Solomon Exam Prep has just added two new courses to its Investment Adviser Representative Continuing Education course library! Both courses are approved by NASAA and earn credit towards the new CE requirement for investment adviser representatives (IARs).
An Introduction to ESG Investing
Curious about the increasingly popular form of investing called ESG (Environmental, Social, and Governance) investing? Solomon Exam Prep’s new continuing education course, “An Introduction to ESG Investing,” provides a helpful overview of the topic for IARs.
The course begins with a short history of the ESG movement, including the role that international and domestic governing bodies have played in jumpstarting ESG investing. The different types of ESG ratings are compared and explained. Additionally, the course describes the kinds of ESG securities offered, as well as ways to choose an ESG portfolio that aligns with an investor’s values. Finally, the course lays out the potential risks and benefits of ESG funds and common ESG investment philosophies, such as impact investing and sustainable investing.
By the end of the course, you’ll be able to do the following:
- Briefly describe the domestic and international roots of ESG investing and how it has grown to become a prominent force for change in the US and EU
- Identify the characteristics and examples of the types of metrics used to gauge compliance with ESG goals
- Understand the basic differences between the several types of ESG ratings agencies
- Describe the common types of ESG securities, such as mutual funds, ETFs and green bonds
- Identify examples of how states have led the shift in ESG investing
- Describe the risks and benefits of investing in ESG funds
- Define basic terms used in ESG investing tactics, such as impact investing and sustainable investing
The Introduction to ESG Investing course is worth one credit for the Products and Practices category. IARs must complete six credits of Products and Practices courses each year, of the 12 total required credits.
DeFi and Digital Assets
If you’ve been hearing terms such as “cryptocurrency,” “DeFi (short for decentralized finance),” and “NFTs” and wondering what all the fuss is about, you’re not alone. Solomon Exam Prep’s new “DeFi and Digital Assets” continuing education course offers a look into the world of digital assets through the lens of fiduciary duty.
The course discusses examples of digital assets such as cryptocurrency, dApps, DeFi Projects, and Non-Fungible Tokens (NFTs). You’ll learn about the function of these digital assets and asset tools, as well as the benefits and drawbacks for IARs and their clients. This includes a discussion of whether IARs have the tools to provide a sufficient suitability analysis on these digital assets for their clients. The course ends with an assessment of the SEC’s regulatory framework for these assets.
By the end of the course, you’ll be able to do the following:
- Explain the Prudent Investor Rule and identify two factors that are important in presenting a suitability analysis
- Identify at least one advantage and one disadvantage to using a smart contract-based dApp as opposed to a traditional financial instrument
- Compare and contrast a normal digital token with an NFT
- Identify how digital assets present a different kind of transparency when compared with traditional financial instruments
- Identify three differences in the risk profile of a digital asset compared to a traditional financial asset, including two difficulties associated with assessing risk
- Explain conflict of interest that occurs due to valuation methods in digital asset portfolios
The DeFi and Digital Assets course is worth one credit for the Ethics and Professional Responsibility category and falls into the ethics sub-category. Out of the 12 total required credits, IARs must complete six credits of Ethics and Professional Responsibility courses each year. Three of these must specifically be ethics courses.