NASAA Members Approve Amendments for Model Rule

On April 7, 2025, the North American Securities Administrators Association (NASAA) announced that members have voted to adopt proposed amendments to NASAA's Dishonest or Unethical Business Practices of Broker-Dealers and Agents model rule (Conduct Rule). The amendments were previously released for public comment on November 4, 2024, and they update the Conduct Rule to more closely align with the Securities and Exchange Commission's adoption of Regulation Best Interest (Reg BI).

Most notably, the amendments incorporate Reg BI's best interest duty of care for investment recommendations to retail customers into the Conduct Rule. In addition, the Conduct Rule now expressly prohibits potentially misleading uses of the titles "adviser" or "advisor" by broker-dealer agents. The model rule is HERE