Roles in financial services regulation

FederalStateLocal

Federal legislation should provide a minimum level of consumer protections. It should preserve states’ ability to provide additional protections to consumers.

When considering proposals that include preemption provisions in federal laws and regulations, policymakers should consider:

  • the extent to which the federal or state authorities have identified and focused on the specified problem and addressed the issue satisfactorily;
  • the potential benefits resulting from additional federal, state, or local laws;
  • the possibility of intolerably high compliance burdens resulting from both federal and state regulations;
  • unique state or local needs that would be adversely affected;
  • the capacity of states to respond effectively to emerging issues, unusual circumstances, or unanticipated consequences;
  • the need to preserve the role of states as laboratories for policy innovation within our federal system; and
  • the importance of giving state attorneys general and other state officials concurrent authority to enforce federal statutes intended to protect consumer and investor rights.

State and local governments should expand and strengthen consumer protections, as well as consumer outreach and education programs. Consumer outreach and education programs should also be properly funded.