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Policymakers should promote transparency in the investment industry. Investment options should be explained and disclosed clearly and understandably.
Registration as a financial professional should not be limited by the type of investment advice or nature of the advising entity.
States should:
Individuals should have adequate redress, including access to the courts and class actions.
State laws should provide for criminal penalties against those who commit securities fraud.
Individuals who work for broker-dealers and sell investment products should be required to disclose relevant information and conflicts of interest, regardless of the type of license they hold.
Regulators should work to eliminate fraudulent, deceptive, or unfair practices with respect to investment sales, accounting methods, disclosures, and market structure.
Brokers and other financial professionals who commit fraud currently face civil sanctions. Policymakers should consider adding criminal penalties to this.
Victims of investment fraud should have adequate federal and state statutory remedies, including access to courts for individual or class claims.
State regulators should create a regulatory structure to promote consumer protection. This includes establishing full-time, independent insurance consumer advocate offices.
States should establish strong conflict-of-interest regulations and revolving door limits. Public officials and staff should be independent from the industries they regulate.