The North American Securities Administrators Association (NASAA) has approved two model rules allowing advisors to maintain their licenses when they leave the industry.
Both measures advanced by NASAA will enable advisors to return to the industry within five years without licensing exams so long as advisors complete yearly continuing education. The annual continuing education requirement will ensure that advisors stay abreast of regulatory requirements and industry developments. One rule specifically addresses exam requirements for broker-dealer agents. The second rule focuses on investment advisor representatives.
NASAA President Melanie Senter Lubin shared that the rules are designed to provide flexibility for registered advisors who may need to leave the industry for various reasons and later return to their positions. According to AdvisorHub, NASAA's model rules align with the Financial Industry Regulatory Authority's (FINRA) Maintaining Qualifications Program. Individual states will have to adopt the model rules through regulation or legislation. NASAA also is considering a model rule for extending the validity of investment advisor representative exams not covered by the recent rules.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
