NASAA Statement on the Investor Protection Act

WASHINGTON (November 4, 2009) — The following is a statement by NASAA President and Texas Securities Administrator Denise Voigt Crawford in response to the vote today by the House Financial Services Committee to report the Investor Protection Act to the House of Representatives.

NASAA appreciates the Committee’s efforts to strengthen investor protection. While we continue to have concerns over certain aspects of the Investor Protection Act that will not serve investors, we look forward to working with the Committee in its efforts to strengthen the financial services regulatory framework and provide the best possible protections for American investors.

State securities regulators also appreciate Chairman Frank’s concern over the far-reaching consequences of an amendment introduced by Ranking Member Spencer Bachus to provide the SEC with the authority to empower FINRA to enforce the fiduciary duty provisions in the Investment Advisers Act against not only broker-dealer members but also any affiliated investment advisory firm or any associated person. The amendment would give FINRA sweeping rule-making authority without any meaningful analysis or study of its implications. NASAA remains opposed to any effort to expand the jurisdiction and authority of private, membership organizations into an area that is more appropriately the province of government.

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

2009 Headlines, Newsroom