Securities Regulation Daily Wrap Up, INVESTMENT ADVISERS—NASAA adopts amendments to modernize investment adviser advertising rules, (May 8, 2026)

By R. Jason Howard, J.D.

The amendments address unethical practices, prohibited conduct, and recordkeeping requirements.

NASAA has approved amendments to four model rules governing investment adviser advertising which modernize state-level requirements, “bringing them into closer alignment with current federal standards applicable to SEC-registered investment advisers.”

The amendments were originally released for public comment in July 2025 and now provide a “framework for states to permit state-registered investment advisers to utilize testimonials, endorsements, and specific performance reporting within specified guardrails.”

The Model Rules are designed to be broadly adopted but it will be up to the individual states to adopt them before they become effective.

The approved amendments apply to the following NASAA Model Rules:

• Unethical Business Practices: Rule 102(a)(4)-1;

• Prohibited Conduct: Model Rule USA 2002 502(b);

• Recordkeeping Requirements: Model Rule 203(a)-2; and

• Recordkeeping Requirements (USA 2002): Model Rule 411(c)-1.

Pursuant to the amendments and, if adopted, state-registered investment advisers, among other things, will be able to use marketing practices similar to SEC-registered firms and they must update their policies and procedures to align with the amendments and ensure that their marketing efforts, including testimonials, comply with the new guidelines to prevent fraudulent or misleading communications.

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