In his inaugural speech as President of the North American Securities Administrators Association (i.e. state securities regulators), Jack Herstein of Nebraska dedicated NASAA to fighting for increased state regulatory authority in the face of federal preemption.  He declared, “I will focus on ensuring that state regulatory authority is preserved.  As we have seen since NSMIA, our authority has been under attack. We will continue to fight each attack and defend the regulatory authority of NASAA members.”   He also blamed NSMIA (National Securities Markets Improvements Act, passed in 1996), which limited state review of securities offerings, for creating a “regulatory black hole.”  Mr. Herstein also advocated for a national fiduciary standard for brokers and adequate SEC funding. 

 

OUR TAKE: We thought the job of NASAA and its constituent members was to protect investors, not defend the states’ regulatory authority.  While we believe the state regulators (particularly in states with adequate examination programs) serve a very relevant function, we do not advocate a return to the bad old days before NSMIA when issuers had to weave through 50 statutes and regulators to offer their securities.