Active Managers are most often organized as an investment adviser:
- Provides advice or analysis on securities either by making direct or indirect recommendations to clients or by providing research or opinions on securities or securities markets.
- Receives compensation in any form for the advice provided.
- Engages in a regular business of providing advice on securities.
A good overview of the regulation of investment advisers can be found at the NASAA web site Investment Adviser Guide.
Organized in 1919, the North American Securities Administrators Association (NASAA) is the voice of state securities agencies responsible for efficient capital formation and grass-roots investor protection. Their fundamental mission is protecting consumers who purchase securities or investment advice, and their jurisdiction extends to a wide variety of issuers and intermediaries who offer and sell securities to the public.
NASAA members license firms and their agents, investigate violations of state and provincial law, file enforcement actions when appropriate, and educate the public about investment fraud.
Through the NASAA web site Quick Links, individuals can find contact information for the individual state securities administrators.
For information on the U.S. Securities and Exchange Investment Adviser requirements, we recommend you visit the SEC’s Investment Adviser web pages.
The following are links to materials compiled by NAAIM for its members on compliance issues
- Reporting Hypothetical Results — Clover Letter
- Reporting Hypothetical Results — Clover Reply Letter
- Reporting Hypothetical Results — Using Backtested Results
- Reporting Hypothetical Results — Clover Letter Questions
- SEC Registration Requirements
- State Registration Requirements
NAAIM Keeps Members On Track
Compliance is a continually evolving subject as the concerns of the regulators change to keep pace with industry issues, technology and consumer protection issues. Through its annual conference, CRAM session, webinars and online exchanges, NAAIM provides its members with an opportunity to keep abreast of compliance issues and develop effective solutions.