Preempt the ability of US states and their political subdivisions to require state-level registration or qualification of covered securities.
Though covered securities are exempt from US state registration and qualification requirements, states may require notice filings and filing fees with respect to offerings of covered securities, subject to certain exceptions for national securities exchange-listed covered securities. In addition, NSMIA does not preempt states' anti-fraud enforcement authority with respect to covered securities.
NSMIA also places limits on the ability of US states to regulate certain broker-dealers and investment advisers, but does not completely preempt the ability of the states to regulate these entities operating within their jurisdiction.