NASAA Approves Model Act for States to Establish Restitution Funds

The North American Securities Administrators Association ("NASAA") adopted a model act that could serve as a basis for states to offer financial assistance to victims of securities violations who have been awarded restitution but have yet to receive full payment.

Among other things, the model act would:

• provide for the creation of a state securities restitution fund;

• establish eligibility criteria for victims;

• set limits on the amount of restitution assistance awards that can be paid out, but allow higher awards for a victim that is deemed to be a "vulnerable person"; and

• outline recovery mechanisms.