WASHINGTON, D.C. (April 21, 2021) – The North American Securities Administrators Association (NASAA) today released its annual report on the state-registered investment adviser industry and the related regulatory activities of state securities regulators.
“Investment advisers and their representatives play an important role in the financial lives of millions of Americans. State securities regulators devote significant resources toward helping state-registered investment advisers, many of which are small- and mid-size businesses, better serve their clients by remaining in compliance with state securities law,” said Lisa A. Hopkins, NASAA President and West Virginia Senior Deputy Securities Commissioner.
The report highlights the important regulatory policy work, education and training, and coordination efforts of NASAA’s Investment Adviser Section Committee and its Project Groups. Major undertakings discussed in the report include the development and NASAA member adoption of model rules regarding Investment Adviser Representative Continuing Education and Investment Adviser Policies and Procedures.
Alex Glass, Indiana Securities Commissioner and Chair of NASAA’s Investment Adviser Section, said the report also discusses the challenges faced by the investment adviser industry and state securities regulators stemming from the COVID-19 pandemic.
“Regulators and industry both had to make adjustments to the rapidly changing landscape practically overnight,” Glass said. “With the shift from traditional regulation processes to the use of virtual tools and technology, communication and flexibility were key to ensuring registrants stayed in compliance and investors were protected.”
Other highlights of the report include an overview of compliance areas state-registered investment advisers should consider in light of the pandemic and increased remote working environments. The report also includes an updated profile of state-registered investment advisers and showcases proactive outreach initiatives to state-registered investment advisers by NASAA member agencies.
State securities regulators have regulatory oversight responsibility for nearly 17,500 investment advisers with assets under management of $100 million or less. States also have sole regulatory oversight of all investment adviser representatives, the financial professionals who work directly with retail investors, whether the adviser is registered with a state or with the SEC.
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Bob Webster | Director of Communications
Noelle Lane | Communications & Outreach Specialist