Marketing rules for investment advisors would be more closely aligned at both the state and federal levels under a newly released proposal, according to Advisor Hub.
The North American Securities Administrators Association (NASAA), the membership organization for state securities agencies, said it is seeking public comment on its plan to amend four rules related to investment adviser marketing to make them more consistent with federal standards.
In 2020, the Securities and Exchange Commission amended its marketing rule, which is designed to comprehensively regulate investment advisers’ marketing communications. The SEC revision permits testimonials, endorsements, third-party ratings, and performance reports in investment adviser marketing provided certain regulatory standards are met.
NASAA’s new proposal would update its own rules with changes designed to make them uniform with the SEC’s current adviser advertising regulations. Comments on the plan are due on or before August 28, 2025.
“These proposed amendments reflect NASAA’s efforts to provide a model for updates to state investment adviser advertising rules based in part on changes made by the SEC to marketing rules for SEC-registered advisers,” said NASAA President Leslie Van Buskirk. “We welcome public input and thank the Investment Adviser Regulatory Section Policy and Review Project Group for their work on this proposal.”
“We look forward to hearing from stakeholders on this updated proposal. NASAA remains committed to ensuring that investors receive the protections they deserve and to encouraging uniform regulatory standards for state-registered investment advisers,” said Stephen Brey, Chair of the NASAA Investment Adviser Section and Co-Chair of the Regulatory Section Policy and Review Project Group.
NASAA said state regulators believed in the need for more consistency between state and federal securities laws. The Public Investors Arbitration Bar Association (PIABA), an organization dedicated to investor protection and advocacy, supported NASAA’s plan.
“NASAA’s proposed amendments to its investment adviser marketing model rule are a meaningful step toward regulatory consistency,” said PIABA President Adam Gana. “Aligning state and federal standards can reduce confusion for advisers and investors alike.”
It was reported that 26 states have revised their own rules to align with the SEC’s amendments to its marketing rule.
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