10.16.25

Insurance Agents, Small RIAs Draw Most Fire From State Securities Regulators

by: Tracey Longo

Insurance agents and small registered investment advisors (RIAs) drew the most enforcement actions from state securities regulators in 2024, according to the North American Securities Administrators Association's (NASAA) 2025 Enforcement Report. Insurance agents were twice as likely as broker-dealers or RIAs to face violations, while small advisors — often lacking compliance resources — remained a key concern. Regulators opened 8,833 investigations and initiated 1,183 enforcement actions, yielding $259 million in fines and restitution. Fraud tied to digital assets, social media and AI-driven scams surged, with seniors heavily targeted. NASAA President Marni Rock Gibson warned that technology is amplifying traditional schemes and exposing compliance gaps across smaller firms.

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