More On Legal & Compliancefrom The Advisor's Professional Library
- Whistleblowers A whistleblower is any individual providing the SEC with original information related to a possible violation of federal securities law. The Dodd-Frank Act established a whistleblower program that enables the SEC to reward individuals who voluntarily provide such information.
- Using Solicitors to Attract Clients Rule 206(4)-3 under the Investment Advisors Act establishes requirements governing cash payments to solicitors. The rule permits payment of cash referral fees to individuals and companies recommending clients to an RIA, but requires four conditions are first satisfied.
The North American Securities Administrators Association announced Wednesday that it will hike enrollment fees for its state Series 63, 65 and 66 exams on June 1.
Despite increased costs of maintaining the exams, NASAA says the exam fees have not increased for the past four years.
The state tests are administered for NASAA by the Financial Industry Regulatory Authority (FINRA), and “passing an exam is normally a prerequisite for being licensed by a state before a broker-dealer or investment advisor can work with investors,” says NASAA spokesman Bob Webster.
Candidates enrolling for these exams on or after June 1 will be charged the following:
--Series 63, $115, currently $96;
--Series 65, $155, currently $135; and
--Series 66, $145, currently $128.
While these exams, if passed and kept active, need only be completed once by an advisor, David Bellaire, executive vice president & general counsel for the Financial Services Institute, says that the fees “would be paid multiple times by those who fail to pass the exam and those who leave the business for more than two years and decide to rejoin.”
Says Bellaire: “Any increase in fees in this economy concerns us. While these are not large increases, continued incremental increases in fees could reduce investor access to professional financial advice.”
Jonathan Henschen, president of Henschen & Associates, a broker-dealer recruiting firm, notes that "with the shift to more and more advisors" performing advisory services, "it makes sense that [NASAA] would raise the costs in that one area. Having gone four years without raising the fees, it makes sense that they’d be doing it now."
More about NASAA on AdvisorOne: