On November 24, 2020, North American Securities Administration Association ("NASAA") members elected to adopt an investment adviser continuing education requirement with the goal of ensuring that advisors receive proper and updated training on the securities business relevant to their duties and obligations. The rule was originally proposed in February 2020 and was open to the public for comments until the middle of April. To seek further feedback, NASAA conducted a survey in September 2020 and requested comments regarding a proposed amendment in October 2020.
While many financial service professionals are subject to a continuing education requirement, investment advisers have not had such a requirement in the past. Meanwhile, investment advisers maintain an impactful role on the financial health of many individuals and households across the country. Concerned with this dynamic, NASAA sought data on the topic in 2017. Overwhelmingly, NASAA Members viewed an Investment Adviser Continuing Education ("IAR CE") as a necessity. With this in mind, NASAA designed a framework for such a requirement.