Congress is considering a wide variety of new bills and proposals which, if passed, will dramatically affect the securities industry. For example, the series of proposals to drastically modify the law as same relate to class action lawsuits.
Another proposal has a more direct benefit to stockbrokers - a proposal to remove State securities laws. Under the proposal, state regulators would only be able to enforce federal securities laws and require companies and firms to register and pay fees. For brokers, this means that state regulators would not be able to deny or hold up registrations once the NASD has given approval, a boon for brokers whose licenses can be held up in individual states for months.
The downside of the bill is the removal of state regulation, and the ability of the states to control the activities of stock brokers within their own boundaries. In these days of supposed decreasing of federal regulations, it seems odd for there to be a push in the opposite direction, concentrating more power in the federal government. However, the myraid of regulations affecting the securities industry must be addressed, and having 51 different, and overlapping regulations is certainly not an effective method of dealing with regulation of any industry.
Those who are interested can keep track of the status of these, and other bills affecting the securities industry, at the Thomas web site, or simply follow this link
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