What is the main purpose of the National Securities Market Improvement Act (NSMIA)?

The main purpose of the National Securities Market Improvement Act (NSMIA) is to restructure federal and state regulatory responsibilities. This act was enacted to streamline the regulatory framework by reducing the overlap between federal and state securities regulations. It aims to provide greater uniformity and efficiency in the regulation of the securities market.

One of the significant changes NSMIA brought was the preemption of certain state securities laws regarding the registration of securities and investment advisers, meaning that federal regulations would take precedence in specific instances. This change allows for a more cohesive regulatory environment, which benefits both issuers and investors by clarifying the rules and simplifying compliance efforts.

Other choices reflect concepts that the act does not primarily address. For instance, increasing state powers over local stock exchanges does not align with the act's objective of reducing state regulatory scope in certain areas. Limiting the number of entities that can issue securities and promoting international investment practices are also not the aims of NSMIA, which focuses more on domestic regulatory structure than issuance limitations or international considerations.