The North American Securities Administrators Association (NASAA) has released proposed amendments to its model rules governing investment advisor advertising and is seeking public comment through August 28, according to ThinkAdvisor.

The proposal aims to modernize NASAA's rules to reflect the Securities and Exchange Commission's (SEC) 2020 updates to its marketing rule. That rule, applicable to SEC-registered advisers, permits the use of testimonials, endorsements, third-party ratings, and performance reporting in advertisements; provided advisors meet specific regulatory standards.

By contrast, NASAA's current model rules prohibit testimonials, endorsements, and third-party ratings outright. They also impose strict limitations on referencing past specific recommendations, requiring that investment advisers disclose extensive details for every recommendation made.

NASAA's proposed revisions would create a more uniform regulatory framework across state and federal levels. The amendments under consideration address unethical business practices, prohibited conduct, and recordkeeping obligations.

"These proposed amendments reflect NASAA's efforts to provide a model for updates to state investment adviser advertising rules based in part on changes made by the SEC," said NASAA President Leslie Van Buskirk.

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