Investment Advisors Want to Know Where State Regulators Have Been Focusing Their Attention

NASAA’s Investment Advisor Section Issues Report Highlighting Activities The North American Securities Administrators Association (“NASAA”) recently issued the 2021 Investment Adviser Section Annual Report. The report provided a profile of state-registered Investment Advisers (“RIAs”) as follows” 81% of RIAS are 1-2 person shops 81% of clients are retail investors Top services include Individual Portfolio Management… READ MORE

5 Things to Know About NASAA’s Model Rules

NASAA published two model rules in November 2020 related to continuing education requirements and written policies and procedures. While each state determines whether to adopt model rules, you should familiarize yourself with the requirements, not just so you can comply, but because some of the requirements are just good business practices. Get ready for more… READ MORE

State Regulatory Actions Increase 33% – NASAA 2020 Enforcement Report

The NASAA 2020 Enforcement Report, based on 2019 activity, summarizes enforcement activity reported by the 51 U.S. member jurisdictions. Enforcement actions against firms and individuals in 2019 totaled 2,755 actions, up 33% from 2018. Overall enforcement activities included: 6,698 Complaints Received 6,525 Investigations Initiated 2,755 Enforcement Actions (Including criminal, administrative and civil enforcement actions) 5,898… READ MORE

More States Adopt Disbursement Hold Regulations to Protect Senior and Vulnerable Adults

As the population dynamics in the Unites States moves towards an unprecedented number of baby boomers entering their retirement years, federal and state regulators and FINRA have enacted regulations, examination priorities and enforcement efforts to protect the assets of senior and vulnerable adults. In 2020, the states of New Jersey (April 12th), West Virginia (June… READ MORE

NASAA Offers Resources for State and Provincial Pandemic Responses

Now is not a time to be shy about interacting with regulators to help understand how to respond to your issues and concerns in response to the Covid-19 outbreak. The North American Securities Administrators Association, Inc. (NASAA) is comprised of states and provincial securities regulators in the United States, Canada and Mexico. NASAA is acting… READ MORE

2019 NASAA Annual Conference Highlights Investment Advisor Exam and Enforcement Activity

2019 marked the 100th year of state regulation of the securities industry.  Although this milestone was the focus of the 2019 NASAA Annual Conference last week in Austin, Texas, NASAA also released two reports on the results of coordinated examinations of state registered investment advisors and enforcement activity. According to the 2019 Investment Advisor Coordinated… READ MORE

NASAA & FINRA Reports Point to Regulatory Expectations for Heightened Supervision

FINRA’s 2019 Risk Monitoring and Examination Priorities Letter was released last week. While the letter’s second paragraph lists areas of focus which are detailed throughout the report, the third paragraph includes a brief statement about how FINRA will focus on risk related to associated persons with a “problematic regulatory history”.  Where there was not a… READ MORE