Exempt Reqmnt Register Security If Notice Filing

Securities - registration statement exemption - mutual fund offerings - notice filing. Existing law generally requires that, for a person to issue a security, either the security or the person must be exempt or the person must register the security with the securities commissioner. The federal "National Securities Markets Improvement Act of 1996" (NSMIA) preempts certain provisions of the "Colorado Securities Act" that require the filing of a registration statement and the collection of fees for mutual fund offerings. NSMIA permits state securities regulators to require only notice filing and the payment of a required fee for mutual fund offerings.

Sections 1, 2, and 5 of the act eliminate the registration requirement, and section 3 substitutes a notice filing requirement. The notice is valid for 12 months, must be accompanied by a fee established by the securities commissioner, and can be renewed.

(Note: This summary applies to this bill as enacted.)