Federal Securities Acts

Question 1

What securities are exempt from registration 33 Act?

Answer 1

• Government securities
• Regulated by federal agency (banks and railroads)
• Insurance policy
• Nonprofit organization
• Debt maturing within 9 months (known as commercial paper)

Question 2

What SEC is responsible for ?

Answer 2

• Administering federal securities laws
• Regulating brokers
• Issuing rules on details of retaining workpapers and other relevant records connected with audits or reviews
• ability to de-list any issuer not in compliance with SOX

Question 3

Exempt transactions in 33 Act?

Answer 3

• Small issues under Regulation A
• Private placements under Regulation D
• Splits, dividends, and other exchanges with existing shareholders without charge
• Intrastate offers
• Casual sales by parties other than issuers

Question 4

Exemptions (ACID - BRAINS)

Answer 4

• Regulation A - small offering
• Commercial paper or Casual sales
• Intrastate offerings
• Regulation D - Private placement offerings (504-505-506)
• Brokerage transactions
• Regulated industries (Saving and loans)
• Agencies of the Gov. (Railroads, Municipal bonds)
• Insurance contracts/Policies
• Not for profit ( charity/church)
• Stock dividends and Splits