The best single thing the SEC could do is to work closely (or at all)with
NASAA members. Currently, you conclude firms under state jurisdiction have a
right to expect suborning of activities the SEC finds. 

SEC and NASAA examiners should work together, communicate  meaningfully and
often.THe correct  addresses for the states should  be posted on the SEC site.
Announcements on the SEC site should be dated. 

The SEC's apparent infatuation with various SRO's, whose performance has been
breathtaking, (Christy's breath was taken away) should be moderated by an
earnest search on the SEC's part  for other partners  whom they  can trust. 


If the states are viewed as valuable partners rather than step children of a
lesser god;
perhaps they would have the incentive to surrender some of their autonomy in
search of a more unified regulatory approach. As it is, why should the states
dress up and polish their shoes if they're not invited to the dance anyway?


Today, before close of business, the SEC should require that U-5's with "Yes"
answers should be made availible to the states where the reps were registered
via a CRD printout first thing in the morning, the same way the NASD districts
are notified. As it is now, a rep can get termed for rape and pillage and the
state wouldn't know unless the rep reapplys at another firm for registration,
or an extraordinarily thorough field examiner finds that U-5 (and most
branches don't keep the U-5) among the million other documents (s)he reviews
during a branch review. 

Ray Gambel (I am an examiner with a state, but the fews  are my own)