New Hampshire Senior Investor Protection
New Hampshire Governor Lynch Signs
Senior Investor Protection Legislation into Law
By: Renee Hall
On July 7, 2008, NH Gov. John Lynch signed into law HB 1274 making New Hampshire the first state to adopt provisions based on NASAA’s Model Rule on Use of Senior Certification and Professional Designations.
In our June 2008 Newsletter, we shared with you that The North American Securities Administrators Association (“NASAA”) released a new model rule adopted on March 20, 2008 intended to stop investment advisers and broker/dealers from misleading senior investors by using inappropriate designations.
The Model rule was promulgated by NASAA to be considered for adoption by the securities administrators in the 50 states, the District of Columbia, the US Virgin Islands, Canada, Mexico and Puerto Rico. As states adopt this model rule, the rule will prohibit the misleading use of senior and retiree designations by individuals while also providing a means for a securities administrator to recognize the use of certain designations conferred by accredited organizations.
Karen Tyler, North Dakota Securities Commissioner and President of the North American Securities Administrators Association (NASAA) commented that Washington and Virginia last month became the first jurisdictions to adopt rules based on NASAA’s model. Virginia’s rule went into effect July 1, 2008 and Washington’s rule will go into effect on July 20, 2008. Alabama, California, Florida, Missouri, Montana and North Dakota have begun the process to adopt rules based on the NASAA model, as noted by Ms. Tyler.
As we previous mentioned, Investment Advisor and broker/dealer firms will need to confirm that the designations used by their representatives are appropriate and conferred by accredited organizations before used by their representatives and on their business cards, stationary, advertising pieces, websites, etc.
Regulatory Compliance will continue to monitor adoption of the model rule as announcements are put forth by various states or the NASAA. In the meantime, firms should take a close look at the designation being used by the registered persons and ask questions if the requirements for obtaining or retaining the specific designation are not known to you. Firms should also pay attention to how such designations are being used by representatives, keeping in mind that they should not be used as a title or in a manner that appears to hold the rep out as having an expertise in an area not supported by his/her background or education.