Newly adopted Investment Adviser Representative continuing education requirement

(COLUMBIA, S.C.) - The Securities Division of the South Carolina Office of the Attorney General today announced the issuance of Order 22004, which requires that both state-registered and federal-covered investment adviser representatives (IARs) complete annual continuing education requirements. 

IARs play an important role in the financial well-being of thousands of South Carolina investors by providing ongoing advice about their investment portfolio and retirement planning. Unlike other financial services professionals, IARs have not previously been subject to continuing education (CE) requirements to ensure that their knowledge and competence are maintained or expanded. Order 22004 has been adopted to address this professional development gap and further the protection of South Carolina investors.

“Continuing Education promotes heightened compliance while also helping investment adviser representatives better serve their clients by remaining knowledgeable about current industry standards and best practices,” said Attorney General Alan Wilson, who, by law, also serves as the state’s Securities Commissioner.

The order requires all IARs to complete at least six credits of products and practices courses and six credits of ethics and professional responsibility courses annually in order to maintain their registration.

The order closely follows the model rule adopted by the North American Securities Administrators Association (NASAA) in 2020, which will simplify CE compliance for IARs registered across multiple states.  For IARs currently registered in South Carolina, compliance will begin on January 1, 2023.  The order also takes into consideration other CE programs mandated for IARs who are dually registered as agents of broker-dealers as well as those IARs whose professional designations are contingent on the completion of CE.  It is intended to be compatible with other continuing education programs that seek to ensure its members stay current with industry matters relevant to the services and products offered to their clients.

To view the order, visit the Securities Division website at www.scag.gov/scsecurities.  For more information, visit the industry resources section of the NASAA website (www.nasaa.org) where you can find answers to frequently asked questions as well as a list of other states that have adopted CE requirements.