NASAA Surveys Investment Adviser Representatives on Proposed Competency Examination

Washington, DC, March 20, 1998 - In April 1997, the states' securities regulators entered into a Memorandum of Understanding ("MOU") relating to the regulation of state-registered investment advisers and investment adviser representatives. Included in this MOU is the following:

[The North American Securities Administrators Association ("NASAA")] shall develop and make available to its members an exam to test the subject matter knowledge and competency of state-registered investment adviser representatives. NASAA shall also urge its members to implement the exam and require passage as a requirement of being licensed as an investment adviser representative. The exam shall mandate a minimum degree of competency. . .

In furtherance of this undertaking, NASAA has retained the Chauncey Group, International to develop the competency examination. The Chauncey Group has developed a "Survey of Tasks and Knowledge Areas for the Investment Adviser Representative," which it sent last week to a random sampling of 4,000 state-registered investment adviser representatives. Responses have been requested by the end of this month. Responses to the survey are to be based not on the responder's "own job or work situation, but rather [on] what [the responder] believes all entry-level Investment Adviser Representatives should know and be able to do . . ."