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Regular Session, 2010
HOUSE CONCURRENT RESOLUTI ON NO. 109
BY REPRESENTATIVE WHITE
A CONCURRENT RESOLUTI ON
To memorialize 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.
WHEREAS, the United States Congress enacted the National Securities Market
Improvement Act of 1996, or NSMIA; and
WHEREAS, NSMIA preempted the authority of state securities regulators in a
number of key areas, thus hampering their ability to protect investors, provide for market
integrity, and strengthen securities markets; and
WHEREAS, NSMIA restricted the jurisdiction of state securities regulators over
investment advisers to those firms having assets under management of less than twenty-five
million dollars; and
WHEREAS, NSMIA preempted the authority of state securities regulators over
securities that are exempt from registration pursuant to Securities and Exchange Commission
Regulation D; and
WHEREAS, these restrictions of state authority, coupled with apparent lapses in
oversight by federal regulators, have resulted in a regulatory environment that has at times
been ineffective in detecting fraudulent activity before it becomes large-scale; and
WHEREAS, this fraudulent activity has been highlighted by the Ponzi scheme
perpetrated by Bernard Madoff and the alleged Stanford Financial Group fraud; and
WHEREAS, state securities regulators have demonstrated the willingness and ability
to effectively supervise the investment advisers and securities offerings under their
jurisdiction; and
WHEREAS, the United States Congress is now considering legislation to remedy
some of the regulatory problems presented by the enactment of NSMIA, specifically ENROLLEDHCR NO. 109
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increasing the threshold for state supervision of investment advisers from twenty-five
million dollars to one hundred million dollars in assets under management and by reinstating
state authority over securities offerings issued pursuant to Regulation D.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
memorialize 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.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
presiding officers of the Senate and the House of Representatives of the Congress of the
United States of America and to each member of the Louisiana congressional delegation.
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE