Good afternoon. I am pleased to participate virtually alongside my colleagues from the North American Securities Administrators Association (“NASAA”), the Georgia Secretary of State, and the Securities and Exchange Commission. Thank you to the participants in the roundtables and interactive sessions set for today and tomorrow.

This roundtable and similar events are a means to collect and share information among investors and regulators. In his most recent shareholder letter, Berkshire Hathaway Chairman Warren Buffet described his model of the ideal shareholder based on his sister Bertie.[1] Like many investors, Bertie is smart, wise, and sensible, but she is not a CPA or an economics expert. She has invested her savings in the capital markets. Bertie is described as “nobody’s fool” but even investors like Bertie can be the victim of investment fraud committed by bad actors using increasingly sophisticated techniques.

As a former California state securities regulator, I know that state regulators can be the first ones to see new investor frauds and to understand the harm these schemes can have on investors, who may lose their entire life savings as a result. Therefore, open lines of communication among state regulators, law enforcement, and federal regulators are necessary if we are to move efficiently and expediently. In my view, the role of a regulator in protecting investors is to ferret out bad actors and foster the provision of information necessary to make informed investment decisions. Capital formation—a core SEC mission and one that is vital to our economy—cannot flourish in an environment rife with fraud and deceit. At the same time, any investment involves risk and we must avoid paternalistic regulation that presumes the government knows best. The discussion today will hopefully allow all of us to better support investor needs and to find ways to assist with challenges facing investors.

At today’s roundtable, you will hear from investors and experts and will have the opportunity to attend a master class on financial and investment literacy. More information is available at our website at www.investor.gov. If you ever have the unfortunate experience of encountering a bad actor, please reach out to either the Commission or to our state partners.[2]

Thank you, Christina [Martin Firvida], Claire [McHenry], Noula [Zaharis] and Dr. [Mary] Gowan for organizing this Retail Investor and Fraud Prevention Roundtable. I look forward to hearing the discussions as well as the stories from investors.