WASHINGTON, D.C. – (April 7, 2025) – The North American Securities Administrators Association (NASAA) announced today that members have voted to adopt proposed amendments to NASAA’s Dishonest or Unethical Business Practices of Broker-Dealers and Agents model rule (Conduct Rule). The amendments were previously released for public comment on November 4, 2024, and they update the Conduct Rule to more closely align with the Securities and Exchange Commission’s adoption of Regulation Best Interest (Reg BI).
Most notably, the amendments incorporate Reg BI’s best interest duty of care for investment recommendations to retail customers into the Conduct Rule. In addition, the Conduct Rule now expressly prohibits potentially misleading uses of the titles “adviser” or “advisor” by broker-dealer agents. The amendments adopted today will boost investor protection and help foster uniformity on these important issues across federal and state law.
“I want to thank the members of NASAA’s Broker-Dealer Section Committee and Market and Regulatory Policy and Review Project Group for their work on the amendments to the model rule,” said NASAA President Leslie Van Buskirk. “We look forward to working with our fellow NASAA members to implement these updated standards.”
The NASAA Broker-Dealer Section Committee and Market and Regulatory Policy and Review Project Group requested membership approval for the amendments to the Conduct Rule. These changes will ensure that the Conduct Rule defines and clarifies various obligations or components of this new conduct standard for purposes of state interpretation and enforcement.
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About NASAA:
Organized in 1919, the North American Securities Administrators Association (NASAA) is the oldest international organization devoted to investor protection. NASAA is a voluntary association whose membership consists of the securities regulators in the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, the 13 provincial and territorial securities regulators in Canada, and the securities regulator in México. For more information, visit www.nasaa.org.
For More Information:
Fred Baldassaro, Director of Communications
fbaldassaro@nasaa.org | 202-737-0900
Karen Grajales, Manager, Communications and Investor Outreach
kgrajales@nasaa.org | 202-737-0900
