As more states adopt the IAR CE rule, firms and advisers alike need to understand not just the annual requirement but also how the credits are structured. Under NASAA’s model rule, Investment Adviser Representatives (IARs) must complete 12 CE credits each year by December 31, split evenly between two required categories:
- 6 credits in Products and Practices
- 6 credits in Ethics and Professional Responsibility
This article breaks down what each category entails, why the credit split matters, and how dual-credit courses may apply. Whether you’re an adviser, compliance officer, or firm leader, understanding these distinctions is key to maintaining registration and avoiding year-end surprises.
📌 Important Note: The 6/6 split is mandatory. IARs cannot substitute additional credits in one category for missing credits in the other, even if they’ve met the 12-credit total.
Additionally, credits must be earned through NASAA-approved providers, and courses may not be repeated in subsequent years. Working with a provider that offers fresh, clearly categorized content each year is essential to staying compliant. To view Quest CE’s 2025 IAR CE Catalog, click here.
What Qualifies as Ethics and Professional Responsibility?
The Ethics and Professional Responsibility category is designed to reinforce the fiduciary obligations IARs have to act in the best interests of their clients. Courses in this category focus on maintaining ethical standards, managing conflicts of interest, and understanding professional conduct expectations under state and federal regulations.
Common topic areas include:
- Fiduciary duty and client-first principles
- Identifying and mitigating conflicts of interest
- Ethical business and communication practices
- Avoiding disciplinary action and regulatory violations
Example course titles may include:
- Ethical Challenges in AI and FinTech
- Ethical Considerations for Client Communications
📌 Compliance Tip: Ethics credits are non-negotiable. Regulators often prioritize this category during reviews to ensure IARs are upholding the professional standards that protect investor confidence.
What Qualifies as Products and Practice Credit?
The Products and Practice category focuses on the technical knowledge and practical skills advisers need to serve clients effectively. These courses are designed to keep IARs informed on evolving investment products, industry regulations, and client service best practices—all through a fiduciary lens.
Common topic areas include:
- Investment strategies and portfolio construction
- Economic and market trend analysis
- Suitability standards and product knowledge
- Client communication and disclosure practices
Example course titles may include:
- Understanding Alternative Investments
- Regulation Best Interest: Practical Applications
💡 Did You Know? If an IAR is also registered with a broker-dealer and completes FINRA’s Regulatory Element CE, that training may be applied toward the Products and Practice requirement—helping advisers satisfy both obligations more efficiently. To learn how to apply the credit, click here.
📌 Compliance Tip: While these courses support the “practice” side of advising, they must still reflect a fiduciary approach. Sales-oriented content does not qualify under NASAA’s guidelines.
Common Misconceptions and Pitfalls
When it comes to IAR CE, several nuances can easily trip up even experienced compliance teams. Understanding these finer points is essential to maintaining firmwide compliance.
- Course content may not be repeated year-over-year.
IARs cannot retake the same courses in consecutive years, even if the topics are still relevant. To remain compliant, advisers must complete fresh, non-duplicative content each calendar year, making it important to partner with vendors who regularly update their catalogs. - CE is required based on registration, not residence.
If an IAR is registered in a CE-participating state, they must complete the requirement, regardless of where they live or where their home office is located. Overlooking registrations in newly adopted states is a common compliance gap. - Not all continuing education counts.
Only courses offered by NASAA-approved vendors meet the IAR CE standard. - Credits cannot be double-counted across categories.
Each course is designated for one specific credit type—either Ethics or Products & Practice. There is no overlap, and exceeding credits in one category does not offset a shortfall in the other.
📌 Compliance Tip: Missing just one of these details, like assigning a repeat course or misclassifying state registration, can leave your firm out of compliance, even if advisers think they’ve “checked the box.”
Best Practices for Compliance Professionals
To effectively manage IAR CE obligations across your firm, consider these core strategies:
- Centralize your tracking.
Use a system that allows you to monitor CE progress by credit type, adviser, and state registration, ensuring nothing falls through the cracks. - Audit your firm’s registration map.
Stay current on where your IARs are registered, especially as new states adopt the rule. Remember, CE is based on registration, not physical location. See which states have adopted here. - Communicate early and often.
Set internal deadlines well ahead of the December 31 cut-off and send regular reminders to advisers throughout the year. - Choose a vendor with fresh, categorized content.
Avoid duplication issues by working with a provider that releases new, NASAA-approved courses annually and clearly labels Ethics vs. Practice credits.
As the IAR CE rule continues to expand across jurisdictions, staying organized and proactive is key. With the right tools and processes in place, compliance professionals can confidently meet regulatory expectations without scrambling at year-end.
How Quest CE Supports IAR CE Compliance
Quest CE offers a comprehensive, NASAA-approved IAR CE platform designed to make compliance easy. Our course catalog is updated annually with new Ethics and Products & Practice content, ensuring your team stays compliant without repeating material. Built-in tracking tools, real-time completion reports, and dual-credit indicators (for dually registered reps) give compliance teams full visibility and control.
Want to learn more? Contact us to see how we can simplify IAR CE for your firm.
