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Secretary of State Says New Financial Reform Bill Helps States Protect Investors
Posted Date: 7/21/2010
FOR IMMEDIATE RELEASE
Contact: Pam duPré
(775) 684-5748
pdupre@sos.nv.gov

(Carson City, NV; July 21, 2010) – Secretary of State Ross Miller said the financial reform bill signed into law today will help his Securities Division better protect Nevada investors.

The bill gives states the authority to oversee investment advisers who manage funds up to $100 million. Previously, investment adviser firms that managed more than $25 million were regulated by the federal Securities and Exchange Commission (SEC).

“State securities administrators will be in a much better position to audit and oversee these small to medium-sized investment advisers,” Secretary Miller said. “Now the federal government can focus more on the largest advisers and do a better job of preventing billion dollar schemes that wreak havoc on the economy.” It’s estimated the Secretary of State’s Securities Division will oversee an additional 20 to 30 investment adviser firms depending on the final rules promulgated by the SEC.

The new reform bill also requires the SEC to write rules to prohibit so-called “bad boys”, or individuals guilty of securities fraud, from selling unregistered securities under the “Regulation D” exemption. Once final, the new rule will further enable the Secretary of State’s Securities Division to help prevent Nevadans from becoming victims of securities fraud.

State securities regulators will now also have a seat on the federal oversight council that will identify risks to the nation’s financial stability and promote greater discipline in the financial markets.

“From the states’ perspective, this bill gives us greater ability to help protect the Main Street investor and gives the feds more freedom to keep an eye on the huge investment firms and big banks on Wall Street,” Secretary Miller said. “We need a financial environment in this country that still allows investors to take risks in a free market economy and yet doesn’t encourage the reckless behavior that could lead us once again to the brink of financial collapse.”

As co-chair of the National Association of Secretaries of State Securities Committee, Secretary Miller convened a hearing with Secretary Delbert Hosemann, Jr. of Mississippi on the Allen Stanford fraud case that resulted in a series of recommendations to Congress and a NASS-approved resolution regarding state and federal regulation of securities.
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