22 March 2018

NASAA Issues Survey for Investment Adviser Representatives Regarding Mandatory Continuing Education

By Jim Allen, CFA and Inigo Bengoechea, CFA, CPA, CAIA, FRM

Posted In: Fiduciary Duty

The North American Securities Administrators Association (NASAA) has published a survey for investment adviser representatives (IARs) to collect opinions on the implementation of a continuing education program. Currently, IARs are not required to complete continuing education to maintain their licenses. NASAA is considering steps to change this.

State securities regulators see the lack of continuing education as a gap in investor protections. Regulators are concerned that IARs who do not remain current with their understanding of the industry and new investment instruments could inadvertently recommend inappropriate options.

As a first step toward understanding the depth of the issue, NASAA has launched this survey to obtain feedback from industry participants. The information will help NASAA develop a responsive and relevant continuing education program.

CFA Institute believes in the need for investment professionals to maintain their skills and understanding through ongoing continuing education. Such education plays an important role in protecting investors and maintaining high proficiency standards. Although professionals may be able to demonstrate competence at a single point in time, CFA Institute believes it is necessary for these professionals to update their knowledge on a frequent basis or otherwise run the risk of seeing their skills become outdated.

NASAA and its member regulatory agencies are in the early phases of this initiative and will use this nationwide survey to help them determine their next steps. The project could lead to a Model Rule for states to adopt regarding continuing education for IARs.

IARs registered with state regulators or the US SEC should participate in the survey to ensure their opinions are heard. The feedback gathered will help NASAA determine whether it will adopt and implement a continuing education program; such a program the content to organizations such as CFA Institute. For those who may not know, NASAA recognizes the CFA c 65 exam.

Click here to take the survey. The survey is open through 31 March 2018.

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Photo Credit: ©Getty Images/Nathan L Roker

Tags: Financial Reporting

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About the Author(s)

Jim Allen, CFA

Jim Allen, CFA, is head of Americas capital markets policy at CFA Institute. The capital markets group develops and promotes capital markets positions, policies, and standards.

Inigo Bengoechea, CFA, CPA, CAIA, FRM

Inigo Bengoechea has been Director of Regulator and Program Recognition at CFA Institute since March 2013. He earned a master's degree in international relations from Columbia University and a bachelor’s degree in industrial engineering from Universidad Pontificia Comillas in Madrid. He holds the CFA, CPA, FRM, and CAIA designations and is a member of the CFA Society of New York, the Global Association of Risk Professionals (GARP) and the Chartered Alternative Investments Association.