investments, portfolio management, and financial planning.
- Ethics and Professional Responsibility: Focusing on compliance, fiduciary responsibilities, and ethics.
Dually Registered IARs
An IAR registered with a FINRA member firm and compliant with FINRA’s Regulatory Element CE requirements meets the six-credit Products and Practices content requirement. Essentially, these IARs only need to complete six credits of Ethics and Professional Responsibility content.
The North American Securities Administrators Association (NASAA) has been working to expand IAR CE requirements across the U.S., ensuring consistency and higher standards for the industry.
New States and Territories Requiring IAR CE in 2025
This year, five new states and territories are joining the growing list of jurisdictions requiring IARs to complete CE as part of their registration. While the full details are still emerging, here are the states that have confirmed their adoption of IAR CE in 2025:
Nebraska IAR CE Requirements
- Details: Nebraska adopted the NASAA model rule starting in 2025. IARs are required to complete the standard 12 hours of CE annually.
- Key Consideration: IARs should confirm that their CE provider is NASAA-approved and ensure timely reporting of completed credits.
New Jersey IAR CE Requirements
- Details: New Jersey’s CE requirements also took effect on 2025. IARs must complete 6 hours in Products and Practice and 6 hours in Ethics and Professional Responsibility to meet the state’s CE standards.
- Key Consideration: New Jersey may include state-specific topics as part of the CE curriculum, so it’s important to choose a provider familiar with these nuances.
Minnesota IAR CE Requirements
- Details: Minnesota has adopted the NASAA model rule, effective in 2025. The state mandates 12 hours of CE annually, with 6 hours focused on Products and Practice and 6 hours on Ethics and Professional Responsibility.
- Key Consideration: Ensure your CE provider is NASAA-approved and check for any Minnesota-specific updates to the curriculum.
Rhode Island IAR CE Requirements
- Details: Rhode Island begins enforcing IAR CE requirements in 2025. Similar to other states, IARs must complete 12 hours annually, with an even split between Ethics and Professional Responsibility and Products and Practice.
- Key Consideration: Timely completion and reporting of credits are essential to maintain compliance in Rhode Island.
U.S. Virgin Islands IAR CE Requirements
- Details: Starting in 2025, the U.S. Virgin Islands requires IARs to adhere to the NASAA model rule for CE, which includes 12 hours annually.
- Key Consideration: Check with your CE provider to confirm their approval for the territory and ensure compliance with the NASAA model rule.
Why Are More States and Territories Adopting IAR CE?
The increasing adoption of IAR CE requirements reflects a broader effort to enhance investor protection and ensure industry professionals are equipped to handle complex financial challenges. Key drivers include:
- Harmonization Across States: By adopting NASAA’s model rule, states aim to create a consistent framework that simplifies compliance for IARs operating in multiple jurisdictions.
- Protecting Investors: Regular CE helps ensure IARs provide clients with accurate advice based on the latest regulations and market trends.
- Professional Accountability: CE requirements reinforce ethical practices and professional responsibility among IARs.
How to Stay Compliant in 2025
With more states requiring IAR CE, it’s essential to take a proactive approach to compliance. Here’s how you can prepare:
- Verify State Requirements: Check the specific IAR CE rules in each state where you’re registered. Note any state-specific content or additional hours beyond the NASAA standard.
- Choose an Approved Provider: Ensure your CE credits come from a provider approved by NASAA. Many online platforms offer flexible options to complete your hours.
- Plan Ahead: Avoid last-minute stress by spreading your CE hours throughout the year. This ensures you have time to address any technical or scheduling issues.
- Track Your Progress: Keep a record of completed CE hours and ensure they’re properly reported to the required state authorities.
The Growing Importance of IAR CE
As states continue to adopt IAR CE requirements, staying compliant isn’t just about meeting regulations – it’s about elevating your professional standards and demonstrating your commitment to serving clients with excellence. By proactively completing CE, you not only maintain your registration but also gain a competitive edge in a rapidly changing industry.
Meeting IAR Continuing Education Requirements
The addition of Nebraska, New Jersey, Minnesota, Rhode Island, and the U.S. Virgin Islands to the list of states and territories requiring IAR CE in 2025 underscores the growing emphasis on ongoing education for investment adviser representatives. By understanding these changes and preparing in advance, you can ensure compliance, uphold your professional standards, and continue providing exceptional service to your clients.
Stay tuned for updates as more states announce their plans, and make sure you’re ready to meet the new requirements. For a seamless CE experience, explore our NASAA-approved IAR CE courses designed to help you stay ahead in 2025 and beyond.
Start your CE journey today and secure your compliance for 2025!
