By Anne Sherry, J.D.
The North American Securities Administrators Association (NASAA) admitted Guam’s securities regulator to the group and approved two regulatory proposals. The first proposal amends Form U-1 to require issuers to deliver proxy solicitation materials to states within two days of SEC filing. The second proposal adopts a model rule for states to use to allow investment adviser representatives to leave the industry for up to five years while maintaining their exam qualifications.
Guam welcomed. Guam is the first new NASAA member since the U.S. Virgin Islands joined in 2005. The territorial Department of Revenue and Taxation will have access to NASAA’s training and educational library as well as indirect benefits of membership, particularly regulatory access to the Central Registration Depository, Investment Adviser Registration Depository, and Electronic Filing Depository. “Guam’s admission to NASAA opens the door for Guam’s eventual participation in the CRD, IARD, and EFD systems, which will simplify and streamline the registration of securities professionals and securities filings in the territory once that process is complete,” said NASAA President Andrew Hartnett.
Form U-1 amendments. NASAA members also approved revisions to Form U-1, or the Uniform Application to Register Securities. The new amendments require issuers to agree to deliver certain proxy solicitation materials to states within two business days after submitting them to the SEC. This “will give state securities regulators visibility into shareholder proposals that pose potential investor protection risks,” said Bill Beatty, Chair of NASAA’s Corporation Finance Section.
Model rule. Finally, NASAA adopted a model rule that provides states a structure to extend investment adviser examination validity. Representatives may leave the securities industry for up to five years; as long as they complete continuing education requirements, they will maintain their exam qualifications. The model rule is a companion to a similar broker-dealer rule that NASAA adopted last fall.
Linda Cena, Chair of the Investment Adviser Representative Continuing Education Committee, said the rule “will align investment adviser representative and broker-dealer agent regulations where adopted and will facilitate greater career flexibility for investment adviser representatives.”