Expanding Horizons: New States Embrace NASAA's IAR CE Model Rule for 2025 and 2026

Expanding Horizons: New States Embrace NASAA's IAR CE Model Rule for 2025 and 2026

The landscape of investment adviser regulation is evolving, with a growing number of states adopting the North American Securities Administrators Association (NASAA)'s Investment Adviser Representative Continuing Education (IAR CE) Model Rule. This initiative aims to ensure that investment adviser representatives (IARs) maintain a high level of professionalism and stay abreast of industry developments.

New Adoptions in 2025:

In 2025, five jurisdictions have implemented the IAR CE requirements:

• Minnesota

• Nebraska

• New Jersey

• Rhode Island

• U.S. Virgin Islands

These additions bring the total number of jurisdictions enforcing the IAR CE requirements to over 20, reflecting a significant shift towards standardized continuing education for IARs.

Looking Ahead to 2026:

Illinois has announced its adoption of the IAR CE Model Rule, with requirements set to take effect on January 1, 2026. This move underscores the state's commitment to enhancing investor protection and ensuring that IARs operating within its jurisdiction are well-informed and competent.

Understanding the IAR CE Requirements:

Under the NASAA Model Rule, IARs are mandated to complete 12 hours of continuing education annually, divided into:

• 6 hours focused on Products and Practices

• 6 hours dedicated to Ethics and Professional Responsibility

These requirements are designed to keep IARs updated on industry best practices, regulatory changes, and ethical standards.

Implications for IARs:

IARs registered in states that have adopted the IAR CE requirements must ensure compliance to maintain their

registration status. Failure to meet these requirements can result in a 'CE Inactive' status, potentially impacting an IAR's ability to operate legally within those jurisdictions.

Conclusion:

The adoption of NASAA's IAR CE Model Rule by additional states signifies a collective effort to elevate the standards of the investment advisory profession. As more jurisdictions embrace these requirements, IARs must stay informed and proactive in fulfilling their continuing education obligations to ensure compliance and uphold the trust of their clients.

For a comprehensive overview of the states that have adopted the IAR CE requirements and additional resources, visit NASAA's official IAR CE page: https://www.nasaa.org/industry-resources/investment-advisers/investment-adviser-representative-continuing-education/iar-ce-map/

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