WASHINGTON (June 7, 2002) — “At a time when investor complaints are up and confidence in our markets is down, we trust that this reorganization will have no negative impact on the National Association of Securities Dealers` commitment to investor protection,” said Marc Beauchamp, executive director of the North American Securities Administrators Association. “NASAA and the states have had a close working relationship with Mary Schapiro and her team at NASD Regulation and we expect that cooperation to continue.

“We`re encouraged that the NASD board recently approved the hiring of 60 new enforcement staff and that the NASD plans additional new rules covering investment analysts. Our securities markets are the fairest and most trusted in the world, in large part because of our unique complementary system of regulation, consisting of the Securities and Exchange Commission, the self-regulatory organizations and the states.”