[Rev. 6/29/2024 4:44:01 PM--2023]

CHAPTER 628A - FINANCIAL PLANNERS

NRS 628A.010        Definitions.

NRS 628A.020        Duties of financial planner.

NRS 628A.030        Liability of financial planner.

NRS 628A.040        Financial planner required to maintain insurance for liability or surety bond; exceptions.

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NRS 628A.010  Definitions.  As used in this chapter, unless the context otherwise requires:

      1.  “Client” means a person who receives advice from a financial planner.

      2.  “Compensation” means a fee for services provided by a financial planner to a client or a commission or other remuneration derived by a financial planner from a person other than the client as the result of the purchase of a good or service by the client.

      3.  “Financial planner” means a person who for compensation advises others upon the investment of money or upon provision for income to be needed in the future, or who holds himself or herself out as qualified to perform either of these functions, but does not include:

      (a) An attorney and counselor at law admitted by the Supreme Court of this State;

      (b) A certified public accountant who holds a certificate issued pursuant to NRS 628.190 to 628.310, inclusive; or

      (c) A producer of insurance licensed pursuant to chapter 683A of NRS or an insurance consultant licensed pursuant to chapter 683C of NRS,

Ê whose advice upon investment or provision of future income is incidental to the practice of his or her profession or business.

      (Added to NRS by 1993, 1372; A 1995, 1453, 1635; 1997, 530; 2001, 2256; 2017, 1796, 3476)

NRS 628A.020  Duties of financial planner.  A financial planner has the duty of a fiduciary toward a client. A financial planner shall disclose to a client, at the time advice is given, any gain the financial planner may receive, such as profit or commission, if the advice is followed. A financial planner shall make diligent inquiry of each client to ascertain initially, and keep currently informed concerning, the client’s financial circumstances and obligations and the client’s present and anticipated obligations to and goals for his or her family.

      (Added to NRS by 1993, 1372)

NRS 628A.030  Liability of financial planner.

      1.  If loss results from following a financial planner’s advice under any of the circumstances listed in subsection 2, the client may recover from the financial planner in a civil action the amount of the economic loss and all costs of litigation and attorney’s fees.

      2.  The circumstances giving rise to liability of a financial planner are that the financial planner:

      (a) Violated any element of his or her fiduciary duty;

      (b) Was grossly negligent in selecting the course of action advised, in the light of all the client’s circumstances known to the financial planner; or

      (c) Violated any law of this State in recommending the investment or service.

      (Added to NRS by 1993, 1372)

NRS 628A.040  Financial planner required to maintain insurance for liability or surety bond; exceptions.

      1.  Except as otherwise provided in subsection 2, a financial planner shall maintain insurance covering liability for errors or omissions, or a surety bond to compensate clients for losses actionable pursuant to this chapter, in an amount of $1,000,000 or more.

      2.  The provisions of subsection 1 do not apply to:

      (a) A broker-dealer or sales representative licensed pursuant to NRS 90.310 or exempt under NRS 90.320; or

      (b) An investment adviser licensed pursuant to NRS 90.330 or exempt under NRS 90.340 or 90.345.

      (Added to NRS by 1993, 1372; A 2017, 1796; 2021, 249)