The landscape of continuing education requirements for investment advisor representatives is witnessing a significant shift in 2023. For the first time, noncompliance with these requirements could lead to the loss of licensure for IARs. Here’s some essential guidance, as well as reminders to help advisors navigate these changes and stay compliant.
As we step into this pivotal year, it's crucial for investment advisars to recognize the consequences of failing to meet their annual continuing education obligations. If an IAR fails to fulfill their CE requirements for two consecutive years, they risk losing their license in the initial week of the new year in all IAR CE states. This rule also applies to states that have set a 2024 effective date for adoption.
Consider an IAR licensed in Maryland and Florida in 2022 who subsequently drops their Maryland license but fails to complete their 2022 CE. Under the new regulations, such an IAR will lose their Florida license in the first week of 2024 unless they complete and submit their pending CE by Dec. 31, 2023.
Failure to meet the IAR CE requirement for one year results in the registration status being updated to “Approved – Pending IAR CE” in all IAR CE states. The advisor must then complete the deficient 12 credits plus the current year's requirement. If this noncompliance extends over two years, the registration will not renew in all IAR CE states, necessitating a catch-up on deficient CE before reapplying for state registration.
Advisors in states such as Mississippi, Vermont and Maryland should be particularly vigilant. These states adopted the CE requirements in 2022, meaning two consecutive years of CE compliance is mandatory by December 2023.
Withdrawing from a state that requires IAR CE doesn't absolve IARs of their CE obligations for that year. The CE requirements persist and can impact future registrations in states with IAR CE mandates.
Understanding the different IAR Registration Statuses is vital for compliance:
As we navigate the evolving landscape of IAR CE compliance, advisors must stay informed and proactive. Understanding and adhering to these requirements is not just about fulfilling a regulatory mandate; it's about maintaining the integrity and trustworthiness of the advisory profession. Advisors are encouraged to regularly check resources like NASAA's the website of the North American Securities Administrators Association Inc. for the latest information and to ensure they remain compliant and capable of serving their clients effectively.
Alex Krenke is chief commercial officer at Quest CE, which helps financial service organizations manage their compliance operations.
Yari Capital's move to Carson continues a run of additions for the $62 billion firm, days after it hired a veteran recruiter from Osaic.
Servo Wealth Management's $210 million book brings the Minneapolis consolidator's total client assets further past $160 billion.
The deal to acquire a 300-client tax firm sets up much-needed succession for its 80-year-old founder, while joining a widening trend of tax service integration among RIAs.
New Nationwide Retirement Institute survey reveals eight in ten Americans agree Social Security needs fixing and how.
Advisor-led adoption has been rapid for tasks from translating annuity contracts into plain English to speedy webinar prep.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
