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Exceptional and accessible legal representation across Kentucky and Nationwide


What exactly is regulatory work and what’s the role of the state?

On Behalf of | Aug 2, 2019 | Regulatory Work |

The U.S. Securities and Exchange Commission (SEC) is responsible for supervising the enforcement of federal securities laws. Kentucky and every other state in the country have their respective agencies that perform similar duties as well. They each regulate the sale or exchange of stocks, bonds and other financial instruments that can be traded for a monetary value within their borders. The work of both of these agencies is referred to as regulatory work.

State regulators are generally only authorized by the federal government to supervise investments of $25 million or less. Any amounts higher than that are handled by federal authorities.

Not just anyone can oversee the management of such valuable securities either.

Those advisors who manage securities of significant value such as this are required to incorporate themselves in the state where their business is headquartered. Anyone wishing to become an investment adviser must also submit a Uniform Application for Investment Adviser Registration and Report by Exempt Reporting Adviser (Form ADV) to state regulators to be authorized to sell these.

State regulators are also responsible for providing prospective investors with information about companies operating in the state. They maintain a Central Registration Depository that keeps track of all companies that are authorized to sell securities in the state. They also record disciplinary histories of certain brokerages or brokers.

There’s a lot of regulatory red tape that you must cross through to securities up for sale here in Kentucky and throughout the U.S. If you make the wrong move, then you may unnecessarily expose your business to a regulatory investigation.

A regulatory work attorney here in Louisville can provide you with experienced financial services industry representation no matter what stage you’re at in the securities exchange process so that you can avoid this.

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