NASAA Statement on Senate Financial Services Regulatory Reform Proposal

WASHINGTON (November 10, 2009) – The following is a statement from Denise Voigt Crawford, President of the North American Securities Administrators Association (NASAA) and Texas Securities Commissioner, based on a preliminary analysis of the financial services regulatory reform proposal released today by Senate Banking Committee Chairman Christopher Dodd.

“The comprehensive proposals offered by Chairman Dodd will help usher in a new era of protection for millions of Main Street investors. The Senate reform proposals announced today are a very positive step in the right direction toward restoring the accountability and responsibility that are required to strengthen investor protection and rebuild confidence in our nation’s financial markets and their regulators.

“The discussion draft contains several key elements long advocated by NASAA and recognizes the valuable investor protection role served by state securities regulators, including increasing state regulatory responsibilities concerning oversight of investment advisers and offerings made under SEC Regulation D, Rule 506. The proposals also would require that brokers providing investment advice be held to the same fiduciary standard as investment advisers; would enhance the protections of senior investors; and would give the SEC the authority to ban mandatory predispute arbitration in securities cases.”

“State securities regulators commend Sen. Dodd for this thoughtful and well-crafted approach to regulatory reform and look forward to working with the Senate Banking Committee to ensure passage of the strongest possible protections for our nation’s investors.”

For more information:
Bob Webster, Director of Communications
202-737-0900

2009 Headlines, Newsroom