The House of Representatives yesterday voted 67-7 to pass new legislation that effectively repeals a Utah statute dating from May, 2006, which required broker-dealers to inform the state’s Division of Securities when there was a “failure to deliver” of securities issued by Utah companies traded on national markets.
The Securities Industry and Financial Markets Association sued Utah in Federal District Court in July of 2006, claiming among other things that the original Utah statute was preempted by federal law because it created operational requirements that differed from the Securities Exchange Act.
“Yesterday’s vote marks a victory for investors, who are much better served by a single, national financial market with uniform laws and regulations,” says Marc Lackritz, co-CEO of SIFMA.
“If every state were allowed to set its own unique operational or record-keeping rules governing US trading markets, the patchwork of regulation would raise costs, increase inefficiency and stifle innovation, all to the detriment of the investing public,” he adds.