Title 42 — The Public Health and WelfareRelease 119-73
§9675 Applicability of securities laws
Title 42 › Chapter CHAPTER 103— - COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY › Subchapter SUBCHAPTER IV— - POLLUTION INSURANCE › § 9675
Summary
Members' shares in a risk retention group are exempt from federal registration rules (15 U.S.C. 77e, 78l) but count as securities for anti‑fraud rules (15 U.S.C. 77q, 78j). The group is not an investment company (15 U.S.C. 80a–1), and state blue‑sky laws don't treat them as securities.
Full Legal Text
Title 42, §9675
The Public Health and Welfare — Source: USLM XML via OLRC
(a)The ownership interests of members of a risk retention group shall be considered to be—
(1)exempted securities for purposes of section 77e of title 15 and for purposes of section 78l of title 15; and
(2)securities for purposes of the provisions of section 77q of title 15 and the provisions of section 78j of title 15.
(b)A risk retention group shall not be considered to be an investment company for purposes of the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.).
(c)The ownership interests of members in a risk retention group shall not be considered securities for purposes of any State blue sky law.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The Investment Company Act of 1940, referred to in subsec. (b), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, which is classified generally to subchapter I (§ 80a–1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80a–51 of Title 15 and Tables.
Reference
Citations & Metadata
Citation
42 U.S.C. § 9675
Title 42 — The Public Health and Welfare
Last Updated
Apr 6, 2026
Release point: 119-73