SEC Staff and North American Securities Administrators Association to Explore Means to Improve Cooperation
Joint Initiative Will Develop Best Practices for Coordination of Federal and State Enforcement Activities
Washington, D.C. (September 14, 2003) — Securities and Exchange Commission Chairman William H. Donaldson and NASAA President Christine A. Bruenn today announced a joint initiative to address issues of coordination and cooperation between federal and state securities enforcement authorities. The initiative will focus on enforcement activities relating to regulated entities, such as broker-dealers and mutual funds, and will explore protocols, procedures and best practices for facilitating cooperation and coordination of such federal and state activities.
Chairman Donaldson said, “Investors will benefit from better coordination between federal and state regulators. By working toward a systematic protocol that will allow us to maximize our collective resources, we can be more effective at pinpointing and addressing the fraud and abuse we’ve seen in our securities markets over the past few years. Additionally, we can do a better job of ensuring consistency in our laws and regulations affecting the securities industry.”
President Bruenn said, “This initiative formalizes the long-standing complementary working relationship between state and federal securities regulators. It should lead to more effective and coordinated efforts in significant enforcement actions.”
Pursuant to the joint initiative, a working group consisting of six representatives of the Commission staff and six representatives of NASAA will be convened to study and propose ways to improve federal and state cooperation in significant enforcement activities affecting the regulated community.
Among the goals of this joint effort are to foster the efficiency of the national markets by promoting federal and state communication. Enhanced communication should result in greater coordination and consultation between federal and state regulators undertaking enforcement activities that may potentially impose requirements on the regulated community outside a single state. Enhanced communication will also assist in building regulatory consensus regarding enforcement remedies.
For More Information:
Bob Webster, Director of Communications