Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-04 - Division of Securities
Chapter 0780-04-03 - Industry Regulation
Section 0780-04-03-.17 - INVESTMENT ADVISER REPRESENTATIVE CONTINUING EDUCATION

Universal Citation: TN Comp Rules and Regs 0780-04-03-.17

Current through September 24, 2024

(1) Investment Adviser Representative Continuing Education. Every investment adviser representative registered under Tenn. Code Ann. § 48-1-109 must complete the following investment adviser representative continuing education requirements each reporting period:

(a) Investment Adviser Representative Ethics and Professional Responsibility Requirement. An investment adviser representative must complete six (6) credits of investment adviser representative regulatory and ethics content offered by an authorized provider, with at least three (3) hours covering the topic of ethics; and

(b) Investment Adviser Representative Products and Practice Requirement. An investment adviser representative must complete six (6) credits of investment adviser representative products and practice content offered by an authorized provider.

(2) 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 subparagraph (1)(b) of this rule for each applicable reporting period so long as FINRA continuing education content meets all of the following baseline criteria as determined by NASAA:

(a) The continuing education content focuses on compliance, regulatory, ethical, and sales practices standards;

(b) 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

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

(3) Credentialing Organization Continuing Education Compliance. 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 subparagraph (10)(a) of Rule 0780-04-03-.01 comply with subparagraph (1)(a) and (1)(b) of this rule provided all of the following are true:

(a) The investment adviser representative completes the credits of continuing education as a condition of maintaining the credential for the relevant reporting period;

(b) The credits of continuing education completed during the relevant reporting period by the investment adviser representative are mandatory to maintain the credential; and

(c) The continuing education content provided by the credentialing organization during the relevant reporting period is approved investment adviser representative continuing education content.

(4) Investment Adviser Representative Continuing Education Reporting. Every investment adviser representative is responsible for ensuring that the authorized provider reports to NASAA or its designee the investment adviser representative's completion of the applicable investment adviser representative continuing education requirements.

(5) 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.

(6) Failure to Complete or Report. An investment adviser representative who fails to comply with this rule 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 to NASAA or its designee all required investment adviser representative continuing education credits for all reporting periods as required by this rule. 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.

(7) Discretionary Waiver by the commissioner. The commissioner may, in its discretion, waive any requirements of this rule.

(8) 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:

(a) The investment adviser representative's home state has continuing education requirements that are at least as stringent as this rule; and

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

(9) Unregistered Periods. An investment adviser representative who was previously registered under 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 under the Act unless the investment adviser representative takes and passes the examination or receives an examination waiver as required by paragraph (10) of Rule 0780-04-03-.01 in connection with the subsequent application for registration.

(10) Definitions. As used in this Rule, the following terms mean:

(a) "Approved investment adviser representative 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 rule.

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

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

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

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

(f) "Investment adviser representative 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.

(g) "Investment adviser representative" means an individual who meets the definition of "investment adviser representative" under the Act and an individual who meets the definition of "investment adviser representative" under T.C.A. § 48-1-102.

(h) "NASAA" means the North American Securities Administrators Association, Inc. or a committee designated by its board of directors.

(i) "Reporting period" means one twelve (12) month period as determined by NASAA and described on the NASAA website, nasaa.org, in the Investment Adviser Representative Continuing Education Frequently Asked Questions. 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.

Authority: T.C.A. §§ 48-1-102, 48-1-109, 48-1-110, 48-1-112, 48-1-115, and 48-1-116.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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