NASAA Releases 2018 Investment Adviser Annual Report


Recently, the North American Securities Administrators Association ("NASAA")released its 2018 Investment Adviser Annual Report which is its first ever "annual report identifying the contours of the state-registered investment adviser population and the related regulatory activities of state securities regulators." While the report highlights the previously released top registered investment adviser ("RIA") regulatory compliance deficiencies by category, it also provides a wealth of valuable data about the total number and characteristics of both state and federally-registered RIA firms. In addition, the report summarizes the work of the various NASAA project groups including cybersecurity and technology, operations, regulatory policy and review, resources and publications, and training.

Of particular note is that 25% of examined firms were deficient in cybersecurity compliance practices.  This is likely understated as well considering this being the first time examined and the relative immaturity of examiners in this area.

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Mark Brown