Three states implement continuing education rules for IARs

Maryland, Mississippi and Vermont are the first states to put the NASAA model rule into effect.

Maryland, Mississippi and Vermont have become the first states to implement continuing education requirements for investment adviser representatives in their states. The requirements are based on a model adopted by the North American Securities Administrators Association in November 2020; the three states adopted the model rule last year.

The model requires an investment adviser representatives to complete six credits of IAR regulatory and ethics content offered by an authorized provider, with at least three hours covering the topics of ethics. In addition, an IAR must complete six credits of IAR products and practice content offered by an authorized provider. The credits must be earned within a 12-month period every year.

“Drafting and finalizing an investment adviser representative continuing education program has been a priority for NASAA for many years as a way to help ensure financial professionals are remaining up-to-date on relevant industry information,” Melanie Senter Lubin, NASAA president and Maryland Securities Commissioner, said in a statement. “I’m pleased that states are moving to implement this continuing education requirement and look forward to more states doing so in the coming months.”

Until the adoption of the model by Maryland, Mississippi and Vermont, there hadn’t been a stand-alone continuing education requirement for investment adviser representatives.