The North American Securities Administrators Association announced that its membership has approved a new model rule prohibiting the misleading use of senior and retiree designations.

The model rule prohibits the misleading use of senior and retiree designations while also providing a means by which a securities administrator may recognize the use of certain designations conferred by an accredited organization.

“We detected a growing problem for senior investors and have responded to it aggressively with a regulatory solution. I urge all NASAA members to adopt this model rule within their jurisdictions as soon as possible,” said Karen Tyler, North Dakota Securities Commissioner and president of NASAA.

Tyler said NASAA’s model rule effort was launched in 2003 to focus national attention on unscrupulous behavior targeting senior investors. The proposed rule was released for public comment in November 2007.

The model rule is intended to address the growing use of financial designations or certifications that ostensibly convey expertise in advising seniors and retirees. “Investors often have insufficient information when trying to determine whether so-called ‘senior designations’ represent meaningful educational achievement by the salesperson, or are merely marketing tools,” said task force chair and Maryland Securities Commissioner Melanie Lubin.