The North American Securities Administrators Association (“NASAA”), an organization made up of state and provincial securities regulators in the U.S., Canada, and Mexico, with a mission that includes protecting investors, announced a model rule for NASAA members to implement continuing education requirements for investment adviser representatives (“IARs”). Unlike other financial industry professionals, such as lawyers and registered representatives, there is no continuing education requirement for IARs to maintain a license through a state securities regulator and advise investor and retiree clients.
Every 12 months, the model rule requires IARs to complete 6 credits of regulatory and ethics content and another 6 credits of products and practice content. For comparison, lawyers in Oregon must complete 45 continuing legal education credits every three years, and registered representatives regulated by FINRA must complete regular continuing education that involves compliance, regulatory, ethical and sales practice standards, along with training through their broker-dealer.
