NASAA Insight

Document Sample
NASAA Insight Powered By Docstoc
					                                                                                      Winter / Spring 2010

 NASAA Insight
 The Voice of State & Provincial Securities Regulation

 NASAA President to Financial Crisis Investigators:
 Preemption, Deregulation Contributed to Collapse
  NASAA President and Texas                                                       examine the causes of the crisis.
Securities Commissioner Denise Voigt                                                Crawford urged the Commission to
Crawford went before the Financial                                                consider how the aggressive investor
Crisis Inquiry Commission on Jan. 14                                              protection role of state securities
to testify that a series of actions by                                            regulators may be expanded
Congress and the courts to preempt                                                through the restoration of regulatory
the regulatory authority of state                                                 authority that was preempted by
securities regulators contributed to                                              the National Securities Markets
the ongoing financial crisis.                                                     Improvement Act of 1996 (NSMIA).
  “As the regulators closest to                                                     Calls for preemption of state
investors, state securities regulators                                            regulatory authority or for more
provide an indispensable layer of                                                 authority for self-regulatory
protection for Main Street investors,” NASAA President Denise Voigt Crawford      organizations “defy common sense,”
Crawford testified. “Our presence      testifies before the Financial Crisis      Crawford said. “The evidence clearly
did not contribute to the crisis;      Inquiry Commission on Jan. 14, 2010.       demonstrates that the state-federal
rather, the fact that our regulatory    Crawford’s testimony came during          regulatory structure actually works
and enforcement roles had been          the first public hearings held by the     for the investor,” she said.
eroded was a significant factor in the  10-member bipartisan panel since
severity of the financial meltdown.”    it was established by Congress to                                         See p. 4

 Fiduciary Duty Under Fire as Congress Considers Reform
   An investor’s right to have his or her best interest       NASAA President and Texas Securities Commissioner
put first when receiving investment advice from               Denise Voigt Crawford said.
stockbrokers and insurance agents emerged as a                  In February, NASAA, AARP and the Consumer
key battleground as the Senate Banking Committee              Federation of America held a news conference urging
prepared its package of regulatory reform proposals.          the Senate to resist industry pressure to weaken the
  Under intense lobbying from the brokerage and               fiduciary provisions of its reform package.
insurance industries, the Senate Banking Committee              The news conference prompted the national media
removed a provision from its regulatory reform package        to focus on the importance of the fiduciary issue for
that would have extended the fiduciary duty standards         investors. “Letting the SEC come up with a new fiduciary
of the Investment Advisers Act to all who provide             standard for brokers will likely mean a lighter standard
investment advice. The committee replaced its strong          that won’t match the accountability of investment
fiduciary proposal with a call for the SEC to conduct a       advisers,” Bloomberg News wrote. The New York
yearlong study of the matter.                                 Times explained that “over the years, it has become
  The reform proposals approved by the House Financial        more difficult for consumers to understand where their
Services Committee in December would require the              advisers’ loyalties lie, especially as the traditional stock-
SEC to write new rules extending a fiduciary standard         peddling brokers have started to look and act more like
to brokers. This approach, favored by the brokerage           financial advisers.” And Wall Street Journal columnist
industry, could likely produce a weaker fiduciary             Jason Zweig summed up the situation in a column
standard of care for brokerage firms.                         entitled “Brokers Win, Investors Lose Key Reform,”
  “NASAA’s focus remains unchanged. Brokers and               writing that the strong fiduciary proposal in the Senate
insurance agents who offer investment advice should           bill “appears to have been horse-traded away in a last-
meet the same standards as investment advisers,”              minute push to secure compromise.”
  From the Leadership

President’s Message: Denise Voigt Crawford
                            As the preeminent organization of securities                  What’s Inside
                          regulators, the North American Securities
                          Administrators Association (NASAA) has served as
                          a visible and proactive advocate for the regulatory
                          reforms necessary to strengthen investor protection.
                            I have addressed Congress, the media, federal
                                                                                       NASAA News
                          regulators and others involved in the policy-making          Roundup ......... 3
                          process to urge them to resist intense pressure
                          by financial services industry interests to weaken
                          regulatory reform legislation.                               NASAA’s FCIC
                            While “business as usual” has returned to Wall
                          Street, many Main Street investors continue to               Testimony ...... 4
struggle with the hardships created by the rampant risk-taking and large-
scale fraud that shook through financial markets last year. Congress must
not waste this opportunity to provide meaningful investor protection                   Update on
reforms.                                                                               Regulatory
   “The Wall Street Reform and Consumer Protection Act” approved by the
House of Representatives in December 2009, and “The Restoring American                 Reform ........... 6
Financial Stability Act of 2010” released in the Senate in March 2010, offer
a foundation for much needed reform of our financial services regulatory
structure. However, the influence of powerful special interests have chipped           Awards ........... 8
away some of the most significant investor protection provisions in both
bills. This is not the time for study and delay. Investor protection demands
action now!
  NASAA will continue to work with members of both the House and Senate
to ensure that the painful economic and financial lessons of the recent past
are not forgotten and allowed to be passed on to a future generation of

Executive Director’s Message: Russ Iuculano
                         The NASAA Corporate Office         of a three-month misinformation campaign by some in
                       remains committed to achieving       the broker-dealer and insurance industries, who were
                       President Crawford’s oft-stated      able to convince the committee to replace the original
                       goal of making our regulatory        language with an unnecessary yearlong study.
                       framework better for Main Street       Now that a bill is headed to the full Senate, NASAA
                       investors.                           members must all do their part to encourage their
                         The Senate Banking                 state representation in Congress to help us achieve
                       Committee’s approval on March        our shared goal of securing passage of meaningful
                       22 of Sen. Dodd’s 1,336-page bill    regulatory reform legislation.
                       in a 21-minute, partisan mark-         The NASAA Corporate Office has pledged to
                       up sets up a real battle over the    increase the flow of information to the membership to
                       details of the legislation as it     ensure each member jurisdiction is apprised of new
heads to the Senate floor.                                  developments.
  The Senate Banking Committee came under intense             State securities regulators have a long history of
pressure by financial services industry interests           serving as a forceful and unified voice on behalf of
who launched a full-scale campaign to weaken the            the investing public. The path of regulatory reform in
regulatory improvements necessary to strengthen             Congress presents us with both the challenge and the
investor protection. One of these improvements,             opportunity to acquaint our elected officials with what is
applying a fiduciary standard to financial professionals    at stake for Main Street investors and how the bill can
dispensing investment advice (see p. 1), was the target     be strengthened to serve their best interests.

  NASAA Insight Page 2
                                                                         NASAA News Roundup

Danger Lurks on                                          NASAA Meets the Press
Free Lunch Menu
NASAA, AARP Report Results of Program
Monitoring Senior Investment Seminars
   More than three-quarters of older Americans are
concerned that financial scams will damage their
retirement nest eggs or those of someone they know,
AARP and NASAA recently announced.
   In a survey released by AARP, Protecting Older
Investors: 2009 Free Lunch Seminar Report, 78
percent of Americans age 55 and over surveyed
indicated that they are very or somewhat concerned
about financial scams affecting them or someone they
know. Fraudsters commonly engage older individuals       NASAA President Denise Voigt Crawford is joined by
                                                         officials from the National Press Club following her
by soliciting them to attend free lunch or dinner        participation in the Press Club’s Newsmakers series,
seminars to learn more about investing in retirement.    which allows leading figures in public affairs to meet the
   Nearly 6 million Americans age 55 and older           press in Washington, D.C. During the event, President
have attended a free lunch or dinner in the past         Crawford urged Congress to stand firm in the face of
                                                         intense industry lobbying to dilute and derail financial
three years. For attendees of these free seminars,       services regulatory reform. Coverage of the event
the potential cost can be quite high. Of those who       appeared in The Washington Post, Dow Jones and the
attended a seminar, more than three out of four (78      Associated Press, among others.
percent) expected that the free financial seminar
would center on opportunities to learn more about
financial issues. However, once at the seminar, half
                                                         NASAA Announces IARD
said the presenter asked for personal information,
such as contact information or information about
                                                         System Fee Waiver
their finances. Nearly 40 percent reported that the      Ongoing Success of IARD System Allows
presenter tried to sell them financial products either   Waivers to Continue through 2010
during or after the seminar.                                NASAA recently announced it will waive the initial
   In response to such solicitations, AARP and           set-up and annual system fees paid by investment
NASAA launched the Free Lunch Monitor program in         adviser firms and investment representatives to
2008 to raise public awareness about the possible        maintain the Investment Adviser Registration
dangers of attending free lunch seminars. Program        Depository (IARD) system.
                                                            Denise Voigt Crawford, NASAA President and
participants also are encouraged to complete a
                                                         Texas Securities Commissioner, said, “The IARD
checklist after attending a seminar. After a year of
                                                         system promotes effective and efficient investor
collecting checklists, volunteers reported that many     protection through readily accessible disclosure of
seminars focused on different types of annuities,        important information to the public while at the
with 39 percent encouraged to purchase one, and          same time offering a consistent and streamlined
nearly half said that the speaker did not discuss the    registration process for investment advisers and
risks associated with the annuity. Attendees were        their representatives. Given the current economic
consistently promised that products were “low risk” or   climate, we are pleased that the IARD system’s
that they would yield “high rates of return.”            continued success will allow us to maintain the system
                                                         fee waivers put in place in 2005 for investment
   “Low risk, high reward is a red flag warning for
                                                         adviser firms and also to fully waive for a second
possible investment fraud,” said NASAA President and
                                                         year the system fees paid by investment adviser
Texas Securities Commissioner Denise Voigt Crawford.     representatives.”
“Defrauding our senior population is unconscionable         NASAA’s Board of Directors approved the system
and protecting senior investors is a top priority of     fee waiver and will continue to monitor the system’s
state securities regulators.”                            revenues to determine future fee adjustments.

                                                                                                NASAA Insight Page 3
FCIC Testimony

Behind the Crisis
                                                                                many state regulations and transferred
                                                                                significant enforcement responsibilities
                                                                                from the states to the federal
                                                                                government. NSMIA also prevented the
   NASAA President and Texas Securities Commissioner                            states from taking preventative actions
   Denise Voigt Crawford appeared before the Financial                          in areas that we now know to have
   Crisis Inquiry Commission to focus on the role of state                      been substantial contributing factors
   securities regulators in the current financial crisis,                       to the current crisis. One example
   and to provide the Commission with recommendations                           is private placement offerings made
   to enhance states’ ability to pursue financial fraud                         under Regulation D Rule 506.
   and prosecute the perpetrators of those crimes. The                             Private placements are exempt
   following is an excerpt. Full testimony is available at the                  from federal registration and for all
   NASAA website:                                                practical purposes exempt from federal
                                                                                oversight. While there may be federal
   By nature, we are the first          presumptive policy prescription;        requirements for private placements
line of defense for Main Street         indeed today, the sense is that the     to come within the scope of Rule 506,
investors and for us, enforcement       current crisis was deepened by          in reality there is no federal regulatory
is a top priority. Through the years,   excessive deregulation. Similarly,      enforcement. The SEC does not review
states have been the undisputed         the naiveté behind the view that        Form D filings and rarely investigates
leaders in criminal prosecutions        markets are always self-correcting      Rule 506 offers.
of securities violators because         now seems apparent. But clearly,           NSMIA’s preemption of state
we believe in serious jail time for     reliance by the investing public on     regulation of private placements,
securities-related crimes. We have      federal securities regulators, self-    therefore, created a regulatory black
successfully exposed and addressed      regulatory organizations (SROs) and     hole - today no one regulates these
the profound conflicts of interest      “gatekeepers” in the years preceding    offerings. The bottom line is that
among Wall Street stock analysts        the crisis (and in its very midst) to   NSMIA hampers the states’ ability
by requiring changed behavior. We       detect and prevent even the most        to investigate known securities
led all regulators on late trading      egregious of frauds and deceit was      law violators when they become
and market timing in mutual             equally naïve.                          participants in subsequent offerings.
funds. We address on a daily basis        The most obvious developments         We are constantly faced with playing
abusive sales practices especially      over the past 15 years
those targeting vulnerable senior       have been the rapid            As the regulators closest to investors,
investors.                              succession of market           state securities regulators provide an
   State securities regulators          scandals. These seem           indispensable layer of protection for
continue to lead the effort to ensure   disproportionate in            Main Street investors.
that investors receive redemptions      both frequency and
for their frozen auction rate           severity to prior
securities that were marketed as        periods in U.S. financial history. A    catch up and often the result is that
safe and liquid investments, an         consequence of these scandals has       new investors are harmed before we
effort that already has resulted        been that state regulators have         can investigate and take enforcement
in the largest return of funds to       become the dominant players in          action. Criminals have been given the
investors in history. In the last few   addressing many financial scandals.     upper hand and regulators are forced
years, state securities regulators        The National Securities Markets       to triage investor harm in a cycle that
have been at the forefront of           Improvement Act of 1996 (NSMIA)         plays out again and again.
investor protection. Our record         significantly impacted the role of        Also of note is that NSMIA, as
demonstrates clearly that we have       state regulators and enforcers in       originally conceived, stripped the SEC
the will and ability to regulate.       dealing with securities offerings and   of two Commissioners and 20 percent
   Deregulation is no longer the        professionals. NSMIA preempted          of its budget. Therefore it does not

  NASAA Insight Page 4
                                                                                                  FCIC Testimony

take an extreme cynic to view NSMIA’s preemption              August 7, 2008, when its enforcement chief announced a
primarily as deregulation, rather than a systematic           preliminary settlement with Citigroup compatible with the
apportionment of appropriate responsibilities between         agreements already reached with members of NASAA.
federal and state regulators. This politically driven reality    State securities regulators respond to investors who
lessens the temptation to view this issue as part of the      typically call them first with complaints or request
broader philosophical debate on federalism and the            information about securities firms or individuals.
recurring question of appropriate state and federal roles     They work on the front lines, investigating potentially
for securities regulation.                                    fraudulent activity and alerting the public to problems.
   Increasingly, state                                                                  Because they are closest to the
securities regulators have                                                              investing public, state securities
played a far more aggressive          Our presence did not contribute to                regulators are often first to
role in prosecuting systemic          the crisis; rather, the fact that our             identify new investment scams
securities fraud. State               regulatory and enforcement roles had and to bring enforcement actions
securities regulators were            been eroded was a significant factor in to halt and remedy a wide variety
ahead of the SEC in the               the severity of the financial meltdown. of investment-related violations.
investigation of securities                                                             The $61 billion returned to
analyst conflicts and “market                                                           investors to resolve the demise of
timing” in mutual funds. The same can be said for the         the ARS market is the most recent example of the states
Enron investigation, where the Securities Bureau of the       initiating a collaborative approach to a national problem.
New York Attorney General used New York’s unusually              The unique experiences of state securities regulators
flexible securities law to investigate the role of the        on the front lines of investor protection have provided
investment banks in the Enron fraud. Once again, state        the framework for my testimony. As the regulators
securities regulators were “out in front of” the SEC and      closest to investors, state securities regulators provide
the investigations by the New York Securities Bureau          an indispensable layer of protection for Main Street
created pressure on the SEC to act, which they did by         investors.
settling with the banks. Indeed, at the time of New York’s       As the Commission continues to examine the causes of
investigation, it was unclear whether the SEC intended to     our current financial crisis and develop recommendations
pursue the banks at all, let alone aggressively.              to prevent a reoccurrence, I respectfully suggest that
   More recently, state securities regulators have been the   the Commission consider how the role of state securities
most aggressive enforcers in the auction rate securities      regulators may be expanded through the restoration
cases, negotiating settlements with the major investment      of authority that was preempted over the past 14
banks totaling well over $150 billion. The New York           years. NASAA’s recommendations include: restoring
Securities Bureau reached the first settlements with the      state regulatory oversight of all Regulation D Rule 506
credit rating agencies. State securities regulators have      offerings; restoring certain provisions of the Glass-
also played a significant role in resolving similar cases.    Steagall Act; increasing state regulation of investment
   Not only have the state securities regulators frequently   advisers; establishing a Systemic Risk Council with
been first, they have been tougher. A recent study of the     state financial regulatory participation; deputizing state
restitution involved in mutual fund cases is particularly     securities attorneys to leverage talent and resources
revealing. It compares restitution in cases involving         in all jurisdictions and at the federal level; providing
both a state securities regulator and the SEC, with those     additional resources to uncover and prosecute securities
involving the SEC alone. The study concluded that the         fraud cases; conducting a thorough review of all civil and
cases with both “prosecutors” yielded considerably higher     criminal remedies to ensure that they more effectively
restitution ratios. It appears that, far from monitoring      deter misconduct; and reexamining and removing the
the securities markets and securities industry in order       hurdles facing private plaintiffs in private actions.
to detect and terminate abusive and illegal practices,           Our presence did not contribute to the crisis; rather,
the SEC was often prompted into action only after             the fact that our regulatory and enforcement roles had
state regulators had unearthed them. The SEC took             been eroded was a significant factor in the severity of the
no public action with respect to the ARS matter until         financial meltdown.

                                                                                                    NASAA Insight Page 5
 Regulatory Reform

 A Long and Winding Road
 Congress Inches Toward Financial Services Regulatory Reform
   The legislative battle over the restructuring of the      responsibility to a private membership organization
financial regulatory system in the United States has         amounts to an ‘outsourcing’ of a critical government
taken several twists and turns as it works its way through   regulatory obligation.”
Congress.                                                       As passed by the House, the “Wall Street Reform
   In December 2009, the U.S. House of Representatives       and Consumer Protection Act” recognized the investor
approved HR 4173, “The Wall Street Reform and                protection role of state securities regualtors by raising
Consumer Protection Act.” The legislation provides           the threshold for state-registered investment advisers to
meaningful investor protection reforms and acknowledges      $100 million from $25 million assets under management.
the important role of state securities regulators.             The sponsors of the bill also included a mandate that
   “The ‘Wall Street Reform and Consumer Protection Act’     investment advisers are “regulated and examined or
is an important step toward better protecting investors,”    required to be regulated and examined” by a state for
said Denise Voigt Crawford, NASAA President and Texas        the threshold to be raised in that state. The manager’s
Securities Commissioner. “NASAA commends the House           amendment added language to permit an investment
for putting the interests of Main Street investors ahead     adviser with AUM between $25 million and $100 million,
of Wall Street. We also applaud Representatives Barney       which registers with five or more states, to maintain its
Frank (D-Mass.) and Steve Cohen (D-Tenn.) for their          registration with the SEC.
leadership in successfully sponsoring a floor amendment         “The state system of investment adviser regulation
to strike the language that would have permitted FINRA       has worked well with the $25 million threshold since it
to regulate investment advisory activities of its broker-    was mandated in 1996,” Crawford said. “The states have
dealer members.”                                             developed an effective regulatory structure and enhanced
   The Cohen-Frank amendment stripped from the bill a        technology to oversee investment advisers. Increasing
provision that would have allowed the SEC to delegate        the threshold to $100 million would reduce the SEC’s
expanded supervisory responsibility to FINRA, the broker-    examination burden and allow the agency to focus on
dealer membership organization. This expanded authority      larger firms and other market issues.”
                                                               The House-passed bill also would create a Financial
                                                             Services Oversight Council. Through the efforts of
       NASAA commends the House for                          Chairman Frank and Reps. Paul Kanjorski (D-Penn.) and
       putting the interests of Main Street                  Dennis Moore (D-Kan.), a state securities regulator would
       investors ahead of Wall Street.                       serve as a nonvoting member of the Council. Language
                                                             also was added to clarify that the nonvoting members
                                                             will be included in all Council meetings, proceedings,
would have incorporated oversight of the investment          discussions and deliberations. “The responsibility of
advisory activities of FINRA’s current member firms.         identifying and managing systemic risk should not be
  “This rulemaking authority potentially could have          assigned to a single agency, but instead should be the
been used by FINRA to weaken the fiduciary duty              responsibility of a council comprised of state and federal
requirements of its membership under the guise of a          regulators,” Crawford said. “Because we are closest
‘harmonized’ fiduciary standard,” Crawford said. “NASAA      to the investing public, state securities regulators are
remains opposed to any effort to expand the jurisdiction     often first to identify new investment frauds and to bring
and authority of private membership organizations            enforcement actions to halt and remedy a wide variety of
into an area that is more appropriately the province of      market-wide investment-related violations.”
government. For decades the regulation of investment            In recognition of the effectiveness of state securities
advisers has been the responsibility of state and federal    regulators, language was added to the bill’s provisions
governments, both of which are transparent and               concerning the creation of a Consumer Financial
accountable to the investing public. Extending this broad    Protection Ageny that specifically excludes state-

 NASAA Insight Page 6
                                                                                       Regulatory Reform

registered investment advisers from the oversight of the       century solution for today’s financial services regulatory
CFPA. Also, a savings clause was added to clarify that         structure, Chairman Dodd has offered a mixed bag of
all federal and state securities activity is excluded from     proposals that, in some cases, substitute accountability
the jurisdiction of the CFPA. “There was no rationale for      and protection with delay and dilution of the protections
differentiating the SEC’s jurisdiction from that of state      Main Street investors deserve immediately,” Crawford
securities regulators,” Crawford said. “State jurisdiction     said.
in this context is complementary but not overlapping and         In particular, Crawford expressed NASAA’s profound
we are pleased that our concerns were addressed in the         disappointment that the new bill removed the single most
approved legislation.”                                         important protection for individual investors – requiring
   Chairman Frank’s Manager’s Amendment to H.R. 4173           that stockbrokers and insurance agents providing
also included language that creates an Office of Financial     investment advice act in the best interest of their clients.
Protection for Older Americans within the Consumer             “This long overdue requirement has been replaced by an
Financial Protection Agency. The function of this office       industry-supported yearlong study. Instead of offering
is to facilitate the financial literacy of individuals age 62  protections, the reform package offers delay in the
and older to help protect them from unfair and deceptive       form of yet another study. Investors, particularly senior
practices and educate them on their financial choices.         investors, need help and clarity now,” she said.
This office is directed to coordinate consumer protection         Echoing President Crawford’s remarks, The New York
efforts with other federal and state regulators.               Times wrote: “When in doubt, conduct a study. That, in
  The Senior Investment Protection Act, which is based on short, is the regimen prescribed by both the House and
adoption of NASAA’s senior designation model rule, was         the Senate bills proposing a regulatory overhaul of the
incorporated into the bill passed                                                                   banking and financial
by the House and also has been                 Powerful interests in the financial                  industries. Rather than
included in the Senate regulatory              services industry have aligned to delay,             immediately putting
reform bill.                                   derail and distort the regulatory changes in place regulatory
   Indeed, many of the provisions              to the status quo that are necessary to              fixes for some of
that NASAA advocated were                      strengthen investor protection.                      the problems that
included in a discussion draft                                                                      contributed to the
issued by Senate Banking Chairman Christopher Dodd             financial crisis, the two bills each call for dozens of
(D-Conn.) in November 2009. As expected, the draft             studies that will effectively delay for up to two years the
Senate proposals came under serious attack by industry         possibility of addressing those problems through new
lobbyists.                                                     laws or industry regulations.”
   In response to the resistance to the discussion draft by       In another area where immediate action is needed,
committee Republicans and some Democrats, Chairman             NASAA encouraged the committee to return to the states
Dodd began negotiations with committee members from            the full authority to review private placement offerings
both parties.                                                  made under SEC Rule 506 of Regulation D.
   NASAA urged members of Congress to resist intense             “In its current form, the Dodd bill only provides states
pressure by financial services industry interests to           the ability to review certain Form D filings in those
weaken the regulatory improvements necessary to                cases where the SEC does not perform its own review
strengthen investor protection.                                within 120 days,” Crawford said. “While this provision
  “Powerful interests in the financial services industry       attempts to remedy the current situation in which there
have aligned to delay, derail and distort the regulatory       is essentially no federal or state regulation for private
changes to the status quo that are necessary to                placements, it is a disappointment for the investing
strengthen investor protection,“ Crawford said at a            public and deserves more meaningful and substantive
National Press Club Newsmakers event in December.              consideration.”
“While high times may have returned to Wall Street,               Crawford added that NASAA “continues to look forward
hard times persist on Main Street. Congress must not           to working with the House and Senate as they move
squander this opportunity to provide meaningful investor       forward toward our shared goal of protecting our nation’s
protection reforms.”                                           investors and restoring their faith and confidence in
   In March, Chairman Dodd unveiled his revised                financial regulators and markets alike.”
regulatory reform package. Many of the strong provisions         Meanwhile, industry lobbyists are expected to continue
from the draft proposal were rewritten. “In seeking to         their assault as reform proposals move slowly through
gain bipartisan support for his vision of creating a 21st      the political process and toward the president’s desk.

                                                                                                     NASAA Insight Page 7
                                 NASAA: Because Every Investor Deserves Protection
About Us
   The North American                           North American Securities
Securities Administrators                       Administrators Association
Association (NASAA) is a                        750 First Street NE
voluntary association of                        Suite 1140
securities administrators in                    Washington, D.C. 20002
the 50 states, the District of
Columbia, Puerto Rico, the
U.S. Virgin Islands, Canada
and Mexico.
   Organized in 1919,
NASAA is the oldest
international organization
devoted to investor
   As the preeminent
organization of securities
regulators, NASAA is
committed to protecting
investors from fraud and
abuse, educating investors,
supporting capital formation
and helping ensure the
integrity and efficiency of
financial markets.

    Contact NASAA
                                  NASAA Awards
Phone: 202-737-0900
Fax: 202-783-3571
                                  NASAA Honors Members for
    Visit Us Online               Outstanding Service to Investors
                                    NASAA recently recognized                Cole, Bill Donahue, Zesley Haislip,
                                  several individuals within member          Judi Lahr, Jennifer Monopoli, Jim Nix,
                                  jurisdictions for their outstanding        Jerry Rome, Nathan Soendker and
Stay Informed                     service to investors.                      MaryBeth McWilliams.
  Keep up with the latest           During the 2010 Winter                     During the 2009 NASAA Investor
NASAA developments by             Enforcement Conference, Kevin              Education Training Seminar, Andrew
subscribing to the NASAA          Anselm of Oregon was presented             Roth of California and Gena Wilimitis
E-mail Update Service.            with the NASAA Distinguished               of New Mexico were presented with
                                  Service Award for her leadership on        NASAA’s Distinguished Service Award
  This free resource is
                                  the negotiating team that led to a         in Investor Education. Roth was
available on the homepage         settlement with Prosper Marketplace        recognized for his leadership on the
of the NASAA website at           Inc.                                       NASAA IE Section Rapid Response                      Several members also were                team, while Wilimitis was honored
                                  presented with NASAA’s Outstanding         for her service on the Affinity and
                                  Team Service Award for their efforts       Military Outreach Project group and
NASAA Insight is a                on the Auction Rate Securities Task        for her efforts on behalf of investors
quarterly publication of the      Force, which resulted in the largest       in New Mexico, specifically frequently
North American Securities         return of funds to investors in history.   victimized populations including
                                    They include: Cheryl Farson,             religious groups, women in transition
Administrators Association.
                                  Arizona; Ronak Patel, Texas; and           and Native Americans.
                                  Peter Dean, New York.                        Awards from NASAA’s Investor
                                    In addition, special recognition         Education Presentations Outreach
                                  was awarded to task force members:         program were presented to Illinois
                                  Pat Ahearn, Angela Angelakos, Peter        and West Virginia.

Shared By: