NASAA’s Proposal to Limit ‘Advisor’ Title Faces Pushback
Groups like LPL Financial and SIFMA say the rule conflicts with the Regulation Best Interest framework.

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And you call yourself an advisor?
Disclosure and transparency are top priorities for financial regulators, and professional titles are now attracting plenty of attention. The North American Securities Administrators Association wants to limit who can use the title of “advisor” and recently wrapped up a public comment period on the proposal. The oldest international investor protection organization said in November that broker-dealers and agents who use the designation are acting unethically and could be misleading investors regarding what services they actually provide. The securities regulators proposed in 2023 that only registered fiduciaries should be allowed to call themselves advisors.
More recently, top industry firms laid out their arguments for or against the proposal. So, where are we now?
A Rose by Any Other Name
After the NASAA wrapped its final request for comment in December, the proposal is facing strong pushback. Opponents argue the update goes beyond the scope of standards established by the Securities and Exchange Commission, especially when it comes to licenses.
The proposal received more than 630 comments with some experts saying the language is too narrow and could create confusion with the SEC’s Regulation Best Interest framework and state-specific rules:
- LPL Financial recommended NASAA amend the guidance to clarify that it does not apply to “associated persons of a broker-dealer who are supervised persons.”
- The Securities Industries and Financial Markets Association also suggested NASAA instead use language similar to that found in rules adopted by Washington, Texas, and Florida. The trade group argued those states’ rules fall more in line with Reg BI.
“A more straightforward approach would be preferable because it would lead to greater uniformity among both states that adopt the model rule and states that adopt their own separate rules,” SIFMA said in a comment letter.