The North American Securities Administrators Association (NASAA) is a distinguished organization of securities regulators dedicated to safeguarding investors from fraud. Established in 1919 in the U.S. state of Kansas, NASAA’s membership consists of 67 securities administrators spanning North America. These committed individuals collaborate to protect clients receiving investment advice or engaging with securities, in concert with federal, state/provincial, and industry regulatory bodies.
Key Insights
- Established in 1919, NASAA stands as the oldest international regulatory body devoted to investor protection.
- It is a voluntary association, comprising 67 state, provincial, and territorial securities administrators across the United States, District of Columbia, Puerto Rico, U.S. Virgin Islands, Canada, and Mexico.
- NASAA’s role is crucial in safeguarding investors as part of a multi-tiered regulatory framework that encompasses federal, state/provincial, and industry regulations.
- The organization aims to educate the public on identifying and avoiding fraud, investigates law violations, and enforces regulations.
Unveiling NASAA’s Mission
NASAA is diligently working to help investors recognize and evade fraud through public education, legal investigations, and enforcement measures. Members of NASAA include appointed regulators, career professionals, and those under the jurisdiction of their states’ Attorneys General. These officials are pivotal in licensing securities firms and investment professionals—including broker-dealers and investment advisers—registering some securities offerings, reviewing financial offerings from smaller companies, monitoring branch office sales practices and record-keeping, promoting investor education, and, importantly, enforcing state securities laws.
Beyond safeguarding investors, certain state regulators also assist small businesses in raising capital and maintaining compliance with securities laws. Additionally, some regulators operate within departments that oversee insurance or banking as well.
NASAA’s reach includes securities regulators from every U.S. state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico. The NASAA website offers a wealth of resources for both investors and professionals, such as a fraud center that lists prevalent investor traps, fraud awareness quizzes, red flags to watch for scams, contact details for local securities regulators, and ways to vet brokers or investment advisers.
Special Considerations of NASAA’s Work
NASAA members are government officials with a mission to protect investors and preserve the integrity of the securities sector through various strategies:
- Licensing stockbrokers, investment adviser firms managing less than $100 million, and securities firms operating within the state.
- Registration of certain securities offered to the state’s investors.
- Investigating investor complaints and potential fraudulent activities.
- Enforcing state securities laws by imposing fines, providing restitution to defrauded investors, prosecuting white-collar crimes, and implementing binding conduct remedies.
- Conducting examinations of brokerage and investment advisory firms to ensure they adhere to securities laws and accurately maintain client records.
- Reviewing non-exempt securities offerings under state law.
- Educating investors about their rights and imparting tools and knowledge for informed financial decisions.
- Advocating for robust, logical, and consistent state securities laws and regulations.
NASAA also oversees the administration of the Series 63, Series 65, and Series 66 regulatory examinations, essential for licensing financial professionals to operate as agents. In many states, passing the Series 63 is a standard requirement for all registered securities agents.
Related Terms: investment advice, securities regulation, fraud, broker-dealer, investment adviser.
References
- North American Securities Administrators Association. “Our Role”.
- North American Securities Administrators Association. “Our Story”.
- North American Securities Administrators Association. “Exam FAQs”.
