The North American Securities Administrators Association (NASAA) released a report this week on the state-registered investment adviser population and their regulatory activities.
The first annual NASAA 2018 Investment Adviser Section Annual Report looks at regulatory policy work, education and training, and coordination efforts of NASAA’s Investment Adviser Section Committee and Project Groups.
“This report provides for the first time a snapshot of the state-registered investment adviser population in the United States and also showcases the tremendous amount of activity and resources state securities regulators bring to help these small- and mid-size businesses continue to succeed and both understand and comply with state securities law,” Joseph Borg, NASAA president and director of the Alabama Securities Commission, said.
The report also examines NASAA’s recently passed rule on the unethical business practices of investment advisers, investment adviser representatives, and federal covered advisers. Specifically, it prohibits advisers from improperly using client passwords to access accounts.
“With these two reports in hand, state-registered investment advisers can quickly identify common examination deficiencies of concern to our member regulators and develop stronger cybersecurity policies, procedures, and practices. Both of those outcomes go a long way in protecting the assets of Main Street investors, one of NASAA’s chief missions,” Andrea Seidt, Ohio Securities commissioner and chair of NASAA’s Investor Adviser Section, said.