For Immediate Release
MarketCounsel Comments on NASAA’s Model Rule Pertaining to Investment Adviser Solicitors
Englewood, NJ – September 9, 2009 – MarketCounsel, the leading business and regulatory compliance consulting firm to entrepreneurial investment advisory firms nationwide, announced its comments to the North American Securities Administrators Association’s (“NASAA”) proposed model rule regarding solicitors for investment advisers.
In July 2009, NASAA proposed a model rule clarifying the conditions under which state-registered investment advisers would be able to compensate solicitors. In addition, it provided optional guidance on the registration requirements for solicitors. As with all NASAA model rules, any final form of the rule would be left for the individual states to adopt at their discretion.
“Solicitor compensation by state-registered advisers is an area that has been a continued source of confusion and we were pleased to have had the opportunity to participate in shaping this initiative,” said Brian Hamburger, Founder and Managing Director of MarketCounsel. “While we appreciated NASAA’s attempt at providing clarity on this cloudy issue, we are concerned with the burden that the proposed rule would place on advisers looking to compensate solicitors, and we offered NASAA some suggestions on how to alleviate that burden.”
Because of a lack of uniformity among state regulations, advisers contemplating a solicitor or referral relationship must review and comply with multiple states’ regulations, which are often unclear and sometimes, even conflicting. To further cloud the issue, many state statutes are silent on the issue of solicitor compensation. To avoid confusion and encourage compliance, clarification in the form of a model rule is called for and MarketCounsel is pleased to participate in this initiative.
While MarketCounsel generally supports the overall proposal, a few of its provisions warrant further review. The full comment letter can be found at http://marketcounsel.com/multimedia/Comment_Letters/MarketCounsel%20Comment%20Letter%20re%20Regulations%20for%20Solicitors.pdf.
“As a regulatory compliance partner to investment advisory firms, MarketCounsel views participation in public dialogue and education about such issues as fundamentally important,” Hamburger continued. “We share NASAA’s desire to clarify the realm of solicitor compensation by state-registered advisers, and we look forward to continuing to facilitate this process.”
For more information on the MarketCounsel, please contact Carol Graumann at 973-732-3521 or firstname.lastname@example.org.
MarketCounsel is a business and regulatory compliance consulting firm for some of the country’s preeminent entrepreneurial investment advisors. Their comprehensive service revolves around sound, yet business-savvy, regulatory compliance solutions for a focused niche of clientele, while their affiliated law firm, The Hamburger Law Firm, renders a carefully coordinated array of legal services to prevent the traditional lack of accountability between legal and compliance.