(a) Investment
adviser representative continuing education. Every investment adviser
representative registered under chapter 485A, HRS, must complete the following
IAR continuing education requirements each Reporting Period:
(1) IAR Ethics and Professional
Responsibility Requirement. An investment adviser representative must complete
six Credits of IAR Regulatory and Ethics Content offered by an Authorized
Provider, with at least three Credits covering the topic of ethics;
and
(2) IAR Products and Practice
Requirement. An investment adviser representative must complete six Credits of
IAR Products and Practice Content offered by an Authorized Provider.
(b) 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 the subrule (a)(2) IAR Products and Practice Requirement for each
applicable Reporting Period so long as the FINRA continuing education content
meets all of the following baseline criteria as determined by NASAA:
(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; and
(3) The continuing education content requires
that its participants demonstrate proficiency in the subject matter of the
educational materials.
(c) 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 section
16-39-453 complies with subsection (a)(1) and (a)(2) 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; and
(3) The continuing education content provided
by the credentialing organization during the relevant Reporting Period is
Approved IAR Continuing Education Content.
(d) 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.
(e) 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.
(f) 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 all required IAR 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.
(g)
Discretionary waiver by the Commissioner. The Commissioner may, in the
Commissioner's discretion, waive any requirements of this rule.
(h) 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 NASAA Model Rule on Investment Adviser
Representative Education; and
(2)
The investment adviser representative is in compliance with the Home State's
investment adviser representative continuing education requirements.
(i) Unregistered periods. An
investment adviser representative who was previously registered under the Act
and became unregistered must complete IAR 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 section
16-39-453 in connection with the
subsequent application for registration.
(j) Definitions. As used in this section:
"Act" means the Hawaii Uniform Securities Act (2008),
codified at Chapter 485A, of the Hawaii Revised Statutes.
"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 rule.
"Authorized Provider" means a person that NASAA or its
designee has authorized to provide continuing education content required by
this rule.
"Credit" means a unit that has been designated by NASAA or
its designee as at least fifty minutes of educational instruction.
"FINRA" means the Financial Industry Regulatory
Authority.
"Home State" means the state in which the investment
adviser representative has its principal office and place of business.
"IAR Ethics and Professional Responsibility Content" means
Approved IAR Continuing Education Content that addresses an investment adviser
representative's ethical and regulatory obligations.
"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.
"Investment adviser representative" or "IAR" 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 section
485A-102, HRS.
"NASAA" means the North American Securities Administrators
Association or a committee designated by its Board of Directors.
"Reporting Period" means one twelve-month period as
determined by NASAA. 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.
