Florida state courts have not yet addressed the key regulatory issue presented in EarthBoard and Temple, but these costs can best be avoided through a clarification of federal law Notwithstanding the existence of a federal overlay through the NSMIA
, Florida's action to strengthen its licensing and enforcement functions reinforces traditional methods of protection for investors by providing a screening mechanism to avoid licensure in circumstances of individuals with a criminal record of fraud, and those whose conduct presents a history of "moral turpitude.
243) And, if criticisms of preemption under the NSMIA are any guide, then the result may be more null preemption under the guise of duplicative regulation null preemption.
87) Since NSMIA, federal law precludes states from imposing qualification requirements on any "covered security.
Perino, supra note 92, at 331 ("The allocations of governmental authority made in the NSMIA translate well to allocating authority and control over the creation and administration of private causes of action.
Enacted in October 1996, NSMIA dramatically reallocated the respective roles of the federal government and the states in practically all areas of securities regulation, including the regulation of broker-dealers, investment advisers, and mutual funds.
One of the most important consequences of NSMIA was the elimination of the authority of the states to substantively regulate four broad classes of securities.
Of course, prior to NSMIA, the fact that the offering complied with Rule 506 was meaningless for purposes of the Florida Securities Act.