The North American Securities Administrators Association is seeking public comment on proposed amendments to rules related to investment advisor advertising. The proposal would update the NASAA rules to align them more closely to the Securities and Exchange Commission's marketing rule.
Comments are due on or before Aug. 28.
The SEC amended its marketing rule in 2020 to permit testimonials, endorsements, third-party ratings and performance reports in investment advisor marketing provided certain regulatory standards are met.
Under existing NASAA model rules, "testimonials, endorsements, and third-party ratings are explicitly prohibited, while past specific recommendations are restricted unless the investment adviser also provides full information about all recommendations made by the investment adviser, including the name of each security, the date and nature of the recommendation, the price at the time, the price at which the recommendation was to be acted upon, and the most recently available market price of each security," NASAA states.
“These proposed amendments reflect NASAA’s efforts to provide a model for updates to state investment adviser advertising rules based in part on changes made by the SEC to marketing rules for SEC-registered advisers,” said NASAA President Leslie Van Buskirk, in a statement. “We welcome public input and thank the Investment Adviser Regulatory Section Policy and Review Project Group for their work on this proposal.”
The NASAA rules under review include unethical business practices, prohibited conduct and recordkeeping requirements.
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