The nation's state securities regulators have created a model for states looking to create restitution funds for the victims of securities fraud.

The North American Securities Administrators Association (NASAA) said the model legislation serves as a blueprint for creating a financial assistance program for the victims of securities law violations who are awarded restitution, but who do not receive full payment for their losses.

“State securities regulators are focused on protecting the interests of investors and this model act provides states with one more a tool to help securities fraud victims on their way to financial recovery,” Lisa A. Hopkins, NASAA president and West Virginia senior deputy securities commissioner, said in a statement issued today.

The model act establishes a state securities restitution assistance fund, outlines eligibility requirements for victims seeking restitution assistance, sets payment caps on the amount of restitution assistance awards, prohibits and forfeits awards in certain circumstances, and provides for recovery mechanisms, the NASAA press release said.

It would also double restiution for victims who meet certain criteria to be considered vulnerable persons, including age and other factors.

The model used similar legislation enacted in Indiana, Montana, Vermont, Kansas and Maine as a guide, NASAA said.

Indiana and Montana created their restitution funds nearly a decade ago and have reported successful results, NASAA said, adding, "since the inception, Indiana has issued approximately $1 million in restitution assistance awards to 102 claimants, and Montana has awarded approximately $1.8 million to 134 claimants. The average age of a restitution recipient was 64 years old in Indiana, and 82% of restitution recipients were over 60 years old in Montana."

The model act was created by NASAA’s board-level state legislation committee, led by Montana Deputy Securities Commissioner Lynne Egan, and the association's restitution assistance working group, led by Karla Black, deputy securities administrator and general Counsel with the Maine Office of Securities, NASAA said.

“We look forward to the model act being enacted and implemented in jurisdictions throughout the United States,” Egan said.