The North American Securities Administrators Association (NASAA) announced a proposed model rule designed to harmonize state marketing regulations for investment advisers with the Securities and Exchange Commission's (SEC) standards.

According to AdvisorHub, the initiative invites public comment on amendments to four advertising rules that would allow states to align their frameworks with the SEC's 2020 marketing rule updates. Those federal revisions, which took effect in 2022, permit advisers to use testimonials, endorsements, third-party ratings, and performance reports-provided they comply with specific conditions.

To date, 26 states have already updated their rulebooks to reflect the SEC's revisions, according to data from Wealthtender. NASAA President Leslie Van Buskirk underscored the importance of alignment, stating that the proposed amendments offer a model for states seeking to modernize their advertising regulations in step with federal standards.

The comment period will remain open until August 28. While some states have been hesitant to adopt every component of the SEC's framework, NASAA noted that the consensus favors harmonization.

AdvisorHub reports that investor advocates have expressed strong support for the initiative. "NASAA's proposed amendments to its investment adviser marketing model rule are a meaningful step toward regulatory consistency," said Adam Gana, managing partner of Gana Law Firm in Chicago and president of the Public Investors Arbitration Bar Association. "Aligning state and federal standards can reduce confusion for advisers and investors alike."

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