Louisiana House Bill HCR109

Louisiana 2010 Regular Session

• Introduced: 4/14/10
• Engrossed: 4/14/10
• Passed: 4/22/10

Caption

Memorializes congress to enact legislation that will result in meaningful reforms to the regulation of the financial services industry and enhance investor protections

Impact

If enacted, HCR109 would lead to potential changes in how state and federal authorities regulate the financial services industry. The resolution points out that NSMIA restricts state jurisdictions over certain investment advisers and securities, ultimately hampering effective supervision and oversight. By calling for a review and reform of these regulations, the bill indicates a desire to restore confidence in the financial markets and enhance the capabilities of state regulators, which proponents argue are already effective in managing and overseeing investment activities.

Summary

House Concurrent Resolution 109 (HCR109) aims to memorialize the United States Congress to implement significant reforms in the regulation of the financial services industry, particularly enhancing investor protection. The resolution suggests that the current legislative framework established by the National Securities Market Improvement Act of 1996 (NSMIA) has limited the power of state securities regulators, which in turn has negatively impacted investor safety and market integrity. HCR109 seeks to address these regulatory shortcomings and advocate for stronger oversight at the federal level.

Sentiment

General sentiment around HCR109 appears to favor the strengthening of regulations to protect investors, reflecting a perceived need for more robust oversight mechanisms following high-profile fraudulent financial activities. While the resolution is largely supportive in tone, it indicates a recognition of the challenges posed by the existing federal regulations that undercut state authority. The call for congressional action signifies a unifying sentiment among legislators who believe that improvements to investor protections are necessary.

Contention

Notable points of contention revolve around the balance of power between state and federal regulators, as well as concerns regarding the effectiveness of existing regulations. Some voices may argue against the potential complications that could arise from increased regulation, particularly if it hampers market operations or creates redundancies. However, supporters of HCR109 argue that strengthening state authorities is crucial for preventing fraud and protecting investors, thus illustrating a divide in perspectives on regulatory approaches.