State Investment Adviser Exams Reveal Significant Deficiencies

The results of coordinated state examinations of investment advisers in the first half of 2011 by the North American Securities Administrators Association (NASAA) reveal significant deficiencies in a broad range of areas.  As investment advisers gear up nationally to register either with their state or the SEC in 2012, these results are important road maps of common pitfalls which investment advisers will need to address in their compliance programs going forward.  Additionally, investors performing due diligence on advisers certainly should take note of these findings.