NASAA ADDING ENFORCERS

The Washington-based North American Securities Administrators Association, which represents state and Canadian provincial regulators, plans to hire two people to help coordinate enforcement action and investment adviser regulations by the states.

Regulation of investment advisers managing less than $25 million will be a major focus of state agencies this year, says the group’s executive director, Neal Sullivan. The new workers will probably be a lawyer to help state enforcement actions and another staff member to work on investment adviser initiatives, he adds.

Two added public relations workers are also planned, he says.

Mr. Sullivan sees states being tougher in broker-dealer regulatory enforcement, “less willing to allow withdrawals from their states” for infractions, “more willing to sanction.”

States have been allowing problem brokers to leave their states without sanctions, he says. “The industry has raised questions about the state review, saying there aren’t that many revocations and sanctions,” he says.

As a result, states such as California are likely to start more stringent licensing and enforcement activities, he adds.