California Proposes Adopting IAR Continuing Education Model Rules

The California Department of Financial Protection and Innovation (DFPI) has proposed to adopt rules that would require investment adviser representatives (IARs) to complete 12 credit hours of continuing education courses each year (CE). If adopted, California would join a growing number of states that have implemented the model rules adopted by the North American Securities Administrators Association (NASAA) a little over two years ago.¹ The model rules are designed to work in tandem with updates to FINRA rules that, beginning in January 2023, will require broker-dealer representatives to complete regulatory CE annually rather than in three-year cycles.

Consistent with NASAA's model rules, the proposed California CE rules would require six credit hours of Ethics and Professional Responsibility courses and six credit hours of Products and Practice courses each year.