NASAA's 2008 Legislative Agenda
On January 30, 2008, the North American Securities Administrators Association Inc. (NASAA) released a list of 11 "pro-investor legislative priorities" that it plans to support this year.
Investment News journalist Bruce Kelly reported that “state securities regulators are worried that the recent emphasis on making U.S. capital markets more competitive could lead to the pre-emption of their power by federal regulators.” Thus, NASAA’s first priority is to “support a strong and effective regulatory structure for capital markets."
NASAA's second priority is to "restore fairness and balance in the securities arbitration system."
NASAA’s evaluation of the arbitration system included a request for Congress to review "the manner in which arbitrations are conducted, [and] to determine if there is sufficient disclosure of potential conflicts by panel members." The selection, qualification and composition of the panels will also be reviewed to ensure “it is fair and transparent to all.”
NASAA also wants a review of the adequacy of arbitrator training—whether the explanations of awards are sufficient, whether the system is fast and economical for investors, and whether the arbitration process should be optional instead of mandatory for investors.
NASAA’s third priority involves tougher sanctions on those who defraud seniors. A preliminary survey conducted by NASAA reveals that almost half the complaints involved seniors.
"Fraudulent investment sales to seniors will remain a problem of epidemic proportions as long as the benefits to the perpetrators outweigh the costs," NASAA said. "Enhanced penalties for senior abuse — ranging from fines to jail terms — should help to raise those costs, deter law violations and punish appropriately those who exploit senior investors."
Although the 11 initiatives were created to protect investors, NASAA is bent on defending its own authority as well as responding to claims of burdensome regulations.
