HLS 10RS-2021 ORIGINAL
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Regular Session, 2010
HOUSE CONCURRENT RESOLUTI ON NO. 109
BY REPRESENTATIVE WHITE
FINANCIAL INSTITUTIONS: Memorializes congress to enact legislation that will result
in meaningful reforms to the regulation of the financial services industry and
enhance investor protections
A CONCURRENT RESOLUTI ON1
To memorialize the United States Congress to take such actions as are necessary to enact2
legislation that will result in meaningful reforms to the regulation of the financial3
services industry and enhance investor protection.4
WHEREAS, the United States Congress enacted the National Securities Market5
Improvement Act of 1996, or NSMIA; and6
WHEREAS, NSMIA preempted the authority of state securities regulators in a7
number of key areas, thus hampering their ability to protect investors, provide for market8
integrity, and strengthen securities markets; and9
WHEREAS, NSMIA restricted the jurisdiction of state securities regulators over10
investment advisers to those firms having assets under management of less than twenty-five11
million dollars; and12
WHEREAS, NSMIA preempted the authority of state securities regulators over13
securities that are exempt from registration pursuant to Securities and Exchange Commission14
Regulation D; and15
WHEREAS, these restrictions of state authority, coupled with apparent lapses in16
oversight by federal regulators, have resulted in a regulatory environment that has at times17
been ineffective in detecting fraudulent activity before it becomes large-scale; and18
WHEREAS, this fraudulent activity has been highlighted by the Ponzi scheme19
perpetrated by Bernard Madoff and the alleged Stanford Financial Group fraud; and20 HLS 10RS-2021 ORIGINAL
HCR NO. 109
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WHEREAS, state securities regulators have demonstrated the willingness and ability1
to effectively supervise the investment advisers and securities offerings under their2
jurisdiction; and3
WHEREAS, the United States Congress is now considering legislation to remedy4
some of the regulatory problems presented by the enactment of NSMIA, specifically5
increasing the threshold for state supervision of investment advisers from twenty-five6
million dollars to one hundred million dollars in assets under management and by reinstating7
state authority over securities offerings issued pursuant to Regulation D.8
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby9
memorialize the United States Congress to take such actions as are necessary to enact10
legislation that will result in meaningful reforms to the regulation of the financial services11
industry and enhance investor protection.12
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the13
presiding officers of the Senate and the House of Representatives of the Congress of the14
United States of America and to each member of the Louisiana congressional delegation.15
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
White HCR No. 109
Memorializes the United States Congress to take such actions as are necessary to enact
legislation that will result in meaningful reforms to the regulation of the financial services
industry and enhance investor protection.