The states have not been shy in touting their record when it comes to prosecution of securities violations. State securities regulators in 2010 conducted more than 7,000 investigations, leading to nearly 3,500 enforcement actions, including more than 1,100 criminal actions, John Morgan, the Securities Commissioner of Texas, told Congress earlier this month. The numbers suggest that the state regulators are up to the job and, according to Morgan, "states have been preparing for this switch for two years and look forward to accepting the increased regulatory oversight of mid-sized investment advisers."