Securities Registration: Coordination & Qualification
Coordination piggybacks on SEC registration; qualification is state-only.
What is Securities Registration: Coordination & Qualification?
Registration by coordination is used when the issuer is also registering with the SEC under the Securities Act of 1933; the state registration becomes effective at the same moment as the federal one, if conditions are met. Registration by qualification is used for offerings not registered with the SEC - typically intrastate - and becomes effective when the Administrator orders it. Any security can register by qualification. A state registration is generally effective for one year.
Securities Registration: Coordination & Qualification: a worked example
A local bank holding company selling stock only to residents of its state registers by qualification.
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