CAL DFPI proposed Continuing education (CE) requirements for investment advisors.
Investment advisors and all-natural persons associated with such advisor are required to meet training and experience requirements pursuant to CAL FIN 4-1-3-25236.
CE Requirements
Required Investment advisor representatives (IARs) to complete CE requirements each reporting period, including 6 credits of ethics and professional responsibility content.
Also, 6 credits of IAR products and practice content offered by an authorized provider.
IAR who is also registered as an agent of a FINRA member B/D and complies with FINRA's CE requirements is considered to be in compliance with CAL CE requirements.
As long as FINRA CE content meets set baseline criteria as determined by NASAA.
CE reporting requirements defined; credits may not carry forward to next reporting.
An IAR registered in State who is registered as an IAR in home State is considered to be in compliance if home State CE requirements as stringent as NASAA model rule.
Further, the IAR must be in compliance with the home IAR State's CE requirements.
Unregistered IARs must complete CE for all reporting periods that occurred between the time that the IRA became unregistered and when the IRA was registered again.
Any IAR employed by an investment adviser only to offer for the sale of investment advisory services of an investment adviser is not subject to provided CE requirements.
Consultation
Comments on CE requirements for investment advisors are due by Jan. 16, 2023.
Feb. 2024 CAL DFPI Modified Continuing Education Proposal
On Feb. 16, 2024, CAL DFPI modified the Dec. 2022 proposal PRO 07/21 on IA CE.
CAL DFPI filed proposal with Office of Administrative Law (OAL) on Oct. 24, 2023.
On Dec. 8, 2023, OAL disapproved for failure to comply with clarity standard of the Administrative procedure act; Commissioner now proposing changes to regulations.
Rulemaking record was updated to include following documents relied upon: NASAA 2021 IA section report;NASAA member survey results; and NASAA IAR CE FAQs.
Incorporated by reference pages 7-11 and 20-27 of the NASAA IAR CE Program Handbook, January 2023 Edition; Provided redline version of modified regulation.
Comments on the modified CE proposal must be submitted by Mar. 1, 2024.
Apr. 2024 CAL DFPI Final Rulemaking Submission
On Apr. 4, 2024, CAL DFPI resubmitted IAR CE final rulemaking to the Office of Administrative Law for approval on Mar. 28, 2024, to be effective May or Jun. 2024.
Credits earned at any time in 2024 will be accepted, count toward 2024 compliance.
On May 6, 2024, CAL DFPI reported that rulemaking file was approved by Office of Administrative Law, and filed with Secretary of State, immediate effect on May 1st.
Further, published final text of the regulation, and the final statement of reasons.
Oct. 2024 CAL DFPI CE Deadline
On Oct. 21, 2024, CAL DFPI reported that each IA with a full year of registration must complete 12 CE credits, completed and reported by course providers by Dec. 26, 2024.