State Securities Regulators Bringing More Enforcement Actions against Advisers

The North American Securities Administrators Association, the association of state securities regulators, released its 2011 enforcement survey, which showed a sharp increase in enforcement actions against investment advisers. According to the survey, state securities regulators brought 399 enforcement actions against advisers in 2011, nearly double the prior year’s total. The number of criminal cases brought by state regulators also increased significantly as did prison time. NASAA says that its members will target investment advisers with a focus on “compliance in the firms’ general business practices and advice to clients.” Mid-sized advisers (between $25 Million and $100 Million in AUM) had to transition to state registration pursuant to the Dodd-Frank Act.