Statement on Signing the Government Securities Act of 1986
I have signed H.R. 2032, the Government Securities Act of 1986. This important piece of legislation, which represents the culmination of 18 months of cooperative, bipartisan efforts by the Congress and the administration, will help assure the continued safety and efficiency of the markets for United States Treasury and other government-related debt. The Government Securities Act, for the first time, establishes requirements for registration, financial responsibility, customer protection, recordkeeping, and audit of brokers and dealers who transact business solely in government securities. It will be possible to know who these government securities brokers and dealers are and to assure that they are persons of integrity and appropriate financial standing. By limiting the areas of regulation to those that will have the greatest positive impact, the act will enhance the market's integrity without impairing its essential efficiency.
The choice of the Department of the Treasury as rulemaker will ensure that regulations are carried out in a manner that minimizes confusion and takes into account the need to finance the Federal debt at the lowest possible cost to taxpayers. Careful and judicious implementation of this legislation will benefit both the taxpayers in general and those who individually invest in government securities. Therefore, I am pleased to sign this act.
Note: H.R. 2032, approved October 28, was assigned Public Law No. 99 - 571.