Investor Education, Protection Highlights 2018 for TDCI Securities Division

NASHVILLE – Bringing national attention to the Volunteer State, promoting investor education and enforcing Tennessee’s securities laws highlighted the accomplishments of the Tennessee Department of Commerce & Insurance’s (TDCI) Securities division team in 2018.

The Tennessee Securities Division is responsible for enforcing the Tennessee Securities Act of 1980 and protecting the investors of Tennessee by maintaining the integrity of the securities market through the regulation of the securities industry and capital markets of Tennessee. The Division also advocates investor education in the prevention of fraud.

“In 2018, the TDCI Securities team successfully balanced investor protection and disciplinary action with helping facilitate Tennessee’s thriving financial marketplace through education, registering new broker-dealers and conducting financial examinations,” said TDCI Commissioner Julie Mix McPeak. “I congratulate our Securities division team for their hard work last year, and I believe 2019 will be an even better year.”

The Securities division’s accomplishments in 2018 include:

• Assistant Commissioner Frank Borger-Gilligan’s selection as president-elect of the North American Securities Administrators Association (NASAA), the oldest international investor protection agency. He will serve as president for the 2019-20 term.
• Nashville being named host of the 2020 NASAA annual conference, which will bring together state and federal regulators from 67 jurisdictions in North America, Canada, and Mexico, as well as members of the financial services industry throughout North America.
• Approval of 34,421 applications for registration as broker-dealer agents, approval of 1,094 applications for registration as investment adviser representatives, and completion of over 80 examinations of broker-dealers and investment advisers.
• 49 outreach events in 16 different cities across Tennessee, focusing on senior financial exploitation, the basics of investments, common investment schemes, among other topics.

• Receipt of 153 complaints, which resulted in officially opening 86 insurance investigations and 31 securities investigations.   

The number of investors in Tennessee grew in 2018 as both the number of registered broker-dealers and investment adviser representatives increased. At the end of 2018, Tennessee had 142,059 registered broker-dealer agents compared to 136,820 at the end of December 2017 (a net gain of 5,239) and 5,884 registered investment adviser representatives compared to 5,672 at end of December 2017 (a net gain of 212).

As the number of investors grows in Tennessee and as investment strategies evolve in 2019, Tennessee investors should always ask themselves several important questions before making any investment. Remember:

What do I want to accomplish?  Set specific investment goals. Be sure to include target dates and dollar amounts so you have a realistic idea of how long it will take to achieve your goals.

How much risk am I willing to take? Are you willing to risk losing some or all of your money in order to earn higher returns, or will you accept lower returns for the peace of mind of knowing your initial investment is safer? Understanding how much risk you are comfortable taking determines your “risk tolerance,” which in turn informs which types of investment products are most suitable for you.

What type of investment is right for me? Each investment comes with certain characteristics, risk levels and potential returns. Understanding your situation—risk tolerance, time horizon and specific goals—will make it easier to choose the right investment for you.

Am I comfortable enough to do this on my own? How much time are you willing to spend sorting through investment choices and keeping up with the markets? How confident are you in your investment knowledge and ability to carry out your decisions? Visit BrokcerCheck.finra.org to research the background and experience of financial brokers, advisers and firms.

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