The Uniform Securities Act serves as a model for state-level regulations to standardize securities trading and prevent fraud. The 1956 version is considered a milestone, while later versions have had limited success in gaining support.
The Uniform Securities Act is a part of the law of the United States of America. In essence, this federal act serves as a blueprint or starting point for state-level regulations that aim to standardize the buying and selling of securities. The purpose of the Uniform Securities Act is to create an environment in which fraudulent activity can be identified and managed across state lines.
There have been several incarnations of the Uniform Securities Act. The first attempt to establish such a standard was in 1930. At that time, the Uniform Sales of Securities Act was adopted, which included components that could be easily adopted by states and supported by the federal government. This act met with only limited success, however. In 1943, the creator body, the National Conference of Commissioners on State Uniform Laws, elected to drop the act from the list of active uniform acts.
A second attempt to present a viable option came in the form of the Uniform Securities Act of 1956. Considered more comprehensive and therefore a better basis to work from, this version of the act was able to garner substantial support from many of the been around the nation. Many still view the Uniform Securities Act of 1956 as a milestone in helping establish uniform state laws dealing with securities and other investments.
Amended versions of the Uniform Securities Act appeared over the next several years, but met with minimal success. In 1985, a new incarnation of the act appeared, but it didn’t seem to have enough improvements to attract much attention. The 1985 act was amended in 1988, but has not yet been considered an improvement over the 1956 document. The most recent attempt at a new version was in 2002. To date, none of the documents prepared by the Uniform Securities Act of 1956 met with great enthusiasm from a majority of states within the Union.
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