NASAA issues legislative wish list

Defending state regulatory jurisdiction from pre-emption by the feds is the top priority for state securities regulators this year.

Defending state regulatory jurisdiction from pre-emption by the federal government is the top priority for state securities regulators this year, according to the 2008 legislative agenda issued today by the North American Securities Administrators Association Inc. in Washington.
Prohibiting mandatory arbitration clauses in securities contracts came in second on the list of 11 items, according to a statement from NASAA.
The association noted that last year Congress began holding hearings on prohibiting mandatory arbitration clauses, a proposal that NASAA supports.
In addition, “state securities regulators believe Congress should also review the manner in which arbitrations are conducted to determine if there is sufficient disclosure of potential conflicts by panel members,” NASAA said.
Other issues listed in NASAA’s legislative priority list are:
Increasing sanctions for financial crimes against seniors;
Including equity-indexed annuities as securities for regulatory purposes;
Upholding states’ roles in data security breach oversight;
Maintaining the Sarbanes-Oxley Act of 2002;
Increasing financial education;
Reinstating state authority over “Regulation D” private placement offerings for small cap securities;
Raising the wealth threshold for hedge fund investors;
Improving hedge fund transparency and reassessing whether public pension funds should continue to get exemptions that make it easier for them to invest in hedge funds; and
Reviewing pre-emption of state authority by federal banking regulators.