Each state has its own securities regulatory office, sometimes housed in a state agency that regulates other financial industries under state jurisdiction, such as insurance and banking. 40 states base their securities laws on the Uniform Securities Act of 1956, but major differences exist in both the laws themselves and their interpretations.
State regulators tend to focus more on combating fraud within their borders and investigating the merit of irregular investments and unregistered companies. For example, while the SEC doesn’t address work-at-home businesses, many of which are marketed as get-rich-quick schemes, states may see these as investments that fall under anti-fraud provisions in their securities laws.
States also register and supervise broker-dealers and investment advisers that are not registered with the SEC, including investment advisers managing less than $25 million. States also track complaints, which can be helpful if you’re checking a broker’s background.
You can find your state securities regulator by visiting http://www.nasaa.org and clicking on Find Regulator.
