[Congressional Record Volume 165, Number 114 (Tuesday, July 9, 2019)]
[House]
[Pages H5280-H5282]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EMPHASIZING IMPORTANCE OF GRASSROOTS INVESTOR PROTECTION AND INVESTOR
EDUCATION MISSIONS OF STATE AND FEDERAL SECURITIES REGULATORS
Ms. WATERS. Mr. Speaker, I move to suspend the rules and agree to the
resolution (H. Res. 456) emphasizing the importance of grassroots
investor protection and the investor education missions of State and
Federal securities regulators, calling on the Securities and Exchange
Commission to collaborate with State securities regulators in the
protection of investors, and for other purposes.
The Clerk read the title of the resolution.
The text of the resolution is as follows:
H. Res. 456
Whereas State securities regulators are the original
pioneers of regulating the United States capital markets and
have protected investors during times of boom and bust, from
ticker tape to the block-chain;
Whereas State securities regulators founded the North
American Securities Administrators Association (NASAA) as a
voluntary association in 1919, 8 years after the first
securities laws were enacted in Kansas in 1911;
Whereas NASAA's membership in 2019 includes securities
administrators in the 50 States, the District of Columbia,
Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico;
Whereas the fundamental mission of the State securities
regulators is protecting investors who transact in securities
and receive investment advice, and their jurisdiction extends
to a wide variety of issuers and intermediaries who offer and
sell securities to the public;
Whereas State securities regulators are leaders in civil
and administrative enforcement actions, as well as criminal
prosecutions of securities violators;
Whereas State securities regulators have led efforts
resulting in landmark settlements to stop unfair practices in
the securities industry, the return of billions of dollars to
harmed investors, and thousands of bad actors sitting in jail
as the result of their work in investigating and uncovering
fraud;
Whereas State securities regulators independently and
within the framework of NASAA have also devised innovative
ways for small companies to raise investment capital;
Whereas State securities regulators independently and
within the framework of NASAA conduct investor education
programs throughout the United States, providing important
information to main street Americans on investing for a
secure future and avoiding scams; and
Whereas State securities regulators are known for their
accessibility and accountability to the investing public and
have been willing to push the envelope when it comes to
protecting investors: Now, therefore, be it
Resolved, That the House of Representatives--
(1) emphasizes the longstanding role of State securities
regulators in maintaining investor protection and vibrant
capital markets in the United States;
(2) supports the efforts of State securities regulators to
educate investors throughout the United States;
(3) supports the efforts of State securities regulators to
promote responsible and efficient capital formation for the
benefit of small businesses and investors throughout the
United States;
(4) urges State securities regulators to continue working
independently and within the voluntary framework of NASAA to
protect and educate investors and promote capital formation;
and
(5) urges the Securities and Exchange Commission to
maintain and expand voluntary collaboration with State
securities regulators in the interest of the investing
public.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
California (Ms. Waters) and the gentleman from Kentucky (Mr. Barr) each
will control 20 minutes.
The Chair recognizes the gentlewoman from California.
{time} 1730
General Leave
Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks on
this legislation and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from California?
There was no objection.
Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I want to thank Representative Pressley and
Representative Huizenga for bringing H. Res. 456 to the floor, a
bipartisan resolution that highlights the importance of our State
securities regulators to protecting investors. This year commemorates
the 100th anniversary of the North American Securities Administrators
Association, the oldest international investor protection organization
with a membership consisting of 67 State, provincial, and territorial
securities regulators in the 50 States, the District of Columbia, the
U.S. Virgin Islands, Puerto Rico, Canada, and Mexico.
The primary mission of both State securities regulators and NASAA is
to protect and advocate for the protection of investors, especially the
most vulnerable investors, like our Nation's seniors, who may lack the
expertise, experience, and resources to protect their own interests.
These grassroots regulators are often the first line of defense
against investment fraud and often respond to emerging frauds and
investment scams before they are detected at the Federal level.
In 2017 alone, State securities regulators conducted nearly 4,790
investigations, leading to more than 2,100 enforcement actions,
including 255 criminal prosecutions. These actions have
[[Page H5281]]
resulted in approximately $486 million in restitution for harmed
investors, nearly $79 million in fines and/or penalties, and 1,985
years in incarceration or probation being ordered.
In addition, in 2017, NASAA's U.S. member jurisdictions reported
bringing formal enforcement actions involving more than 1,100 senior
victims, illustrating their unwavering commitment to protecting senior
investors.
NASAA also engages and collaborates with Congress to promote Federal
laws to improve protections for senior investors. For example, in 2018,
we worked with NASAA to pass the Senior Safe Act, which was inspired by
a training program developed by NASAA in partnership with the Maine
Council for Elder Abuse Prevention. The Senior Safe Act addresses
barriers that financial professionals face in reporting suspected
senior financial exploitation or abuse to authorities.
NASAA also collaborated with us on the Senior Security Act, which
passed the House with broad, bipartisan support in April. That bill
would, among other things, require the SEC to work across divisions and
with the State securities regulators to ensure that seniors are not
subject to financial exploitation.
I strongly support our State securities regulators, and I urge my
colleagues to join me in supporting this resolution.
Mr. Speaker, I reserve the balance of my time.
Mr. BARR. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I, too, rise in support of H. Res. 456.
Mr. Speaker, I thank my colleagues, Congresswoman Pressley and
Congressman Huizenga, for their work on this bipartisan resolution.
More often than not, discussions in the Financial Services Committee
are about the Securities and Exchange Commission, as it is the primary
Federal regulatory agency for the U.S. securities markets.
However, State securities regulators also play an important and
complementary role in grassroots investor protection, investor
education, and facilitating capital formation.
H. Res. 456 highlights the important investor protection missions of
State and Federal securities regulators. The resolution also encourages
the continued collaboration between the SEC and State securities
regulators.
American capital markets provide an avenue for mom-and-pop investors
and retail investors to achieve the American Dream and grow their nest
egg for retirement, for their child's college tuition, or to buy a
home. Protecting investors, ensuring the integrity of our capital
markets, and promoting capital formation are goals that we all can
stand behind.
This resolution recognizes the important role State securities
regulators play on each of these fronts.
Mr. Speaker, I urge my colleagues to support H. Res. 456, and I
reserve the balance of my time.
Ms. WATERS. Mr. Speaker, I yield as much time as she may consume to
the gentlewoman from Massachusetts (Ms. Pressley), the sponsor of H.
Res. 456.
Ms. PRESSLEY. Mr. Speaker, I thank Chairwoman Waters for her
vigilance and her steadfast leadership in continuing to bring people
together across the aisle on issues of consequence to the American
people and always putting consumer protection at the center of that. I
also thank my colleague, Representative Huizenga, for his partnership.
Mr. Speaker, I rise today in support of my resolution, which
highlights the important role that State securities regulators play in
strengthening the financial services industry.
The 2008 economic crisis devastated American families everywhere.
But, as we watched the unemployment skyrocket, home values plummet, and
credit disappear, it became clear that the impact of the crisis hit
harder for some. Black families that had only just begun to build
wealth through homeownership watched everything they had worked for
disappear.
And although the recovery has been similarly unequal, it is critical
to recognize those on the front lines protecting the investments of
working families and small businesses alike.
The North American Securities Administrators Association, NASAA,
comprised of securities administrators from all 50 States, are
champions for stronger investor protections and diligent oversight.
My home State of Massachusetts was the first to require the
registration of some securities, helping to lay the groundwork for
other State models that would serve as the foundation for future
Federal securities law.
As the world's oldest international investor protection organization,
NASAA has remained vigilant in its policing of securities trading,
securing over $486 million in restitution to victims of investment
fraud in 2017 alone.
NASAA's work with AARP helps protect seniors from the troubling
upward trends in elder financial abuse. Additionally, they continue to
work with medical professionals on ways to identify seniors at risk of
financial abuse.
NASAA's efforts to spread retirement best practices can help empower
families with the knowledge to invest wisely for generations to come.
My resolution recognizes 100 years of excellence in investor
protection and encourages continued cooperation between local, State,
and Federal regulators to ensure 100 more.
Mr. Speaker, I encourage my colleagues to support my resolution.
Mr. BARR. Mr. Speaker, once again, I appreciate the work of Ms.
Pressley, and I yield back the balance of my time.
Ms. WATERS. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, this important resolution demonstrates that our Federal
form of government serves us well. Both Federal and State authorities
have important roles to play, and this is certainly true in the
securities arena.
I congratulate my colleagues from Massachusetts and Michigan for
bringing this bipartisan bill before the House.
Mr. Speaker, I urge my colleagues to join me in supporting this
important piece of legislation, and I yield back the balance of my
time.
Mr. HUIZENGA. Mr. Speaker, I rise today in support of H. Res. 456
that recognizes the importance of grassroot investor protection and the
investor education missions of State and Federal securities regulators.
Additionally, this important resolution calls on the Securities and
Exchange Commission to collaborate and work with State securities
regulators to protect investors.
Over a century ago, a group of state securities regulators had the
idea to form a network of colleagues to work together for the
protection of investors throughout North America. Shortly thereafter,
the North American Securities Administrators Association (``NASAA'')
was formed in 1919. This year, 2019, marks their 100th anniversary.
The primary mission of both state securities regulators and NASAA is
to protect and advocate for the protection of investors, especially the
most vulnerable who lack the expertise, experience, and resources to
protect their own interests.
NASAA members accomplish their mission through the vigorous
enforcement of their respective civil and criminal securities laws.
While the securities markets are global, securities are sold locally.
NASAA members are often the first line of defense against investment
fraud in their jurisdictions. Moreover, because states are ``grass
roots'' regulators, they often respond to emerging frauds and
investment scams before they are detected at the federal level.
NASAA also plays an important role in investor education, which is
one of the best measures in preventing investment fraud. NASAA members
have developed a wide array of specialized community outreach programs
to educate investors in their jurisdictions.
Most state securities regulators have established investor education
departments or divisions within their agencies. The result is an
effective network of dedicated professionals delivering unbiased,
relevant, and free investor education programs in local communities
throughout North America. These professionals can be found educating
investors in the classroom, at the workplace, and at senior centers.
NASAA members work hard to reach out to people who otherwise would not
be able to readily access such information.
For the past 15 years, NASAA has compiled and released an annual list
of top 10 investment scams, schemes, and scandals to alert investors to
increasingly complex and confusing investment fraud.
Another important part of NASAA's mission is to help with capital
formation. To that end, state securities regulators often work with and
assist local businesses that seek capital investment. Small businesses
are the lifeblood of our economy. NASAA members help facilitate a
healthy small business economy that increases growth, investment, and
job creation.
[[Page H5282]]
In my home state of Michigan, NASAA members have worked tirelessly to
become a leading voice for improving investment education, protected
investors by utilizing securities enforcement, and helped build
stronger communities by assisting in capital formation projects.
Today, NASAA is the oldest international investor protection
organization with a membership consisting of 67 state, provincial, and
territorial securities regulators in the 50 states, the District of
Columbia, the U.S. Virgin Islands, Puerto Rico, Canada, and Mexico.
I want to congratulate NASAA on their first 100 years and look
forward to their work continuing for many years ahead. I urge passage
of this resolution acknowledging the superb work of this outstanding
organization.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from California (Ms. Waters) that the House suspend the
rules and agree to the resolution, H. Res. 456.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the resolution was agreed to.
A motion to reconsider was laid on the table.
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