The North American Securities Administrators Association released a set of five core principles that it hopes will help guide the ongoing policy debate over the changes necessary to strengthen the financial services regulatory structure, the association said Wednesday.

NASAA recommends that policymakers apply five core principles to regulatory reform:

> preserving the system of state/federal collaboration while streamlining where possible;

> closing regulatory gaps by subjecting all financial products and markets to regulation;

> strengthening standards of conduct, and using “principles” to complement rules, not replace them;

> improving oversight through better risk assessment and inter-agency communication; and

> both toughening enforcement and shoring up private remedies.

“Our system of financial services regulation must be improved to better protect our investors, our markets and our economy as a whole,” said NASAA president and Colorado Securities commissioner Fred Joseph, in a release. “To serve all of these vital interests, Congress and the Administration, working together with federal and state regulators, as well as self-regulatory organizations, should take steps to ensure that our new approach is strong, comprehensive, collaborative and efficient.”

“NASAA is committed to working with the incoming Congress and Administration as the new financial services regulatory structure unfolds,” Joseph said. “We will continue to advocate our position that any change to this structure should not come at the expense of Main Street investor protection.”

Joseph also announced that NASAA will host a Regulatory Reform Roundtable next month in Washington, D.C. where NASAA members will discuss the principles and present specific recommendations for future reforms.

IE