Article Originally Published: Financial Advisor
As the Securities and Exchange Commission pumps the brakes on securities enforcement, the North American Securities Administrators Association is preparing to roll out a regulatory standard of its own to help states better protect investors from financial advisors with conflicts of interest, an NASAA official said in an interview today.
In particular, NASAA wants to stop firms and professionals from using the titles “adviser” or “advisor” unless they are registered as an RIA or investment advisor representative. That goes beyond what the SEC’s own Regulation Best Interest calls for.
The association plans to unveil its new regulatory standard at its annual fall meeting in Scottsdale, Ariz., this year, said Amy Kopleton, chair of the NASAA’s Broker-Dealer Market and Regulatory Policy and Review Project Group.
The association’s model is built around Regulation Best Interest, the SEC’s mandate for advisors to act in their clients’ best interest without conflicts (it went into effect two years ago). The NASAA model regulation was at first significantly tougher, but outcry from the industry persuaded the association’s project group to eliminate a number of requirements in order to track Reg BI more closely instead of forcing advisors to meet higher standards.
