Prepare for Maryland’s recently adopted IAR continuing education requirements and get help meeting regulatory obligations to ensure RIA compliance.
As 2021 wraps up, the new year brings new opportunities—and new requirements. The Maryland Securities Division recently adopted amendments to its Investment Adviser Regulations. These amendments become effective on December 27, 2021, and, starting in 2022, investment adviser representatives (IARs) registered in Maryland must comply.
In collaboration with the North American Securities Administrators Association (NASAA), the Maryland Securities Division has developed specific continuing education (CE) requirements for state-registered and SEC-registered investment advisers. Under the new requirements, IARs must earn 12 CE credits annually to maintain their IAR registration in Maryland. The 12 CE credits must be divided equally between two modules:
- Products and Practices
- Ethics and Professional Responsibility
IARs are required to take NASAA-approved CE courses from authorized content providers or vendors. In response to feedback received during the comment period, the Maryland Securities Division assures IARs it is working closely with NASAA to offer IARs a range of course and vendor options to satisfy the CE rule.
In addition to adopting these new regulatory amendments, the Maryland Securities Division has eliminated the IAR registration exemption for sole proprietors. As of January 1, 2022, all state-registered sole proprietors filing applications on behalf of their IARs through the CRD system will be assessed a $50 initial registration fee per IAR application as well as annual renewal fees. And as of March 31, 2022, all IARs for state-registered sole proprietors will be required to register as IARs with the Maryland Securities Division by filing Form U4 through the CRD system.
The Maryland Securities Division has provided additional guidance to help IARs understand these new mandatory CE requirements. If you need help meeting regulatory obligations or filing new forms, please get in touch. Joot’s compliance experts have completed numerous required filings for our clients. We’re here to help ease your compliance burden in 2022 and beyond.