NASAA Moves to Expand Marketing Flexibility for State-Registered Advisors

The North American Securities Administrators Association (NASAA) announced that its membership has approved amendments to model rules that would permit the use of testimonials, endorsements and third-party ratings in advisor marketing materials; tools that have historically been restricted at the state level. The changes bring NASAA’s guidance largely in line with the Securities and Exchange Commission’s marketing rule adopted in 2021.

NASAA updated its Unethical Business Practices and Prohibited Conduct model rules to establish guardrails around performance-based marketing. The amendments also include changes to recordkeeping requirements related to testimonials and advertising materials, reinforcing oversight while expanding flexibility.

States that adopt the model rules can choose between incorporating the SEC’s marketing rule directly or implementing a more detailed version based on NASAA’s framework. Individual states also retain the ability to tailor their own approach, meaning adoption and implementation could vary across jurisdictions.

“These amendments promote consistency in the regulation of investment advisers and reinforce our commitment to fair markets while maintaining robust protections for investors,” said Stephen Brey, chair of NASAA’s Investment Adviser Section.