The results from this year’s enforcement survey demonstrate that NASAA’s U.S. members continue to play a critical role in protecting investors and holding securities law violators responsible for the damage they cause to individual investors specifically and the the integrity of our capital markets.
2019 NASAA Enforcement Report Highlights
(Based on 2018 data.)
For more than 100 years, North American Securities Administrators Association (NASAA) members — state, provincial, and territorial securities regulators in the United States, Canada and Mexico — have cooperated and shared information with one another to fulfill their mission of protecting investors and ensuring the integrity of the securities markets.
As you look at the history of securities fraud, and peel the transactions down to the basics, the frauds all operate the same. Promoters claim to have the next new project – get in at the start, a secret process, inside information, no risk, promise high returns, or tout special skills all of which will make huge profits for those investors willing to take a chance.
In the last 100 years, scams may not have changed much— tell investors what they want to hear to convince them to part with their money—but the communications with investors has. In the past, communication about potential investments was in person, through newspaper advertisements, or through the mail. Investors had time to think through their investment decisions.
Today, everything is electronic allowing for instantaneous responses, and funds are transferred with a push of the button. There is no “cooling off” period now. If it sounds too good to be true, it probably is.
Regulators must keep up with the times, and as this report demonstrates, NASAA members stand ready to aggressively protect investors from fraud and police the integrity of our capital markets well into the 21st century.