WASHINGTON, D.C. – (November 4, 2024) – The North American Securities Administrators Association (NASAA) is requesting public comments on proposed revisions to NASAA’s broker-dealer conduct rule entitled Dishonest or Unethical Business Practices of Broker-Dealers and Agents (“Conduct Rule”). The 45-day comment period will run from today to December 19. The proposed revisions are intended to update the Conduct Rule in light of the Securities and Exchange Commission’s (SEC) Regulation Best Interest (Reg BI) and other developments in the securities industry.
NASAA requested public comments on an initial Conduct Rule proposal in September 2023. After careful review of the comments and feedback received on the initial proposal, the NASAA Broker-Dealer Section and Market and Regulatory Policy and Review Project Group made revisions as reflected in the revised Conduct Rule proposal.
“NASAA’s Conduct Rule is designed to ensure that investors receive unbiased recommendations and that investment professionals put investors’ interests first,” said NASAA President Leslie Van Buskirk. “I want to thank the NASAA Broker-Dealer Section and Market and Regulatory Policy and Review Project Group for all of their work in preparing the initial draft, reviewing the comments, and preparing a revised proposal.”
The proposed revisions to NASAA’s model rule regarding Dishonest or Unethical Business Practices of Broker-Dealers and Agents are the product of extensive efforts by several NASAA committees and working groups over the past three years. The objectives of the proposal are to incorporate the core principles of Reg BI into NASAA’s existing broker-dealer conduct model rule and make other changes consistent with Reg BI.
James Nix, Chair of the NASAA Broker Dealer Section, stated “We look forward to hearing from stakeholders on this updated proposal. NASAA continues to be focused on ensuring investors receive the protections they deserve.”
The proposed revisions to NASAA’s broker-dealer conduct model rule are now available at nasaa.org.
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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
