Page 4 - 2013_2014 NASAA report

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In Pursuit of Smart Regulation

Investor widely praised for their innovative use of technology to deter

investment fraud and support forensic investigations.
Confidence
Protecting Investors
NASAA members throughout North America focus on
Demands Smart protecting retail investors, especially those who lack the

expertise, experience, and resources to protect their own
interests. By serving as a strong frst line of defense for
Regulation & investors, NASAA members strive to provide a level of
confdence needed to foster strong capital markets.
NASAAs 2013 Enforcement Report sheds light on the
Investor Protection investor protection role served by NASAA members.
Te report, based on 2012 data, revealed several important
trends in investor protection and securities regulation,
NASAA members have protected Main Street investors for including continued investor reliance on state regulators to
more than 100 years, longer than any other securities regulator. address both traditional areas of securities fraud and emerging
issues.
Tey are responsible for enforcing state and provincial
For example, in the wake of the IA switch, where about
securities laws by pursuing cases of suspected investment fraud,
conducting investigations of unlawful conduct, licensing frms 2,400 investment advisers transitioned from federal to
and investment professionals, registering certain securities state registration as mandated by the Dodd-Frank Act,
oferings, examining broker-dealers and investment advisers, state regulators took important action to remove or bar
and providing investor education programs and materials to unscrupulous actors from the licensed community. A total of
citizens in their jurisdictions. 3,564 licenses were withdrawn due to state action (an increase
of 27 percent over the previous reporting period), and 736
In the United States, state securities regulators are the
licenses were denied, revoked, suspended or conditioned.
undisputed leaders in criminal prosecutions of securities
violators. Notably, many of the cases handled by state regulators
In Canada, provincial and territorial securities regulators are originated from federal exemptions that preempt state review.
Regulation D oferings, for example, were the
State Enforcement Statistics at a Glance most common product involved in schemes
Complaints Fielded by Regulators 10,272 reported by the states. Other leading products
involved in enforcement actions brought by state
securities regulators include oil and gas oferings
Investigations 5,865 and real estate investments.
Enforcement Actions 2,496 According to the 2013 enforcement report
(administrative, civil, and criminal) by the Canadian Securities Administrators,
Investor Restitution Ordered $694 million NASAA members in Canada concluded 133
cases against 216 individuals and 166 companies.
Cases concluded resulting in fnes and
Fines, Penalties, and Costs $157 million administrative penalties of $35.4 million; almost
Assessed $55 million in restitution, compensation and
disgorgement; and jail sentences handed down to
Jail Time Sentenced 1,361 Years eight individuals.

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