NASAA Proposes Uniform State Adviser Marketing Rules Aligned With New SEC Standard

The U.S. Securities and Exchange Commission adopted a new investment adviser marketing rule in 2020, combining its advertising and cash-solicitation regulations and allowing client testimonials subject to disclosure and oversight requirements. State rules did not change in tandem, leaving advisers operating across state lines exposed to regulatory conflicts and compliance risks.

The North American Securities Administrators Association recently approved a model-rule proposal recommending that states align their investment adviser marketing and advertising requirements with the SEC's 2020 rule. If adopted by individual states, the proposal could establish consistent standards for the use of promotional content such as client testimonials. No transaction amount is involved, and each state must still complete its own legislative or rulemaking process.