With the end of the year just around the corner, don’t let your annual training requirements slip by! To help keep your deadlines in order, we’ve created a checklist with everything you need to know to stay in compliance before ringing in the New Year.
Firm Element CE
Comply by Date: Annual Requirement, December 31, 2022
Rule Requirement: FINRA requires firms to establish an annual Firm Element program that enhances the securities knowledge, skills, and professionalism of their covered registered persons. A firm should refer to the applicable rules and regulations for specific requirements. Generally, the Firm Element rules require firms to evaluate and prioritize annually their training needs, i.e., conduct a needs analysis, and develop a written training plan. In planning, developing, and implementing the Firm Element training, each firm should take into consideration its size, structure, scope of business, regulatory concerns, and various other factors.
Has your firm completed the following responsibilities?
- performing a needs analysis;
- developing and implementing a written training plan;
- establishing a time frame and schedule to deliver training;
- documenting course titles, content, and participation;
- retaining training-related documents for books and records;
- managing the annual process of updating the needs analysis and implementing the written training plan;
- reviewing training objectives and modifying as needed (e.g., quarterly or twice a year review or ad hoc modifications due to unforeseen regulatory concerns); and
- establishing and maintaining the firm’s policies and procedures to meet CE requirements
Does your program cover the following topics?
- ethics and professional responsibility; and
- securities products, services, and strategies offered by the firm, including
- general investment features and associated risk factors;
- suitability and sales practice considerations; and
- applicable regulatory requirements.
For additional information on Firm Element training expectations, click here.
Comply by Date: December 31, 2022
Rule Requirement: Every IAR in an adopted jurisdiction will need to attain 12 CE credits each year to maintain their IAR registration. A “credit” is a unit that has been designated by NASAA to be at least 50 minutes of educational instruction. Content cannot be repeated.
What States Have Adopted?
Currently, the following states have adopted regulation for 2022:
- Maryland and
States that are finalizing requirements for 2023 are: Arkansas, Kentucky, Michigan, Nevada, Oklahoma, Rhode Island, South Carolina, Washington, D.C., and Wisconsin. States that are currently proposing the adoption of the model rules are: California, Colorado, Hawaii, and Tennessee.
What Credits are Required?
- Products and Practices (6 Credits)
Designed to ensure ongoing knowledge related to investment products, strategies, standards, and compliance practices relevant to the investment advisory industry. Regulatory Element credits can be applied to this category.
- Ethical Responsibilities (6 Credits)
Designed to ensure ongoing knowledge related to an IAR’s duties and obligations to his or her clients including issues related to the fiduciary duty owed to each client.
How Does Reciprocity Work?
An IAR registered in another state who is also registered as an IAR in his or her home state is in compliance if the home state has CE requirements that are at least as stringent as the model rule and the IAR is in compliance with the home state’s IAR CE requirements.