NASAA Board action on investment adviser SRO idea

(February 24, 2003) – The NASAA Board of Directors earlier this month voted to recommend to the membership that NASAA rescind its 1989 vote endorsing a self-regulatory organization (SRO) for investment advisers.

Following passage of the National Securities Markets Improvement Act of 1996, regulation of investment advisers was divided between the Securities and Exchange Commission and the states, a division of labor that is working well, the Board believes. NASAA’s earlier endorsement of an SRO for investment advisers needs to be re-examined in light of the changed regulatory landscape. The Board is concerned that an SRO could result in unnecessary and overlapping regulation and potentially be a burden on small business.

The issue will be discussed at a NASAA membership meeting in Washington, D.C. on Sunday, April 6.

For More Information:
Bob Webster, Director of Communications

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2003 Headlines, Newsroom