8.4.2009 The investment adviser regulatory policy and review group of the North American Securities Administrators Association (NASAA) has released for feedback a proposed model rule governing solicitors for investment advisers. The proposed rule clarifies the conditions under which investment advisers, investment adviser representatives and solicitors must operate. The proposal also provides an optional template for regulators that want to exempt from registration solicitors performing certain activities, under specific conditions.
NASAA stated that the role of solicitors varies greatly, as does their treatment in its different jurisdictions. The proposed rule will provide guidance for the industry and promote uniformity among the states, they added. Among other things, the model rule:
- Makes it unlawful for an investment adviser to pay compensation to a solicitor unless certain conditions are met, such as that the solicitor is registered as an investment adviser representative;
- Specifies the contents of the disclosure document that solicitors must provide to clients; and
- Emphasizes that it does not offer relief from complying with any fiduciary duty.
Click http://www.nasaa.org/content/Files/IA_Solicitor_Rule_072209.pdf to access the proposed rule.