Securities division emphasizes investor protection, scams outreach and restitution to victims

Deputy Commissioner Amanda Smith told the House Commerce & Economic Development Committee on Jan. 15, 2025, that the Securities Division enforces the Vermont Uniform Securities Act, registers broker‑dealers and investment advisers, conducts examinations, and pursues enforcement actions prioritizing investor restitution.

"The core objective of our laws is investor protection," Smith said, summarizing registration, examination and enforcement responsibilities and describing the division’s limited staff of nine.

Smith described the division’s processes: manual review of registration requests for broker‑dealers and state‑registered investment advisers, on‑site examinations, corporate finance reviews of securities offerings, and investigatory powers including subpoenas and compelled testimony. She noted the division coordinates multistate investigations through the North American Securities Administrators Association when matters cross state lines.

On investor fraud, Smith described protections for vulnerable adults: firms may delay disbursements when a suspicious wire or financial exploitation is identified, file reports with Adult Protective Services and the division, and work to obtain restitution. She recounted outreach efforts—an interactive "fraud bingo" program at senior centers—and cited enforcement results: since 2022 the division’s actions have generated over $2 million in penalties and more than $397,000 to the Vermont Services and Victim Restitution Fund.

Smith invited lawmakers and staff to attend upcoming outreach sessions and asked for support to expand examiner capacity: the division conducts numerous registrations and examinations but remains relatively small given the number of registered representatives and firms operating in Vermont.