Agency Report to JCAR-Page 2
CSCL proposes to add a continuing education requirement for investment adviser representatives
registered under Uniformed Securities Act, MCL 451.2101 et seq. Investment adviser representatives
are vital to financial planning for many in Michigan, but unlike other financial professionals, are not
subject to a continuing education requirement. The North American Securities Administrators
Association (NASAA) has developed model rules for a continuing education program for investment
adviser representatives registered under the Michigan Uniform Securities Act. The goal of the model
rules is to ensure that investment adviser representatives receive continuing education relevant to
their duties and obligations under the act. Furthermore, the continuing education program will be
administered through NASAA, with tracking of the continuing education being done by the Financial
Industry Regulatory Authority, Inc. (FINRA). FINRA operates the Central Registration Depository
(CRD), which is the database that houses registration information for investment adviser
representatives in Michigan and other states.
Also, NASAA developed model rules that would require investment advisors to establish, maintain,
and enforce written policies and procedures tailored to a registrant’s business model. The goal of this
rule is to enhance regulatory compliance by minimizing conflicts and other risks to the investing
public, which serves to protect consumers of this industry and encourages uniformity with federally
registered investment advisers. This model rule will replace rule 451.4.21, the business continuity and
succession planning requirement, but will keep substantive requirements of 451.4.21.
4. Summary of proposed rules:
This ruleset adopts the North American Securities Administrators Association model rule that requires
continuing education for investment adviser representatives. Also, the ruleset will adopt the North
American Securities Administrators Association investment adviser policies and procedures model
rule, which requires investment advisers to establish, maintain, and enforce written policies and
procedures tailored to an investment adviser’s business model.
5. List names of newspapers in which the notice of public hearing was published and
The notice was published in the following newspapers:
The Grand Rapids Press published September 30, 2021.
Ann Arbor News published September 30, 2021.
The Marquette Mining Journal published October 1, 2021.
6. Date of publication of rules and notice of public hearing in Michigan Register:
7. Date, time, and location of public hearing:
10/18/2021 01:00 PM at Sun Conference Room , 2407 North Grand River Avenue, Lansing, MI
8. Provide the link the agency used to post the regulatory impact statement and cost-benefit
analysis on its website:
9. List of the name and title of agency representative(s) attending public hearing:
MCL 24.242 and 24.245