What is the role of state securities regulators in protecting investors?

State securities regulators play an important role in protecting investors from investment fraud. In North Carolina, as in other states, the State Department of Justice and the North Carolina Securities Division of the Office of the Attorney General are charged with regulating the sale of securities by licensing, registering, and monitoring broker/dealers, investment advisors, and agents. These regulators have the power to investigate potential fraudulent activity and to enforce rules and regulations that are designed to protect investors. State securities regulators also have the authority to investigate complaints and allegations of securities fraud and other violations. If a complaint or allegation is found to be true, the state securities regulator may impose penalties, including criminal or civil sanctions, cease and desist orders, and the revocation of licenses. In addition, state securities regulators are charged with providing investor education and financial literacy programs that help individuals understand the risks and rewards associated with investing, and how to spot potential fraudulent activity. Education programs may also cover topics such as the importance of diversification, the basics of asset allocation, and market fundamentals. State securities regulators have an important role in protecting investors from fraud. With their power to investigate and enforce laws, they help ensure that investors have access to accurate and reliable information and can make informed decisions about their investments.

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What is the role of state securities regulators in protecting investors?

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