Report Documents Largest Coordinated Event Between State and Federal Securities Regulators
WASHINGTON (May 20, 2013) – The North American Securities Administrators Association (NASAA) today released a report documenting the successful completion of the transfer of mid-sized investment advisers from federal to state oversight as called for by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
“This report details the history of the IA switch and the accomplishments of NASAA members and staff to ensure that the largest coordinated regulatory event between the states and the SEC was accomplished successfully,” said Heath Abshure, NASAA President and Arkansas Securities Commissioner.
The report is available on the NASAA website, here.
The Switch stemmed from Section 410 of the Dodd-Frank Act, which raised the assets under management threshold for state regulation of investment advisers from $25 million to $100 million. The implementation of the Switch took place over the course of nearly three years following the passage of the Dodd-Frank Act, leveraging the capabilities of state securities regulators in overseeing investment advisers.
“The regulatory transfer of more than 2,100 investment advisers from federal to state oversight was one of the most significant achievements in NASAA’s history,” Abshure said,.
Currently, states oversee approximately 17,350 investment adviser firms with assets under management of about $269 billion, while the SEC has regulatory responsibility for about 10,540 investment adviser firms.
“The Switch represents a good example of how state and federal securities regulators can and do collaborate, and I commend both state securities administrators and staff, and the staff of the Securities and Exchange Commission for working together to provide investors with stronger investment adviser oversight,” Abshure said.
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Bob Webster | Director of Communications
— NASAA —