230 R.I. Code R. 230-RICR-50-05-2.7

Current through November 7, 2024

Section 230-RICR-50-05-2.7 - Investment Adviser Representative Continuing Education Requirements

A. Definitions. In addition to the terms defined in R.I. Gen. Laws § 7-11-101 and in this Part, the following terms shall have the following meaning for this Section:

1. "Act" means the Uniform Securities Act (1985) as applicable.

2. "Approved IAR Continuing Education Content" means the materials, written, oral, or otherwise that have been approved by the Department using NASAA criteria which make up the educational program provided to an investment adviser representative under this rule.

3. "Authorized Provider" means an entity the Department using NASAA criteria has authorized to provide continuing education content required by this rule.

4. "Credit" or "Credit Hour" means a unit that has been designated by NASAA or its designee as at least fifty (50) minutes of educational instruction.

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

6. "IAR Ethics and Professional Responsibility Content" means Approved IAR Continuing Education Content that addresses an investment adviser representative's ethical and regulatory obligations.

7. "IAR Products and Practice Content" means Approved IAR 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.

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

9. "Reporting Period" means one twelve-month (12) 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 investment adviser representative, as set forth in R.I. Gen. Laws § 7-11-203, must complete the following IAR continuing education requirements each Reporting Period:

1. An investment adviser representative must complete six (6) credits of ethics and professional responsibility content offered by an Authorized Provider, with at least three (3) credits specifically covering the topic of ethics; and

2. An investment adviser representative must complete six (6) credits of product 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 is in compliance with the IAR Products and Practice Requirement in § 2.7(B)(2) of this Part for each applicable Reporting Period if the FINRA continuing education content meets the following baseline criteria as determined by NASAA:

1. The continuing education content focuses on compliance, regulatory, ethical, and sales practices standards;

2. The continuing education content is derived 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. The continuing education content 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 was awarded and currently holds a credential that qualifies for an examination waiver under 230-RICR-50-05-1.13(A)(3) may comply with § 2.7(B)(1) and (2) of this Part provided all of the following are true:

1. The investment adviser representative completes the credits of continuing education as a condition of maintaining the license 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 credential; and

3. The continuing education content provided by the credentialing 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 to FINRA for continuing education tracking.

F. Continuing education credits in excess of the amount required for the Reporting Period may not be carried forward to a subsequent Reporting Period.

G. An investment adviser representative who fails to comply with this § 2.7 of this Part by the end of a Reporting Period will renew as "CE Inactive" at the close of the calendar year in this state until the investment adviser representative completes and reports all required IAR continuing education Credits for all required Reporting Periods. An investment adviser who is CE inactive at the close of the next calendar year is not eligible for investment adviser representative registration or renewal of an investment adviser representative registration until such time as all required credits for the required reporting periods have been completed.

H. The director may, in their discretion, waive any requirements of this rule.

I. 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 in compliance with § 2.7 of this Part provided that:

1. The investment adviser representative's Home State has continuing education requirements that are at least as stringent as those set forth in § 2.7 of this Part; and

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

J. An investment adviser representative who was previously registered under the Act and became unregistered must complete IAR 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 under the Act unless the investment adviser representative takes and passes the examination or receives an examination waiver as required by 230-RICR-50-05-1.13(A)(3) in connection with the subsequent application for registration.

230 R.I. Code R. 230-RICR-50-05-2.7

Amended effective 11/4/2024