Exempt Securities

Securities exempt from state registration - never from antifraud.

Uniform Securities Act & Registration Series 65 · Section 4

What is Exempt Securities?

Include US government and agency securities; municipal securities; securities of foreign governments with which the US has diplomatic relations; securities of banks, savings institutions, trust companies and credit unions; insurance company securities (other than variable products); regulated public utilities and common carriers; nonprofit religious, educational and charitable issuers; short-term, highly rated commercial paper; and federal covered securities. The exemption attaches to the security itself.

Exempt Securities: a worked example

Selling Treasury bonds requires no state registration of the bonds - but lying about them is still fraud.

What is the difference between Exempt Securities and Exempt Transactions?

Exempt security = the security itself never needs registration. Exempt transaction = a normally registrable security is sold in circumstances that don't require it.

Often confused with Exempt Transactions - see Exempt Securities vs Exempt Transactions side by side.

Study this term Start a study session

More terms in Uniform Securities Act & Registration

Uniform Securities Act (USA) The model state securities law most states' 'blue sky' statutes are based on. State Securities Administrator The official or agency that enforces a state's securities act. Person (USA Definition) Anyone who can be held legally responsible - individuals and organizations. Investment Adviser (USA Definition) Advises on securities, as a business, for compensation. Excluded from the Investment Adviser Definition Banks, incidental professionals, broker-dealers, and publishers are not advisers at all. Exemptions from State Adviser Registration An adviser with no office in the state and only institutional or very few clients there. De Minimis Exemption No place of business in the state and fewer than 6 clients there in 12 months. Federal Covered Adviser An adviser registered with the SEC rather than the states.

All Uniform Securities Act & Registration terms · Full glossary