Exemptions from Registration

Question 1

Who’s responsibility is it to show proof of qualification for an exemption?

Answer 1

The person requesting the exemption. Usually the issuer.

Question 2

Are transactions by fiduciaries, including certain law enforcement agents exempt under provisions of the USA?

Answer 2

Yes

Question 3

Under the Uniform Securities Act (USA) the following are exempt securities…

Answer 3

Government bonds issued by nations with which the US maintains diplomatic relations, such as Canada, are exempt. In addition, securities issued by Canadian political subdivisions are also exempt from registration.

Question 4

Exempt transactions include:

Answer 4

• Isolated nonissue transaction
• transactions between an issuer an an underwriter
• transactions by an executor, administrator, sheriff, marshal, trustee in bankruptcy, guardian or conservator
• any sale or offer to a bank, savings institution, investment company, or aother financial institution
• private placements

Question 5

Can the Administrator require exempt and federal covered securities to file advertising and sales literature?

Answer 5

No

But he may require it from an IPO limited to residents of the state.

Question 6

A non-exempt transaction may take place in the state only if

Answer 6

The security is registered, exempt, or federal covered

Question 7

Private placements are exempt transactions if:

Answer 7

They are offered to no more than 10 retail investors in any consecutive 12-month period.