On April 18, 2022, Kentucky announced that it had adopted Senate Bill (“SB”) 298, making it the newest state to adopt an investment adviser representative continuing education (“IAR CE”) requirement, joining Mississippi, Vermont, Maryland, Michigan, and Wisconsin. Along with Michigan and Wisconsin, Kentucky’s new rule will become effective January 1, 2023. For investment adviser representatives in Mississippi, Vermont, and Maryland, an IAR CE requirement is already in effect.
Each state adopting an IAR CE requirement has closely tracked NASAA’s Model IAR CE Rule and requires state- and SEC-registered investment adviser representatives registered in an applicable state to obtain twelve credit hours of IAR CE each year. Of those twelve credit hours, six must be completed in “Products and Practices” and six in “Ethics and Professional Responsibilities.”
In addition to the new IAR CE requirement, SB 298 also requires Kentucky state-registered investment advisers to implement written business continuity plans and cybersecurity plans. These written policies and procedures must be tailored to the firm and address certain areas of risk related to cybersecurity threats and business continuity events. Both plans must be reviewed annually, with written proof of the review maintained in the firm’s books and records for at least three years. Registered investment advisers in Kentucky should take steps now to start developing and implementing written business continuity and cybersecurity plans that meet the new regulatory requirements.
More states are expected to adopt an IAR CE requirement this year, including Arkansas, Nevada, and Washington, D.C. The earliest compliance date for any state that adopts a requirement in 2022 will be January 1, 2023. As state securities regulators continue to adopt the IAR CE Model Rule, NASAA will update its list of member states that are adopting the Model Rule.
For more information on the IAR CE requirements and adoption by state securities regulators, visit our IAR Continuing Education – Frequently Asked Questions. RIA Compliance Consultants, Inc. is excited to be an approved IAR CE provider and will be announcing our course catalog (subject to approval by Prometric) in the coming weeks.
NASAA does not endorse any particular provider of CE courses. The content of any course offered by RIA Compliance Consultants, Inc. and any views expressed therein are our own and do not necessarily reflect the views of NASAA or any of its member jurisdictions.
If your state registered or SEC registered investment adviser firm is an existing client of RIA Compliance Consultants and has questions about IAR continuing education, we encourage you to speak with your compliance consultant. Or, if you are not an existing client of RIA Compliance Consultants, click here to set up an introductory call with our Business Development Team.
Related Posts & Resources
Wisconsin Adopts IAR Continuing Education Rule – March 10, 2022
Michigan Proposes IAR Continuing Education Rule for 2023 – February 22, 2022
Maryland Adopts IAR Continuing Education Rule – December 27, 2021
Vermont Adopts IAR Continuing Education Rule – December 10, 2021
Maryland Division of Securities Proposes New IAR CE Requirement – November 03, 2021
RIA Compliance Consultants Approved as IAR CE Provider – October 26, 2021
Mississippi Adopts IAR Continuing Education Rule – July 29, 2021
IAR CE – Tracking Spreadsheets – March 22, 2021
The information contained in this blog post is general in nature intended for educational purposes only and is not intended to be a comprehensive analysis of this topic. It is not intended to constitute compliance consulting advice or apply to any particular investment adviser firm’s specific situation. Please consult the applicable securities regulator’s rules and published guidance for more details about the topics referenced above. For more information about the limitations of this blog post and information on our website, please see our Disclosures webpage.