WASHINGTON, D.C. – (May 6, 2024) – The North American Securities Administrators Association (NASAA) announced that at a membership meeting today NASAA members have voted to adopt amendments to two NASAA Model Rules.
NASAA amended its Model Rule Exempting Certain Merger & Acquisition Brokers (“M&A Broker Rule”) From Registration by revising it to achieve uniformity with federal law, specifically the amendments to subsection 15(b)(13) of the Securities Exchange Act of 1934 to exempt certain M&A Brokers from broker-dealer registration.
NASAA also amended its Model Rule: Examination Requirements for Investment Adviser Representatives (IAR Examination Requirements Model Rule), by updating the list of eligible professional certifications that can be used to exempt individuals from examination requirements.
“The approved amendments represent a significant step in adapting regulatory rules to the evolving landscape of federal and state regulatory activities,” said NASAA President Claire McHenry. “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 M&A Broker Rule. The changes will bring the NASAA model rule in alignment with federal requirements easing regulatory burdens and promoting uniformity.
“This updated model rule achieves uniformity with the federal statutory exemption, and helps facilitate M&A transactions involving eligible, privately held companies while ensuring investor protection,” said Amy Kopleton, Chair, NASAA Broker-Dealer Market and Regulatory Policy and Review Project Group, and Deputy Bureau Chief, New Jersey Bureau of Securities.
The NASAA Exams Advisory Committee requested membership approval for the amendments to the IAR Examination Requirements Model Rule. The updates are primarily intended to reflect current certification standards used in the financial services industry and include replacing the Chartered Investment Counselor (CIC) with Certified Investment Management Analyst (CIMA) certification and deleting the Master of Science and Financial Services (MSFS) degree as eligible professional designations under the model rule.
“This amended rule enhances the evaluation and registration process for investment adviser representatives while maintaining high standards within the financial services industry,” said Elizabeth Bowling, Chair, NASAA Exams Advisory Committee, and Assistant Commissioner for the Securities Division, Tennessee Department of Commerce and Insurance.
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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
