North American Securities Administrators Association (NASAA)

What NASAA Is

The North American Securities Administrators Association (NASAA), organized in 1919, is the oldest international regulatory organization focused on investor protection. It is a voluntary association of securities regulators that coordinates state, provincial, and territorial efforts across North America to prevent fraud and ensure integrity in the securities industry.

Membership and Structure

• NASAA has 67 members: regulators from all 50 U.S. states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico.
• Members are state or provincial securities regulators who may be appointed or career officials, or operate under their state attorneys general.
• NASAA operates within a complementary regulatory framework alongside federal regulators and industry self-regulatory organizations.

Core Functions

NASAA members perform a range of regulatory and investor-protection activities, including:
– Licensing broker-dealers, stockbrokers, and investment-adviser firms (state oversight typically covers advisers managing less than $100 million in assets).
– Registering securities offerings that are subject to state law.
– Examining brokerage and investment-adviser firms for compliance and accurate record-keeping.
– Investigating investor complaints and suspected fraud.
– Enforcing state and provincial securities laws through fines, restitution, penalties, prosecutions, and conduct remedies.
– Reviewing certain offerings not exempt from state law.
– Promoting investor education and public awareness of fraud risks.
– Advocating for consistent, sensible state securities laws and regulations.

Exams and Professional Licensing

NASAA administers several securities licensing examinations used by states, including:
– Series 63 (Uniform Securities Agent State Law Exam)
– Series 65 (Uniform Investment Adviser Law Exam)
– Series 66 (Combined Agent and Investment Adviser Exam)

In most states, the Series 63 is required for registered securities agents; Series 65/66 relate to investment-adviser qualification.

Investor Resources and Outreach

NASAA provides tools and guidance to help the public identify and avoid fraud, such as:
– Fraud red flags and top investor traps
– A fraud-awareness quiz and educational materials
– Information on how to contact local securities regulators and investigate brokers or advisers

How NASAA Interacts with Other Regulators

NASAA’s work complements federal regulation (e.g., the SEC) and industry oversight. State and provincial regulators focus on local licensing, investigations, and enforcement that address investor protection at a community level, while coordinating with federal authorities when cases involve broader jurisdictional issues.

Key Takeaways

• NASAA is a voluntary association of 67 state, provincial, and territorial securities regulators across North America, founded in 1919.
• Its primary mission is investor protection through licensing, registration, examination, investigation, enforcement, education, and advocacy.
• NASAA administers state-required exams (Series 63, 65, 66) and provides public resources to help investors recognize and report fraud.