How NASAA Sets Standards for State Licensing

🏛️ How NASAA Sets Standards for State Licensing

Understanding the Role of the North American Securities Administrators Association (NASAA)

If you’re preparing for exams like the Series 63, 65, or 66, it’s essential to understand the organization behind them: NASAA—the North American Securities Administrators Association. NASAA plays a central role in setting licensing standards for investment advisers and broker-dealer agents at the state level.

🎯 What Is NASAA?

NASAA is a voluntary association of state, provincial, and territorial securities regulators in the United States, Canada, and Mexico. In the U.S., its members include state securities administrators from all 50 states, Washington, D.C., and U.S. territories.

NASAA’s mission is to protect investors from fraud and ensure fair, efficient markets through state-level oversight.

🧾 How NASAA Sets Licensing Standards

1️⃣ Develops Exam Content and Policy

NASAA creates and maintains the content outlines for:

• Series 63 (Uniform Securities Agent State Law Exam)
• Series 65 (Uniform Investment Adviser Law Exam)
• Series 66 (Uniform Combined State Law Exam)

The exams test knowledge of the Uniform Securities Act, ethical standards, and fiduciary obligations.

2️⃣ Collaborates with FINRA for Exam Administration

While FINRA administers the exams, NASAA:

• Designs the questions
• Updates exam structures and scoring standards
• Reviews feedback from states and the industry to keep content relevant

3️⃣ Provides Model Rules for State Adoption

NASAA publishes model rules and policies, which states may adopt to regulate:

• Investment adviser registration and recordkeeping
• Broker-dealer supervision
• Unethical business practices
• Continuing education for investment professionals

States can adopt, modify, or reject these standards based on local legislation.

4️⃣ Offers Regulatory Guidance

NASAA issues interpretive releases, enforcement notices, and investor education materials to promote consistent practices among state regulators.

🧠 Why This Matters for Your Exam

• Questions often reflect NASAA’s model rules, even if not adopted verbatim by every state
• Knowing NASAA’s role and authority helps you answer questions on regulatory structure, disciplinary actions, and licensing requirements
• NASAA standards shape how states register firms, review disclosures, and enforce compliance

🚀 Want to Master NASAA-Based Exam Content?

Access full prep for Series 63, 65, and 66 exams—featuring NASAA-based rule walkthroughs, licensing scenarios, and updated question banks.

👉 https://finra-exam-mastery.com

Prepare smarter. Pass faster. Understand regulation with confidence.