State financial advisor exams uncovered 83 percent fewer instances of “unethical practices” this year than in 2011, but overall deficiencies were up, according to the North American Securities Administrators Association (NASAA).

Deficiencies in the “unethical practices” category were found in 6.2 percent of inspections this year, according to an inspection report released by the Nasaa today.

Since 2011, financial advisor exams by state regulators rose 37 percent to 1,130 from 825, according to the report. The number of deficiencies found climbed 83 percent, to 6,482 from 3,543.

The number of lapses found in an average exam climbed almost a third during that period, to 5.7 from 4.3.

The report did not specifically state the type of deficiencies that fall under the “unethical practices” category. Nassa officials were unavailable for comment.

Supervision deficiencies were found in 16.7 percent of exams during 2013, almost half of the 30.2 percent two years earlier.

The top two deficiency categories for both years remained “books and records” and “registration,” the latter of which was cited as a problem in 68.2 percent of exams in 2013 against 45 percent in 2011, a 51.5 percent increase.

The lion’s share of books and records lapses for 2013 was in suitability documentation, missing client contracts and trial balance and financial statements.

In the two years, the percentage of advisors examined who only had financial planning clients nearly doubled to 11.9 percent from 5.8 percent.

The share affiliated with broker-dealers dropped from 18.8 percent to 16.2 percent.

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