Okla. Admin. Code § 660:11-7-49

Current through Vol. 42, No. 1, September 16, 2024

Section 660:11-7-49 - Investment adviser representative continuing education requirements

(a)Definitions. For purposes of this Section, the following terms mean:

(1)"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 under this Section.

(2)"Authorized provider" means a person that NASAA or its designee has authorized to provide continuing education content required by this Section.

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

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

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

(6)"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.

(7)"Investment adviser representative" means an individual who meets the definition of "investment adviser representative" under the Securities Act and an individual who meets the definition of "investment adviser representative" under 17 CFR 275.203A-3.

(8)"Reporting period" means the calendar year. An investment adviser representative's initial reporting period commences the first day of the first full reporting period after the individual is registered or required to be registered under the Securities Act.

(b)IAR continuing education. Every investment adviser representative registered under the Securities Act must complete a total of twelve (12) credits of continuing education requirements each reporting period as follows:

(1)IAR Ethics and Professional Responsibility requirement. An investment adviser representative must complete six (6) credits of IAR Ethics and Professional Responsibility Content offered by an authorized provider, with at least three (3) credits covering the topic of ethics; and

(2)IAR Products and Practice requirement. An investment adviser representative must complete six (6) credits of IAR Products and Practice Content offered by an authorized provider.

(c)Agent of FINRA-registered broker-dealer compliance. 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 considered to be in compliance with subsection (b)(2) for each applicable reporting period so long as FINRA continuing education content meets all of the following baseline criteria:

(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.

(3) The continuing education content requires that its participants demonstrate proficiency in the subject matter of the educational materials.

(d)Credentialing organization continuing education compliance. Credits of continuing education completed by an investment adviser representative who holds certifications determined by the Administrator to be acceptable in lieu of required examinations comply with subsection (b) of this Section provided all of the following are true:

(1) The investment adviser representative completes the credits of continuing education as a condition of maintaining the credential 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.

(3) The continuing education content provided by the credentialing organization during the relevant reporting period is Approved IAR Continuing Education Content.

(e)IAR continuing education reporting. 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)No carry-forward. An investment adviser representative who completes credits of continuing education in excess of the amount required for the reporting period may not carry forward excess credits to a subsequent reporting period.

(g)Failure to complete or report. An investment adviser representative who fails to comply with this Section by the end of a reporting period will renew under the Securities Act as "CE Inactive" at the close of the calendar year until the investment adviser representative completes and reports all required IAR continuing education credits for all reporting periods as required by this Section. An investment adviser representative 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.

(h)Discretionary waiver by the Administrator. The Administrator may, in the Administrator's discretion, waive any requirements of this Section.

(i)Home state. 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 rule provided that both of the following are true:

(1) The investment adviser representative's home state has continuing education requirements that are at least as stringent as the requirements of this Section.

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

(j)Unregistered periods. An investment adviser representative who was previously registered under the Securities Act and became unregistered for non-compliance with this Section must complete the continuing education requirements required by this Section for all reporting periods that occurred between the time that the investment adviser representative became unregistered and when the person applies to become registered again under the Securities Act unless the investment adviser representative takes and passes the required examinations or receives an examination waiver under 660:11-7-13 in connection with the subsequent application for registration.

Okla. Admin. Code § 660:11-7-49

Adopted by Oklahoma Register, Volume 39, Issue 24, September 1, 2022, eff. 9/15/2022