State Administrator
Contents
Deciphering the Role of State Administrators in Securities Regulation
Unveiling the State Administrator
A state administrator, whether a government entity or regulatory agency, holds the critical responsibility of overseeing and enforcing state-level regulations concerning securities transactions. With each state in the United States guided by the Uniform Securities Act, state administrators diligently safeguard investors from potential securities fraud occurring at the state level.
Understanding the State Administrators' Role
Much akin to the Securities and Exchange Commission (SEC) at the federal level, state administrators focus on matters beyond the SEC's jurisdiction. Their duties encompass monitoring, barring, censuring, or suspending entities or individuals found violating the Uniform Securities Act, which covers various misconducts like securities violations and unethical business practices.
Navigating Blue Sky Laws
State administrators enforce what are commonly referred to as Blue Sky Laws, unique to each state and devised to shield investors from deceptive sales practices within their jurisdictions. These laws often necessitate companies to register their securities offerings before sale and regulate the licensing of brokerage firms and their personnel.
Special Considerations in Securities Oversight
In addition to overseeing securities offerings and licensing, state administrators extend their purview to investment advisors managing less than $100 million. These advisors must register with the state's securities agency and file Form ADV. Furthermore, state administrators serve as repositories of vital information, from company clearances for selling securities to brokers' disciplinary histories.