NASAA seeks comments for proposed RIA rules

Public comments were called for today by the North American Securities Administrators Association Inc. of Washington regarding a proposed set of investment adviser model rules. Under the rules, clients would have to have a net worth of at least $1.5 million, up from $1 million, in order for investment advisers to charge them performance fees. Also, clients would have to have at least $750,000, up from $500,000, in assets under management in order for advisers to charge them such fees. These proposed rules would update model regulations for states to reflect the 2002 model Uniform Securities Act. They contain substantive changes for qualification exams for investment adviser representatives. NASAA’s investment adviser regulatory policy and review project group also included amendments to exam requirements as part of these proposed rules. A NASAA statement said the changes were proposed because rules in use in some states were developed before the Series 65 exam to become a broker were formulated. The comment period will be open through Aug. 8.