
The Arkansas Securities Department had a busy start to 2025, filing four major enforcement actions from Jan. 13–17.
Arkansas was the lead petitioner in two of those, one a $17 million action against Edward Jones and the other an $80 million action against Cash App’s parent company, Block Inc.
The timing of multiple enforcement actions in close succession is unusual, even for the year-end when more cases typically conclude. Some of the cases, like a $106 million action against Vanguard, have been in progress since 2020.
Susannah Marshall, the commissioner of the Arkansas Bank Department and Securities Department, said that leading these large enforcement actions shows that Arkansas “is a leader in the financial services sector,” and that the state has the “strength and the resources to ensure that we have a strong, vibrant and safe business sector.”
Campbell McLaurin, deputy commissioner of the securities department, said that Arkansas’ prominent role also boosts business confidence in the state.
“Plainly put, it’s business confidence, and it’s investor and consumer confidence,” McLaurin said. “Businesses are confident they can be fairly treated by the regulators. Investors can be confident that the decisions they make are safe. And consumers know that the businesses they deal with will treat them well, that there’s a level playing field and that they can make the best decisions for them.”
Marshall said when considering whether to join multistate actions, the department evaluates factors including the number of Arkansas residents affected and the department’s available resources. The department has about 32 staff members, and some of the enforcement actions require “all hands on deck,” Marshall said.
McLaurin, who has been with the department since 2011, emphasized that enforcement actions are used selectively.
“We’re very conscious of creating a hospitable business environment here in Arkansas,” McLaurin said, stating that the number of registrants and licensees in all regulated industries has increased year over year for the past five years.
McLaurin also said that Arkansas’ selection as a lead state in the actions reflects the expertise of its staff.
“When you when you bring in a multistate action, you’re not just dealing with the other side of opposing counsel or the respondent. You also have to make sure that it works for 47 or 50 different jurisdictions,” McLaurin said. “Being a lead state means working with all your colleagues, as well as working to find a settlement with the other side in a way that works for everyone.”
The department’s ability to lead major enforcement actions also stems from an active participation in national regulatory organizations, including the North American Securities Administrators Association and the Conference of State Bank Supervisors (CSBS). Marshall serves on the executive committee of CSBS.
A collaborative approach is crucial, Marshall said. It helps maintain effective oversight of companies operating across state lines.
“Most states could not dedicate the resources on an individual basis,” Marshall said. “It’s critical that we work together as a state system.”
The department’s recent wave of actions mirrors national trends. The U.S. Securities and Exchange Commission released a statement Jan. 17 saying it had filed 200 total enforcement actions in the first quarter of fiscal year 2025, which ran from October through December 2024, including 118 standalone enforcement actions.
And though the securities department has filed multiple enforcement actions, Marshall and McLaurin emphasized it’s just one tool in their arsenal. The department works on several other initiatives, including investor education programs and consumer protection programs.
“The title ‘securities department’ is a little bit of a misnomer,” Marshall said. The agency regulates three main areas: securities activities, non-bank mortgage services and money transmission businesses. This broader scope has become particularly relevant with the rise of digital payment platforms and cryptocurrency services.
“As digital assets proliferate, a lot more activity has come under our jurisdiction, especially within the last five years,” McLaurin said. The growth in digital payment platforms and cryptocurrency services has required the department to adapt its regulatory approach.
“We do see and feel that there is going to be significant increase in volume in that non-depository activity,” Marshall said. “And so it’s very important that we have already have established a strong team to oversee that function.”
Beyond enforcement, the department maintains a significant focus on education and fraud prevention. Two full-time staff members lead investor education initiatives, reaching audiences from elementary schools to senior citizen groups across Arkansas.
The education program, which began in 1998, is self-funded by the first $150,000 of securities enforcement funds received annually. Any additional enforcement funds won from the actions go to the state’s general revenue. Arkansas received $335,000 from the Edward Jones settlement, $109,000 through a settlement with Bayview Asset Management, $1.8 million through the Cash App settlement and a yet to be determined amount from the action against Vanguard.
The educational outreach includes presentations on frauds and scams, cryptocurrency, elder abuse and general investor education.
“An ounce of education is worth a pound of cure,” McLaurin said. “If we can reach people in the state with anti-fraud education and financial literacy education, then we feel like we’re placing ourselves in a better position to prevent harm to Arkansans and build stronger economies.”
The department also maintains an active consumer complaint division, which provides information that may lead to examinations or enforcement actions. Staff members handle calls throughout the day from consumers seeking assistance or reporting concerns about financial firms.
As financial services continue to evolve, the department expects its oversight responsibilities to grow. However, Marshall emphasized that enforcement actions remain just one tool in the department’s regulatory approach.
“It is never our first objective. It is never our preferred outcome,” Marshall said. “But legally this is our responsibility, our authority. The securities department is so much more than than the enforcement action piece, but it is significant that we are able to show the public, the consumers and the citizens of Arkansas that we are here to protect them and serve them.”
Whether through enforcement actions or other programs, McLaurin said the department’s active regulatory role aims to strengthen Arkansas’ position in the financial services sector while protecting consumers.
“Everyone’s working together to achieve these goals,” McLaurin said. “We’re very fortunate to work with expert staff that allows Arkansas to place itself in these lead positions and to be an authority at the national level in financial services regulation.”