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Has your company failed to register securities?

| Dec 11, 2018 | Regulatory Work |

In the state of Kentucky and in the rest of the United States, companies are held to the Registration Under the Securities Act of 1933. This law means that companies must provide certain information so that transparency is maintained. This information is submitted through the registration of securities.

If your company failed to register securities in the state of Kentucky, it is important that you take the time to understand the law. There can be penalties that result from this failure; therefore, it is vital that your company takes immediate action.

What information should be filed?

In order to make a successful registration of securities, your company must provide complete and accurate information to the U.S. Securities and Exchange Commission (SEC). This information includes a description of the property held by the company as well as the type of business it engages in, the security being offered as a product, complete financial accounts and management information.

What are the penalties for failing to register securities?

In recent years, the SEC has become more aggressive in its enforcement of registration of securities failures. It is very common for a company to find themselves under investigation by the SEC because they made some honest mistakes. Financial penalties frequently hit six or seven figures for companies that have not fulfilled their legal obligations.

Registering securities punctually, accurately and competently is fundamental for any company. If you are concerned about being subject to an investigation by the SEC, it is important that you look deeper into the law so that you are familiar with the way the process works.