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Regulation and Compliance > State Regulation > NASAA

NASAA Clears Way for 5-Year Breaks From Industry, Adds Guam

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The North American Securities Administrators Association said Monday that it has adopted two new rules — one allowing states to permit investment advisor representatives to leave the securities industry for up to five years as well as revisions to NASAA’s Uniform Application to Register Securities, or Form U-1.

NASAA members also voted Monday to admit Guam’s securities regulator to the association.

“We are pleased to welcome the Guam Department of Revenue and Taxation to the association,” NASAA President Andrew Hartnett said in a statement. “Guam’s admission to NASAA will benefit the citizens and government of Guam as well as the securities industry more broadly.”

The model rule allows states to permit IARs to leave the securities industry for up to five years while maintaining their exam qualifications, provided they complete certain annual continuing education requirements.

“This model rule will align investment adviser representative and broker-dealer agent regulations where adopted and will facilitate greater career flexibility for investment adviser representatives,” said Linda Cena, chair of NASAA’s Investment Adviser Representative Continuing Education Committee, in a statement.

Guam’s Department of Revenue and Taxation had requested to join the association. It is the first new NASAA member since 2005, when the U.S. Virgin Islands joined, the group said.

“Guam’s admission to NASAA opens the door for Guam’s eventual participation in the CRD, IARD, and EFD systems, which will simplify and streamline the registration of securities professionals and securities filings in the territory once that process is complete,” Hartnett said.

The amended Form U-1 will require issuers to agree to deliver certain proxy solicitation materials to states within two business days after submitting them to the Securities and Exchange Commission, NASAA said.

The requirement “will give state securities regulators visibility into shareholder proposals that pose potential investor protection risks,” said Bill Beatty, chair of NASAA’s Corporation Finance Section, in a statement.

The amended Form U-1 will be posted to NASAA’s website and made available for use by NASAA members and filers soon, the group said.


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