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The North American Securities Administrators Association said Monday that its membership has voted to adopt a model rule setting parameters on how to implement a continuing education program for investment adviser representatives (IARs) in their jurisdictions.
Unlike other financial service professions, IARs are not subject to a continuing education requirement to maintain their licenses with state regulators.
The model rule will help NASAA members "close this gap" by requiring IARs to take 12 hours of continuing education a year, NASAA said. State securities regulators can consider adopting the rule in their own jurisdictions.
"This model rule represents the culmination of years of work by state securities regulators and industry to develop a relevant and responsive continuing education program," said Lisa Hopkins, NASAA president and West Virginia Senior Deputy Securities Commissioner, in a statement.
"This successful collaboration will help promote heightened regulatory compliance while also helping investment adviser representatives better serve their clients by remaining knowledgeable of current regulatory requirements and best practices," Hopkins explained.
NASAA, a voluntary body made up of state securities regulators, conducted a survey in February regarding course content. (Its members include 67 state, provincial, and territorial securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada and Mexico.)
