What Is the North American Securities Administrators Association (NASAA)?
Let me explain what the North American Securities Administrators Association, or NASAA, really is. It's an organization of securities regulators aimed at protecting you, the investor, from fraud. Founded back in 1919 in Kansas, NASAA includes 67 securities administrators from across North America, and they work to safeguard customers dealing with investment advice or securities. This fits into a broader regulatory system that operates at federal, state or provincial, and industry levels.
Key Takeaways
You should know that NASAA, organized in 1919, stands as the oldest international regulatory body devoted to investor protection. It's a voluntary association with members from 67 state, provincial, and territorial securities administrators across the 50 US states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico. They protect customers of investment advice and securities within a complementary system involving federal, state or provincial, and industry regulations. Ultimately, NASAA helps you identify and avoid fraud by educating the public, investigating violations of state and provincial laws, and pursuing enforcement actions.
Understanding the North American Securities Administrators Association (NASAA)
As I see it, NASAA directly assists you in spotting and steering clear of fraud through public education, investigations into law violations, and enforcement actions. Its members are regulators who might be appointed, hired for specialized roles, or fall under state Attorneys General. These folks handle licensing for securities firms and professionals like broker-dealers and investment advisers, registering certain securities offerings, reviewing small company financial offerings, auditing branch office practices and records, promoting investor education, and crucially, enforcing state securities laws.
Beyond just protection, some state regulators under NASAA also aid small businesses in raising funds while complying with securities laws. You might find that some work in departments overseeing insurance or banking too. NASAA's membership spans securities regulators from all 50 US states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico. On their website, you'll find resources like a fraud center detailing top investor traps, a fraud awareness quiz, red flags for fraud, ways to contact local regulators, and tips on investigating brokers or advisers.
Special Considerations
NASAA members operate within government structures to protect you and maintain securities industry integrity. They license stockbrokers, investment adviser firms managing under $100 million in assets, and securities firms doing business in the state. They register certain securities offered to state investors, investigate complaints and potential fraud, enforce laws through fines, penalties, restitution, prosecutions, and conduct remedies. They examine firms for compliance and accurate records, review non-exempt offerings, educate you on your rights and informed decisions, and advocate for strong state securities laws.
NASAA's Role in Examinations
- NASAA administers the Series 63, Series 65, and Series 66 exams, which license financial professionals as agents.
- In most states, the Series 63 is required for all registered securities agents.
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