Corporate & Securities Law

By Jim Hamilton

Maine Adopts Electronic Form D Requirements and Caution for Third Party Brokers at Banks

Electronic Form D Requirements. Issuers intending to make a Rule 506 offering of federal covered securities in Maine under Section 18(b)(4)(D) of the Securities Act of 1933 must file with the Maine Securities Division a hard copy of the SEC-filed electronic Form D, following the SEC's adoption of electronic filing of Form D on March 16, 2009. Issuers are no longer required to include the Appendix to Form D or a Consent to Service of Process.

Broker-dealers providing third party brokerage services on financial institution premises. Broker-dealers providing third party brokerage services on financial institution premises are prohibited under the Maine Banking Code and Uniform Securities Act from marketing themselves as "a division" of the financial institution. The broker-dealers and financial institutions are separate entities providing separate services on a financial institution's premises and, therefore, broker-dealers marketing themselves as part of the financial institution is considered to misleads customers.

Please see http://www.mainesecuritiesregs.org/

Full post as published by Jim Hamilton's World of Securities Regulation on September 23, 2009 (boomark / email).