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NASAA Advances Investment Adviser Advertising Reforms and Franchise Broker Registration Framework

Posted on June 23rd, 2026 at 10:55 AM
NASAA Advances Investment Adviser Advertising Reforms and Franchise Broker Registration Framework

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

The North American Securities Administrators Association (NASAA) has approved significant regulatory initiatives aimed at modernizing oversight of investment advisers and strengthening protections for individuals considering franchise investments.

As reported by InvestmentNews, NASAA members recently approved amendments to four model rules governing investment adviser advertising. The changes align state-level regulations more closely with the SEC's 2020 advertising framework while preserving investor protection safeguards.

The amendments, which NASAA first released for public comment in July 2025, permit state-registered investment advisers to use testimonials, endorsements, and more detailed performance information under specified conditions. According to InvestmentNews, NASAA developed the revisions to reduce regulatory inconsistencies between state and federal requirements.

In addition to the advertising reforms, NASAA introduced a new Model Franchise Broker Registration Act designed to strengthen oversight of franchise brokers. The proposal addresses what regulators describe as a longstanding regulatory gap involving third-party brokers who market franchise opportunities.

According to InvestmentNews, the model legislation would provide states with a framework to require franchise broker registration, bringing greater transparency and accountability to a segment of the marketplace that often operates without uniform regulatory standards.

InvestmentNews reports that only a limited number of states currently require franchise brokers to register. The model act seeks broader adoption by establishing consistent requirements, including registration obligations, enhanced disclosures regarding compensation and legal history, and recordkeeping standards designed to support regulatory oversight.

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, nasaa, securities regulation, investment advisers, franchise brokers, regulatory compliance

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