This month, state securities regulators throughout the United States are observing 100 years of protecting investors.
A century ago, Kansas Banking Commissioner Joseph Dolley took a stand against stock speculators running rampant in Kansas and urged state legislators to act.
In his 1910 report to state legislators, Dolley recommended lawmakers pass a law requiring “all parties who offer stocks and bonds for sale in Kansas to register with some department of state, setting forth in detail their securities, and requiring them to furnish any other information that said department may demand of them, and to submit to a full examination of their affairs if said department should deem it advisable.”
The legislature responded and on March 10, 1911, what became known as the Kansas Blue Sky law went into effect. And with that, the past century of state securities regulation was born.
I hope you can join us for a centennial celebration this September at our annual conference in Wichita, Kansas.
Yesterday and Today
A lot has changed in the last century. Reforms are now taking shape at the national level to give new authority to state securities regulators to address the challenges facing 21st century investors.
The Dodd-Frank Act recognized the strong investor protection role of state securities regulators by raising the threshold for state-registered investment advisers from $25 million to $100 million. By the time this provision goes into effect, state securities regulators will oversee 75 percent of all IA firms.