Securities Bulletin

              SECURITIES bulletin
The stock market’s ups and downs have been making
major headlines. Some investors panic when they see a
declining market and search for alternative invest-ments.
Many alternative investments that promise high
returns are nothing more than schemes that play off
the headlines. For example, when gas prices were on
the rise, some con artists pitched phony investments in
alternative energy. With the struggling real estate mar-ket,
purported investments in foreclosed properties
are being touted.
Seniors and investors nearing retirement are often
most at risk of being targeted. Some investors fall for
these scams and wind up losing all their retirement sav-ings.
Following are ways to protect yourself from
potential scams:
• Hang up on aggressive cold callers and delete unso-licited
e-mails promoting investment opportunities.
• Request written information about any investment.
Review the materials with a trusted financial adviser,
attorney or accountant before investing.
• Use common sense. If it sounds too good to be
true, it probably is.
• Contact the Secretary of State Securities Department
to check if the seller and the investment are regis-tered
and licensed. If they aren’t, don’t invest.
If you think you have been a victim of financial fraud,
please report it to the Securities Department immedi-ately.
Your call could keep others from losing their
money.
Jesse White
Secretary of State
SPRING 2008
The North American Securities Administrators
Association has identified 11 key legislative priorities for
the second session of the 110th Congress. The 11-point
legislative agenda advances investor protection and
promotes an efficient and effective regulatory environ-ment
necessary to maintain investor confidence in the capital mar-kets.
A complete synopsis of each of the 11 points is available at
www.nasaa.org.
1. Support a strong and effective regulatory structure for capital
markets.
2. Restore fairness and balance in the securities arbitration system.
3. Increase sanctions for crimes against senior citizens.
4. Define equity indexed annuities as securities.
5. Uphold state role in data security breach protection.
6. Maintain strong investor protection provisions of the Sarbanes-
Oxley Act.
7. Advance and increase financial education efforts.
8. Reinstate state regulatory authority of Regulation D 506
offerings.
9. Update and strengthen the accredited investor definition.
10. Encourage hedge fund transparency and pension protection.
11. Preserve the authority of state securities regulators.
Investor Education
The Securities Department’s Investor Education Division will present
seminars and host exhibits at two teachers conferences in the
coming months:
• IACEA Adult Education Conference — Springfield, March 5-7
• Association for Career and Technical Education Conference —
Springfield, June 18
The department also will again host the Financial Regulators Fair
on April 23, 10 a.m. to 2 p.m., in the lobby of the James R.
Thompson Center, 100 W. Randolph, Chicago. The fair is held in
conjunction with Money Smart Week. Other participating agencies
include the State Treasurer’s office, the U.S. Securities and
Exchange Commission, the FDIC, the Office of Thrift Supervision of
the U.S Treasury, the National Futures Association, FINRA (formerly
the NYSE and NASD self-regulatory organizations) and the Federal
Reserve Bank of Chicago. The fair is open to the public.
NASAA sets pro-investor
legislative priorities
IN
THIS
ISSUE
• NASAA SETS LEGISLATIVE PRIORITIES •
• INVESTOR EDUCATION •
• FAQ: MARGIN ACCOUNTS •
• DEALER/INVESTMENT ADVISER RENEWALS •
• FSI: NEW TOOL FOR TEACHING FRAUD AWARENESS •
A NEWSLETTER OF THE ILLINOIS SECURITIES DEPARTMENT • SECRETARY OF STATE JESSE WHITE