What does Nsmia stand for?
National Securities Market Improvement Act of 1996 (NSMIA)
What was the significance of the National Securities Markets Improvement Act of 1996?
An act to amend the Federal securities laws in order to promote efficiency and capital formation in the financial markets, and to amend the Investment Company Act of 1940 to promote more efficient management of mutual funds, protect investors, and provide more effective and less burdensome regulation.
Who created blue sky laws?
Joseph Norman Dolley
The first blue sky law was enacted in Kansas in 1911 at the urging of its banking commissioner, Joseph Norman Dolley, and served as a model for similar statutes in other states.
Who enforces blue sky laws?
At present, the blue sky laws of some forty states are designed under the Uniform Securities Act of 1956. Generally, the SEC (Securities Exchange Commission) regulates and enforces these laws, but each state has its security regulator to enforce these laws.
What is a federal covered advisor?
A federal covered advisor is an investment advisor that is registered with the SEC under the Investment Advisers Act of 1940. An investment advisor must register with the SEC if they have more than $110 million in assets under management.
What is the purpose of Blue Sky laws?
In addition to the federal securities laws, every state has its own set of securities laws—commonly referred to as “Blue Sky Laws”—that are designed to protect investors against fraudulent sales practices and activities.
What states require blue sky filings?
Regulation D 506 State Fees
| State | When to File | Registration Filing Fees |
|---|---|---|
| Alabama | Within 15 days | $300 |
| Alaska | Within 15 days | $600 for one year |
| Arizona | Within 15 days | $250 |
| Arkansas | Within 15 days | 1/10 of 1% of the offering price, with a minimum fee of $100, and a maximum fee of $500 |
Why is it called blue sky law?
The phrase “blue sky laws” comes from the words of Kansas Supreme Court Justice J. N. Dolley, in 1910, who wanted to protect investors from speculative ventures without more basis than “so many feet of blue sky.”
Does the SEC investigate private companies?
Indeed, the SEC has the authority to investigate any companies that raise, or seek to raise, capital from U.S. investors. This includes both registered and unregistered public and private companies, broker-dealers, municipal advisors, investment advisers, investment companies, bankers, funds and pools.
Can broker dealers use testimonials?
Investment advisers charge advisory fees. Broker-dealers are permitted to use testimonials in their advertising.
Who qualifies as an investment adviser?
Who is an Investment Adviser? Section 202(a)(11) of the Act defines an investment adviser as any person or firm that: for compensation; is engaged in the business of; providing advice to others or issuing reports or analyses regarding securities.
What is blue sky violation?
Blue sky laws are state-level, anti-fraud regulations that require issuers of securities to be registered and to disclose details of their offerings. Blue sky laws create liability for issuers, allowing legal authorities and investors to bring action against them for failing to live up to the laws’ provisions.
What does NSMIA stand for?
The National Securities Markets Improvement Act (NSMIA) amended the Investment Company Act of 1940 and the Investment Advisers Act of 1940 and went into effect on Jan. 1, 1997.
What did the NSMIA do for the SEC?
In effect, the NSMIA gave the SEC exclusive jurisdiction to regulate securities firms. In addition, NSMIA added new section 3 (c) (7) of the Investment Company Act to create an alternative exclusion for investment companies that sell their securities solely to investors who are “qualified purchasers”.
Which securities are exempt from NSMIA?
The NSMIA provisions only exempt “covered” securities (nationally traded stocks and mutual funds) from state-level regulation. The National Securities Markets Improvement Act (NSMIA) amended the Investment Company Act of 1940 and the Investment Advisers Act of 1940 and went into effect on Jan. 1, 1997.
What is the NSMIA Act of 1940?
NSMIA amended the Investment Company Act of 1940 and the Investment Advisers Act of 1940 in several important respects and, more significantly, reallocated and rationalized the regulatory responsibilities of federal and state regulators with respect to investment companies and investment advisers.