ASA Outlines Policies to Combat Investment Fraud

WASHINGTON – The American Securities Association (ASA) today sent a letter outlining policies to combat investment fraud ahead of a House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions hearing examining tools and techniques to combat fraud. 

“ASA applauds Subcommittee Chairman Davidson for his leadership to address the growing problem of investment fraud in the United States and steps that Congress and regulators can take to protect American households from fraudsters and state-sponsored criminal organizations,” said ASA President and CEO Chris Iacovella. “While the relationship between government and private businesses has become needlessly strained in recent years, a reset, especially in the area of cybersecurity and combatting fraud, is in order. ASA looks forward to being a helpful partner to address this major issue facing investors and the American public.”

“Businesses should be incentivized to report fraud to regulatory bodies because it aligns with corporate responsibility and contributes to a more transparent and trustworthy business environment,” Iacovella wrote in the letter.

ASA has previously called on the SEC and the SEC’s Investor Advisory Committee (IAC) to explore new methods where government and business can work in tandem to protect Americans from financial fraud.

“One possible mechanism would be to establish a portal where regulated entities can anonymously report trends or fraudulent activity targeting their firm or their customers,“ Iacovella wrote. “This type of public-private partnership would allow for the anonymous submission of crucial information through a secure clearinghouse and provide regulators with more intelligence about the latest scams than they currently receive. Businesses would be encouraged to submit information about such activity or threats without fear of retribution.” 

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.