September 23, 2018

Download: Notice of Request for Public Comment

The North American Securities Administrators Association, Inc. (NASAA) is requesting public comment on a proposed investment adviser model rule to address information security and privacy, a proposed amendment to the investment adviser NASAA model Recordkeeping Requirements rule, and a proposed amendment to the NASAA model Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers rule (collectively, “Rule Proposal”).

The Rule Proposal has three components. First, a proposed model rule to require investment advisers to adopt policies and procedures regarding information security (both physical security and cybersecurity) and to deliver its privacy policy annually to clients (“Proposed Information Security and Privacy Rule”). Second, a proposed amendment to the existing investment adviser NASAA model recordkeeping requirements rule to require that investment advisers maintain these records (“Proposed Recordkeeping Rule Amendment”). Finally, a proposed amendment to the existing investment adviser NASAA model Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers and the Prohibited Conduct in Providing Investment Advice model rules (collectively “UBP Model Rules”) to include failing to establish, maintain, and enforce a required policy or procedure to the enumerated list of unethical business practices/prohibited conduct (“Proposed Unethical Business Practices Rules Amendment”).

Comments on the Rule Proposal are due on or before November 26, 2018. To facilitate consideration of comments, please send comments to Andrea Seidt (Andrea.Seidt@com.state.oh.us), Investment Adviser Section Chair; Elizabeth Smith (Elizabeth.Smith@dfi.wa.gov), Investment Adviser Regulatory Policy and Review Project Group Chair; and the NASAA Legal Department (nasaacomments@nasaa.org).
We encourage, but do not require, comments to be submitted by e-mail.

Hard copy comments can be submitted at the address below.
NASAA Legal Department
750 First Street, NE, Suite 990
Washington, DC 20002

Note: After the comment period has closed, NASAA will post to its website the comments it receives as submitted by the authors. Parties should therefore only submit information that they wish to make publicly available. Further, the following notice will appear on NASAA’s website where comments are posted NASAA, its agents, and employees accept no responsibility for the content of the comments posted on this Web page. The views, expressions, and opinions expressed in the comments are solely those of the author(s) of the comments.