Ms. Erin Houston
Administrator/Deputy Secretary of State for Securities
Securities Division
2250 Las Vegas Boulevard North
Suite 400
North Las Vegas, NV 89030

RE: Comments on Revised Proposed Regulations to Nevada Administrative Code Chapter 90 (LCB File Number R018-21)

Dear Erin:

As you know, the Securities Industry and Financial Markets Association (SIFMA)1 is a national trade association which represents more than 350 large, medium and small broker-dealers, investment banks and asset managers, many of whom have a presence in Nevada.

We appreciate the opportunity to comment on your proposed amendments to Nevada Administrative Code Chapter 90 (LCB File Number R018-21). Specifically, we would like provide input on Sections 36 and 48 of the Revised Proposed Regulations.

I. Section 36, Delaying a Transaction or Disbursement When Financial Exploitation is Suspected

On September 22, 2021, the Nevada Securities Division announced a workshop to solicit comments on proposed regulations that would significantly revise portions of Chapter 90 of the Nevada Administrative Code (“NAC”). Written comments were also requested.

On October 21, 2021, SIFMA submitted comments (linked here) on Section 15 of the proposed regulations, which focused on delaying disbursements when financial exploitation is suspected. We commended the Securities Division for its efforts to protect senior and vulnerable investors but suggested that it revise its proposal to incorporate additional investor protections that have been adopted by other states in recent years.

We applaud the Division for including substantial additional senior investor protections in its revised proposed regulations. Most notably, the revised regulations allow Broker-Dealers (BD) and Investment Advisers (IAs) to delay disbursements and transactions when financial exploitation is suspected. They also build in a flexible extension of the hold when necessary, align the various time periods, and enable BDs and IAs, upon notifying the relevant agencies, to continue their internal reviews as necessary and provide status updates upon request. We believe these are valuable changes which substantially enhance investor protection.

 

1 SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.