47-31B-605 Rules, forms, orders, interpretive opinions, and hearings.
Rules, forms, orders, interpretive opinions, and hearings.
(a) Issuance and
adoption of forms, orders, and rules. The director may:
Issue forms and orders and, after notice and comment, may adopt and amend rules
necessary or appropriate to carry out this chapter and may repeal rules, including rules and
forms governing registration statements, applications, notice filings, reports, and other
By rule, define terms, whether or not used in this chapter, but those definitions may not
be inconsistent with this chapter; and
By rule, classify securities, persons, and transactions and adopt different requirements for
(b) Findings and cooperation. Under this chapter, a rule or form may not be adopted or amended,
or an order issued or amended, unless the director finds that the rule, form, order, or amendment is
necessary or appropriate in the public interest or for the protection of investors and is consistent with
the purposes intended by this chapter. In adopting, amending, and repealing rules and forms, § 47-31B-608 applies in order to achieve uniformity among the states and coordination with federal laws
in the form and content of registration statements, applications, reports, and other records, including
the adoption of uniform rules, forms, and procedures.
(c) Financial statements. Subject to Section 15(h) of the Securities Exchange Act and Section
222 of the Investment Advisers Act of 1940, the director may require that a financial statement filed
under this chapter be prepared in accordance with generally accepted accounting principles in the
United States and comply with other requirements specified by rule adopted or order issued under
this chapter. A rule adopted or order issued under this chapter may establish:
Subject to Section 15(h) of the Securities Exchange Act and Section 222 of the
Investment Advisors Act of 1940, the form and content of financial statements required
under this chapter;
Whether unconsolidated financial statements must be filed; and
Whether required financial statements must be audited by an independent certified public
(d) Interpretative opinions. The director may provide interpretative opinions or issue
determinations that the director will not institute a proceeding or an action under this chapter against
a specified person for engaging in a specified act, practice, or course of business if the determination
is consistent with this chapter. A fifty dollar fee is required for interpretative opinions and no action
(e) Effect of compliance. A penalty under this chapter may not be imposed for, and liability does
not arise from conduct that is engaged in or omitted in good faith believing it conforms to a rule,
form, or order of the director under this chapter.
(f) Presumption for public hearings. A hearing in an administrative proceeding under this chapter
must be conducted in public unless the director for good cause consistent with this chapter
determines that the hearing will not be so conducted.
Source: SL 2004, ch 278, § 43.