Header graphic for print
Securities Compliance Sentinel Analysis of cutting-edge securities industry issues

What Brokers Need to Know to Make States Happy

Posted in State Enforcement

The North American Securities Administrators Association is exceedingly active, coordinating many broker-dealer examinations by a variety of state regulators. 

NASAA has found that the greatest number of violations involved books and records, and supervision.  NASAA’s report recommended 10 best practices so that broker-dealers may develop appropriate compliance practices and procedures.  In particular, NASAA recommended developing compliance procedures in, among other things, suitability; supervision; branch office audits; exception reports; outside business activities; selling away; advertisements and sales literature; correspondence; customer complaints; and senior customers. 

Although following this advice is not a “get out of jail card,” it does provide broker-dealers with a road-map for developing appropriate procedures to appease state regulators.