Securities are also registered. Scott said the Gulley case proved the value of the SOS s ongoing audit program which covers a certain percentage of brokerage and investment advisor firms in the state each year. All of the audits don t reveal results like this, but there are other benefits to the audit program, Scott said. In other situations, it just serves to keep people on their toes and make them realize there is a regulatory authority that is going to hold them to standards of the law. The SOS office is part of a nationwide computerized registry of investment counselors.
Information provided can include any disciplinary action taken against a investment advisor.
Scott said there are protections for people who have been defrauded. The SOS s office has been in touch with Minnesota Mutual, and has been assured that the company s intent is to take care of its investors. Gulley was an agent for a large national company, Scott said. If the company was defunct or not reputable, these people would be in a lot worse shape. But I am still very concerned for the investors until everything is taking care of, and these people are made whole.