[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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