N.J. Admin. Code § 13:47A-4.4

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:47A-4.4 - Investment adviser representative continuing education

(a) For purposes of this section, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise:

"Approved IAR continuing education content" means the materials, written, oral, or otherwise, that have been approved by NASAA, or its designee, and which make up the educational program provided to an investment adviser representative pursuant to this section.

"Authorized provider" means a person that NASAA, or its designee, has authorized to provide continuing education content required by this section.

"Credit" means a unit that has been designated by NASAA, or its designee, as at least 50 minutes of educational instruction.

"Home state" means the state in which the investment adviser representative has its principal office and place of business.

"IAR ethics and professional responsibility content" means approved investment adviser representative continuing education content that addresses an investment adviser representative's ethical and regulatory obligations.

"IAR products and practice content" means approved investment adviser representative continuing education content that addresses an investment adviser representative's continuing skills and knowledge regarding financial products, investment features, and practices in the investment advisory industry.

"NASAA" means the North American Securities Administrators Association or a committee designated by its Board of Directors.

"Reporting period" means one 12-month period as determined by NASAA. An investment adviser representative's initial Reporting Period with this State commences the first day of the first full Reporting Period after the individual is registered or required to be registered with this State.

(b) Every registered investment adviser representative shall complete the following continuing education requirements each reporting period as a condition of registration renewal:

1. Six credits of investment adviser representative ethics and professional responsibility content offered by an authorized provider, with at least three hours covering the topic of ethics; and

2. Six credits of investment adviser representative products and practice content offered by an authorized provider.

(c) An investment adviser representative who is also registered as an agent of a FINRA member broker-dealer and who complies with FINRA's continuing education requirements shall be deemed to satisfy the continuing education requirements at (b)2 above for each applicable reporting period, provided the FINRA continuing education content:

1. Focuses on compliance, regulatory, ethical, and sales practices standards;

2. Derives from state and Federal investment advisory statutes, rules, and regulations, securities industry rules and regulations, and accepted standards and practices in the financial services industry; and

3. Requires that its participants demonstrate proficiency in the subject matter of the educational materials.

(d) Credits of continuing education completed by an investment adviser representative who currently holds one of the certifications described at N.J.A.C. 13:47A-4.3(a) shall be deemed to satisfy the continuing education requirements at (b) above provided:

1. The investment adviser representative completes the credits of continuing education as a condition of maintaining the certification for the relevant reporting period;

2. The credits of continuing education completed during the relevant reporting period by the investment adviser representative are mandatory to maintain the certification; and

3. The continuing education content provided by the certifying organization during the relevant reporting period is approved IAR continuing education content.

(e) Every investment adviser representative is responsible for ensuring that the authorized provider reports the investment adviser representative's completion of the applicable IAR continuing education requirements.

(f) An investment adviser representative who completes credits of continuing education in excess of the amount required for the reporting period shall not carry forward excess credits to a subsequent reporting period.

(g) An investment adviser representative who fails to comply with this section by the end of a reporting period will renew as "Approved--Pending IAR CE" at the close of the calendar year in this State until the investment adviser representative completes and reports all required investment adviser representative continuing education credits for all reporting periods as required by this section. An investment adviser who is Approved-Pending IAR CE at the close of the next calendar year shall not be eligible for investment adviser representative registration or renewal of an investment adviser representative registration.

(h) An investment adviser representative registered or required to be registered in this State who is registered as an investment adviser representative in the individual's home state is considered to be in compliance with this section provided:

1. The investment adviser representative's home state's continuing education requirements are, at a minimum, the same as those in this section; and

2. The investment adviser representative is in compliance with the home state's investment adviser representative continuing education requirements.

(i) An investment adviser representative who was previously registered pursuant to the Act and became unregistered must complete investment adviser representative continuing education for all reporting periods that occurred between the time that the investment adviser representative became unregistered and when the person became registered again pursuant to the Act unless the investment adviser representative takes and passes the examination or receives an examination waiver as required at N.J.A.C. 13:47A-4.3(b) in connection with the subsequent application for registration.

N.J. Admin. Code § 13:47A-4.4

Amended and recodified from 13:47A-4.3 by 47 N.J.R. 2155(a), effective 8/17/2015

Adopted by 56 N.J.R. 1876(a), effective 9/16/2024