NASAA Deputy General Counsel Rick Fleming Testimony for Senate Banking Committee

Rick Fleming Deputy General Counsel NASAARick Fleming, Deputy General Counsel for the North American Securities Administrators Association (NASAA) – a group which represents state and provincial securities regulators, presented at the US Senate Committee on Banking, Housing & Urban Affairs today.  The NASAA views their members as the first line of defense in protecting retail investors and note their members are “leaders in in criminal prosecution of securities violators”.

While the NASAA “shares Congress’ desire to improve the United States economy” they have not always been viewed as supporters of aspects of the JOBS Act including popular crowdfunding.

In regards to Title II or General Solicitation the NASAA,

While some of this impact will be positive, “NASAA members can anticipate that a greater number of investors will be defrauded, sold unsuitable investment products, or otherwise victimized in offerings conducted under Rule 506.
NASAA believes that it is imperative for the SEC to adopt reasonable rules to protect investors in this market and that improvements…”

With Title III or the segment of the regulation which allows crowdfunding the NASAAA states that due to the length of the proposed rules they have yet to formulate an official response (the document was over 500 pages).  Fleming does note the NASAA’s largest concern about Title III “is that it removed much of the state’s authority over equity-based crowdfunding“.

The prepared testimony is posted in it’s entirety below.

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