Todd Rosenfeld, Chief Learning Officer at STC, discusses the key requirements for IAR Continuing Education.
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Welcome to another edition of Todd Talks! In this video, we dive into the Model Rule on Investment Adviser Representative Continuing Education (IAR CE) established by the North American Securities Administrators Association (NASAA), which has raised several inquiries.
Here is an outline of the key points to help you understand the current landscape of IAR CE requirements.
Specific Requirements for IARs
Investment Adviser Representatives (IARs) must complete 12 CE credits annually to maintain their registration. This includes:
- 6 credits in Products and Practices
- 6 credits in Ethics and Professional Responsibility
Requirements for Dually Registered IARs
IARs who are also registered representatives of a FINRA member firm can use their FINRA Regulatory Element CE to satisfy the Products and Practices requirement. These IARs must only complete the 6 credits of Ethics and Professional Responsibility content.
Importance of CE for IARs
Why CE Now?
The rapid growth of the investment advisory profession and the increasing amount of assets under management, projected to reach $147 trillion by 2027, necessitate ongoing education for IARs to protect clients and maintain industry standards.
State Adoption
State approval is necessary for the CE requirements to take effect. Initially adopted by three states in 2022, the mandate has expanded to 18 states, including major states like Florida, California, Michigan, and Wisconsin, as of 2024.
IARs should regularly check NASAA’s website or contact local securities regulators for updates.
Compliance and Consequences
If you pass the Series 65 or Series 66 exams in 2024, you may be exempt from CE requirements for that year but must comply the following year. Failure to complete the required CE can result in CE inactivity, necessitating double the credits to regain compliance.
Available IAR CE Courses
As an approved provider, STC offers 44 courses in the Products and Practices and Ethics and Professional Responsibility categories.
To make completing CE easy, STC offers both 6-hour and 12-hour bundles. In addition to the selected number of online courses, each bundle includes the mandatory CE assessment, a Certificate of Completion, 24/7 tech support, and automatic completion reporting to FINRA.
STC expects to add courses throughout the year and will update its offering list here.
