State Regulators Tell Advisors What They Want To See From Examined Firms

Tuesday, October 04, 2011 07:39
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State Regulators Tell Advisors What They Want To See From Examined Firms

As the deadline for mid-size RIA firms to move from SEC supervision to the states approaches, state regulators have put together a list of common mistakes they see.

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The North American Securities Administrators Association (NASAA) says that 59.6% of the advisors it examined last year were deficient in at least one aspect of their registration. 

 

That's not great, but it's a lot better than the 70% who missed a perfect score back in 2007.

 

Most of the problems boiled down to Part 1 and Part 2 of the ADV not lining up.

 

Advisors who want to be in full compliance can use the list as a checklist of practices to avoid.

 

One bit of trivia: It isn't in the presentation, but NASAA is also worried about advisors using "RIA" in their signatures as though it was a certification.

 

I've never seen that, but guess it's prevalent enough for them to notice.

 

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