NASS Resolution in Support of State Securities Regulation

Adopted February 2009 / Amended and Reapproved July 2014 

WHEREAS, the National Association of Secretaries of State (NASS) is an organization of member states that has consistently supported the need for strong, effective securities regulation; and 

WHEREAS, losses suffered in the financial markets can damage confidence in those markets, and can greatly harm small and retail investors; and 

WHEREAS, federal securities regulation has repeatedly proven to be insufficient to police the financial markets and protect investors; and 

WHEREAS, the state securities agencies have effectively filled the gaps left by other regulators and have energetically protected retail investors; and 

WHEREAS, NASS favors preserving a diversity of financial regulators, state and federal, that can act independently when such independence is warranted; and 

WHEREAS, the financial services industry may prefer for the regulatory authority of the states to be diminished or preempted because the states have regulated effectively and aggressively; 

THEREFORE, NOW BE IT RESOLVED that the National Association of Secretaries of State (NASS) urges that the United States Congress and the President of the United States maintain and enhance the ability of the states to protect the investors and consumers residing in their states taking no action that would jeopardize, diminish, or preempt the existing authority of the states to investigate and prosecute investment fraud and other illegal investment activities by broker-dealers, investment advisers, their agents and representatives, financial planners, and any other persons or entities, whether licensed or unlicensed, engaged in activities in connection with the offer and sale of securities within a state. 

BE IT FURTHER RESOLVED that a copy of this resolution shall be forwarded to each member of the United States congress and to the President of the United States. 

Adopted the 16th day of July 2014 

in Baltimore, MD 

EXPIRES: Summer 2019