Final answer:
The NASAA and the SEC differ in their handling of discretionary authorization by IAs, with NASAA requiring specific recordkeeping practices for discretionary accounts and prior written authorization, in contrast to the SEC's broader focus on fiduciary duties.
Step-by-step explanation:
One respect in which the North American Securities Administrators Association (NASAA) treats the handling of discretionary authorization by an Investment Adviser (IA) differently than that of the Securities and Exchange Commission (SEC) is that NASAA requires specific recordkeeping practices for discretionary accounts that may not align with the SEC requirements. NASAA emphasizes that prior written discretionary authority must be provided except in cases where discretionary power is exercised for a limited time. In contrast, the SEC often focuses on broader fiduciary responsibilities and has different standards for disclosure and prior consent. It is important for an IA to be familiar with both sets of regulations and ensure compliance with the specific requirements of their governing bodies.