Continuing Education Proposed for Investment Advisers
The association of state securities regulators (NASAA) has adopted a model rule that would require investment adviser representatives to complete 12 hours of continuing education every year. The rule would apply to IARs registered in states that adopt the rule. The rule requires 6 credits of regulatory and ethics credit, with a minimum of 3 ethics credits, and 6 credits related to financial products, investments, and practices. The state would designate approved providers and content. A delinquent IAR could not practice until s/he completed the continuing education requirement.
While we will always support more education and training, we wonder what problem NASAA is trying to solve? Back in 2016, an oft-cited academic highlighted widespread misconduct by FINRA-member broker-dealers. In fact, this study served as a predicate for a higher broker standard of care, culminating in Regulation Best Interest. NASAA did not allege any such widespread wrongdoing by registered investment advisers who are already subject to a fiduciary standard.