Bismarck, ND - North Dakota Securities Commissioner Karen Tyler today applauded the enactment of federal legislation to protect military personnel from unscrupulous sales of insurance and investment products. The Military Personnel Financial Services Protection Act was signed into law on September 29 by President Bush.
We are pleased that Congress expressly preserved the authority of state securities regulators on military installations, Tyler said. The men and women of our military and their families must be afforded the protection of the regulatory agencies best equipped to take swift enforcement action against investment-related fraud and misconduct.
State securities regulators also support provisions in the newly enacted law that will allow online public disclosure of disciplinary and other information about financial firms and their employees. This will enhance investor protection by ensuring that the investing public can access this information online before deciding which firm and representative will handle their brokerage and investment advisory business.
In addition, the Department of Defense will now maintain a list of individuals who have been banned from selling financial products on military bases, and will share that list with securities and insurance regulators. This will help track rogue agents who go from base to base using unscrupulous sales tactics to sell unsuitable financial products, Tyler said.
The legislation also bans the sale of high-priced, contractual mutual funds. The product has become scarce in the civilian market but was still being offered to soldiers by sales people allowed on military bases.