NASAA Amends Exam Requirements for Investment Adviser Representatives

By WebCE
May 10, 2024

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On May 6, 2024, the North American Securities Administrators Association (NASAA) announced significant amendments to its Examination Requirements for Investment Adviser Representatives Model Rule. These changes signal a shift in the qualifications and standards for individuals operating in the investment advisory space.

“The approved amendments represent a significant step in adapting regulatory rules to the evolving landscape of federal and state regulatory activities,” said NASAA President Claire McHenry. “We look forward to working with our fellow NASAA members to implement these updated standards.”

One of the key revisions involves the replacement of the Chartered Investment Counselor (CIC) professional designation with the Certified Investment Management Analyst (CIMA) professional designation. This change allows investment adviser representatives to leverage the CIMA designation and exempt themselves from certain qualification exams. In fact, the CIC designation is no longer accepting applications and the program will be discontinued in 2025.

In addition to replacing the CIC designation, NASAA has also removed the Masters of Science & Financial Services (MSFS) designation from the list of professional designations that could exempt an investment adviser representative from qualification examination requirements.

“This amended rule enhances the evaluation and registration process for investment adviser representatives while maintaining high standards within the financial services industry,” said Elizabeth Bowling, Chair, NASAA Exams Advisory Committee, and Assistant Commissioner for the Securities Division, Tennessee Department of Commerce and Insurance.

The NASAA Exams Advisory Committee sought membership approval for changes to the IAR Examination Requirements Model Rule “intended to reflect current certification standards used in the financial services industry.”

While NASAA has amended its Model Rule, the implementation of these changes will require states to adopt the model amendments before they are applicable within their jurisdictions.