NASAA And The DOC Warn Investors Of The “Madding Crowd’s Ignoble Strife”
Crowdfunding Caveats Issued To say that the North America Securities Administrators Association was not pleased when Congress enacted the JOBS Act is like saying that Captain George Pollard and his crew had an unpleasant cruise on the Essex. NASAA was especially wounded by Congress’ decision to create a crowdfunding exemption under the Securities Act of 1933 and to preempt state qualification requirements with offerings made pursuant Read more...
NASAA Slams The JOBS Act, But Have The States Really Been Handcuffed?
NASAA isn’t in the business of firing off rockets but it did launch a missile yesterday targeted directly at the JOBS Act. In this press release, NASAA’s president, Jack E. Herstein, is quoted as saying: The JOBS bill the President signed today is based on faulty premises and will seriously hurt all investors by either eliminating or reducing transparency and investor protections. It will Read more...
Kudos For California’s Commissioner Of Corporations
The North American Securities Administrators Association (NASAA) describes itself as “the oldest international investor protection organization”. It is comprised of 67 state, provincial, and territorial securities administrators in the 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico, Canada, and Mexico. At lunch yesterday, I remarked to Broc Romanek that it has been a long time since a Read more...
Does California’s Anti-Waiver Statute Void Choice Of Forum Agreements?
California Corporations Code Section 25701 is derived from Section 410(g) of the Uniform Securities Act (1956). Section 25701 voids any condition, stipulation or provision purporting to bind any person acquiring any security to waive compliance with any provision of the Corporate Securities Law or any rule thereunder. Does this statute prevent investors from agreeing that disputes will be decided by courts in other states? Earlier Read more...
Commissioner Invites Comments On Adopting New Custody Rule
Investment advisers frequently have custody, either directly or indirectly, of their clients’ assets. Obviously, custody of another’s assets can lead to infidelity. In the word’s of the satirist Juvenal, the question necessarily becomes “sed quis custodiet ipsos custodes? (but who shall guard the guards?). In the case of registered investment advisers, securities regulators are the guards. Unfortunately, these guards have Read more...
Concurrent Jurisdiction Found For Covered Class Actions
In 1997, I testified at an oversight hearing before the United States Senate Banking, Housing & Urban Affairs Committee regarding securities litigation abuses. At the time, Congress was considering whether to enact legislation to stop plaintiffs from filing securities class actions in state court in order to avoid stricter federal standards applicable to class action lawsuits. Both the Securities and Exchange Commission Read more...
How Soon Hath Time! July 21 Deadline Looms For Investment Advisers But Grace May Be At Hand
The hasting days fly on with full career while the SEC proceeds with rulemaking to implement the Dodd-Frank Act’s changes to the regulation of investment advisers. Last week, Associate Director Robert E. Plaze in the SEC’s Division of Investment Management confirmed that the SEC intendes to complete required rulemaking by July 21, 2011 in this letter to David Massey, the President of the North American Securities Read more...
