State Securities Regulators Step Up Enforcement
The association of state securities regulators reported a 51% increase in the number of enforcement actions filed by state regulators in 2010 over the prior year and a 200% increase in funds ordered returned to investors. In a survey of its members, the North American Securities Administrators Association said that securities regulators launched 3,475 enforcement actions following 7,063 investigations and ordered $14.1 Billion returned to investors. NASAA also reports that its members revoked over 3,000 IA and BD licenses in 2010.
OUR TAKE: The state securities regulators have flexed their regulatory and enforcement muscles in recent years in an effort to demonstrate that they can regulate the thousands of advisers that are soon to come under their jurisdiction as a result of Dodd-Frank. The new law requires that states demonstrate an active enforcement program.
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