Uniform Securities Act
Encyclopedia
The Uniform Securities Act (USA) is a model statute designed to guide each state in drafting its state securities law. It was created by the National Conference of Commissioners on Uniform State Laws
(NCCUSL).
The purpose of the Uniform Securities Act is to provide model legislation that can be adopted by a state to deal with securities fraud at the state level, supplementing enforcement and regulation efforts of the U.S. Securities and Exchange Commission (SEC). Not all investments are covered federally and not all investment dealers are registered at the federal level, so the SEC does not have authority over all securities and securities transactions. As a result, there is a need for state-level security regulations to protect investors with respect to these securities. The Uniform Securities Act provides model legislation that can be enacted by a state to provide this protection. The state security laws are often known as blue sky law
s.
The Act was first promulgated in 1930, when it was entitled the Uniform Sales of Securities Act of 1930. The 1930 Act met with limited success, enacted by only five jurisdictions. In 1943, the NCCUSL dropped the Act from its list of Uniform Acts.
The Act was substantially revised in 1956, as the Uniform Securities Act of 1956. This revision was much more successful, and was adopted by 37 jurisdictions. The act was revised again in 1985 as the Uniform Securities Act of 1985, and amended in 1988, but few states adopted these changes, and instead continued to operate under the 1956 Act.
The most recent revision of the Act is the Uniform Securities Act of 2002. , the 2002 Act has been enacted in Georgia
, Hawaii
, Idaho
, Indiana
, Iowa
, Kansas
, Maine
, Minnesota
, Missouri
, Oklahoma
, South Carolina
, South Dakota
, Vermont
, Wisconsin
and the US Virgin Islands.
The 2002 Act has been endorsed by the following organizations:
National Conference of Commissioners on Uniform State Laws
The National Conference of Commissioners on Uniform State Laws is a non-profit, unincorporated association commonly referred to as the U.S. Uniform Law Commission. It consists of commissioners appointed by each state, the District of Columbia, the Commonwealth of Puerto Rico and the United States...
(NCCUSL).
The purpose of the Uniform Securities Act is to provide model legislation that can be adopted by a state to deal with securities fraud at the state level, supplementing enforcement and regulation efforts of the U.S. Securities and Exchange Commission (SEC). Not all investments are covered federally and not all investment dealers are registered at the federal level, so the SEC does not have authority over all securities and securities transactions. As a result, there is a need for state-level security regulations to protect investors with respect to these securities. The Uniform Securities Act provides model legislation that can be enacted by a state to provide this protection. The state security laws are often known as blue sky law
Blue sky law
A blue sky law is a state law in the United States that regulates the offering and sale of securities to protect the public from fraud. Though the specific provisions of these laws vary among states, they all require the registration of all securities offerings and sales, as well as of stock...
s.
The Act was first promulgated in 1930, when it was entitled the Uniform Sales of Securities Act of 1930. The 1930 Act met with limited success, enacted by only five jurisdictions. In 1943, the NCCUSL dropped the Act from its list of Uniform Acts.
The Act was substantially revised in 1956, as the Uniform Securities Act of 1956. This revision was much more successful, and was adopted by 37 jurisdictions. The act was revised again in 1985 as the Uniform Securities Act of 1985, and amended in 1988, but few states adopted these changes, and instead continued to operate under the 1956 Act.
The most recent revision of the Act is the Uniform Securities Act of 2002. , the 2002 Act has been enacted in Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
, Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
, Idaho
Idaho
Idaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state....
, Indiana
Indiana
Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...
, Iowa
Iowa
Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...
, Kansas
Kansas
Kansas is a US state located in the Midwestern United States. It is named after the Kansas River which flows through it, which in turn was named after the Kansa Native American tribe, which inhabited the area. The tribe's name is often said to mean "people of the wind" or "people of the south...
, Maine
Maine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...
, Minnesota
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
, Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
, Oklahoma
Oklahoma
Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...
, South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
, South Dakota
South Dakota
South Dakota is a state located in the Midwestern region of the United States. It is named after the Lakota and Dakota Sioux American Indian tribes. Once a part of Dakota Territory, South Dakota became a state on November 2, 1889. The state has an area of and an estimated population of just over...
, Vermont
Vermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...
, Wisconsin
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
and the US Virgin Islands.
The 2002 Act has been endorsed by the following organizations:
- American Bar AssociationAmerican Bar AssociationThe American Bar Association , founded August 21, 1878, is a voluntary bar association of lawyers and law students, which is not specific to any jurisdiction in the United States. The ABA's most important stated activities are the setting of academic standards for law schools, and the formulation...
(ABA) - ABA Business Law and Litigation Sections
- Certified Financial Planner Board of Standards
- Investment Counsel Association of America (ICAA) (now the Investment Adviser Association (IAA))
- National Association of Securities Dealers (NASD)
- New York Stock ExchangeNew York Stock ExchangeThe New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
(NYSE) - North American Securities Administrators AssociationNorth American Securities Administrators AssociationThe North American Securities Administrators Association , founded in Kansas in 1919, is the oldest international investor protection organization. NASAA is an association of state securities administrators who are charged with the responsibility to protect consumers who purchase securities or...
(NASAA) - Securities Industry AssociationSecurities Industry and Financial Markets AssociationThe Securities Industry and Financial Markets Association is a leading securities industry trade group representing securities firms, banks, and asset management companies in the U.S. and Hong Kong. SIFMA was formed on November 1, 2006, from the merger of The Bond Market Association and the...
(SIA)
See also
- Uniform Securities Agent State Law Examination (Series 63)
- The National Securities Markets Improvement Act of 1996The National Securities Markets Improvement Act of 1996The National Securities Markets Improvement Act of 1996 is an amendment to United States federal securities laws in order to promote efficiency and capital formation in the financial markets, and to amend the Investment Company Act of 1940 to promote more efficient management of mutual funds,...
(NSMIA) - National Conference of Commissioners on Uniform State LawsNational Conference of Commissioners on Uniform State LawsThe National Conference of Commissioners on Uniform State Laws is a non-profit, unincorporated association commonly referred to as the U.S. Uniform Law Commission. It consists of commissioners appointed by each state, the District of Columbia, the Commonwealth of Puerto Rico and the United States...
(NCCUSL)
External links
- Final text of the Act
- Investopedia entry for the Uniform Securities Act