NASAA Leaders Address National Conference of State Legislatures

WASHINGTON, D.C. (August 6, 2007) —North American Securities Administrators Association (NASAA) President Joseph P. Borg and President-elect Karen Tyler represented state securities regulators at the National Conference of State Legislatures’ (NCSL) 2007 Strong States Strong Nation Legislative Summit in Boston.

In testimony before the NCSL’s Communications, Financial Services and Interstate Commerce Committee, Borg, Director of the Alabama Securities Commission, said NASAA is pleased that the NCSL’s policy statement on State Sovereignty in Financial Services opposes federal preemption of state securities laws and regulations. Noting that NCSL has specific policy statements for banking and insurance regulation, Borg suggested the organization adopt a specific securities regulatory policy statement as well.

“I believe it crucial for the NCSL to send a more direct message to the U.S. Congress and the federal financial service regulators that the international competitiveness of our capital markets is, of course, important to maintaining America’s economic leadership in the world,” Borg said. “But, rolling back a system of regulation that has vigorously protected U.S. investors for decades could have profound and costly consequences if it went too far. History does repeat itself when its lessons are forgotten or ignored.”

Borg also pointed out that there are a number of bills moving through the state legislatures dealing with variable annuities, tenancies in common, naked short selling, the uniform securities act, and financial education that will have a profound effect on NCSL members’ constituents. “We welcome the opportunity to provide the state securities perspective on these issues as this Committee explores these and all securities related matters,” he said.

In a separate presentation, Borg outlined NASAA’s concerns with stranger-originated or stranger-owned life insurance (STOLI), which allows investors to purchase life insurance policies as an investment.

Tomorrow, North Dakota Securities Commissioner Tyler will outline the key role state securities regulators serve in delivering investor education through their jurisdictions. Tyler said her presentation will outline NASAA’s “lifecycle” approach to investor education, with programs addressing youth financial literacy; investors saving for retirement or other long-term goals; and senior investors, who are increasingly at risk from financial predators.

“State securities regulators have an on-going obligation to ensure that our constituents, no matter what their age, are equipped with the knowledge they need to make good financial decisions and to recognize and avoid financial fraud,” Tyler said. “The ability to make good financial decisions ultimately impacts the economic health of our families, our communities, our state and this country overall.”

NASAA is the oldest international organization devoted to investor protection. Its membership consists of the securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, the provinces and territories of Canada, and Mexico. NCSL is a bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories.

For more information:
Bob Webster, Director of Communications

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