Title XXV, Business and Financial Institutions

To qualify for a license, an applicant shall satisfy the following requirements: (1) The applicant shall deposit with the commissioner one (1) of the following instruments: (a) An irrevocable letter of credit in the following amounts: 1. If an applicant has only one (1) business …

Each application for a license shall be in writing and under oath to the department, in a form prescribed by the commissioner, and shall include the following: (1) The legal name, residence, and business address of the applicant and, if the applicant is a partnership, association…

Each application for a license shall be accompanied by: (1) An investigation fee of five hundred dollars ($500) for Kentucky residents and five hundred dollars ($500) for nonresidents of Kentucky for each location which shall not be subject to refund but which, if the license is …

License period -- Licensee's duty to notify department -- Transfer or assignment of license -- Abandonment. (1) Upon the filing of a completed application in a form prescribed by the commissioner, accompanied by the fee and documents required in KRS 286.9-060, the commissioner sh…

The commissioner shall not issue additional deferred deposit service business licenses.

In addition to the requirements contained in this subtitle, every licensee shall comply with all applicable federal and state laws.

Every person licensed under this subtitle shall maintain an agent in this Commonwealth for service of process. The name, address, telephone number, and electronic mail address of the agent shall be filed with the application. The commissioner shall be notified in writing by the l…

(1) Each licensee shall keep and use in its business any books, accounts, financial reports, and records the commissioner may require to administer and regulate the provisions of this subtitle and the administrative regulations promulgated under this subtitle. Every licensee shal…

commissioner. (1) Any person aggrieved by the conduct of a licensee under this subtitle in connection with the licensee's regulated activities may file a written complaint with the commissioner who may investigate the complaint. (2) In the course of the investigation initiated by…

(1) Each license may be renewed for the ensuing twelve (12) month period upon the timely submission of a completed renewal application and payment to the commissioner annually on or before December 31 of each year of the following fees: (a) Five hundred dollars ($500) for the fir…

examination and fee -- Examination, inspection, and confidentiality of records -- Powers of commissioner. (1) The commissioner may adopt reasonable administrative regulations, not inconsistent with law, for the enforcement of this subtitle. (2) To assure compliance with the provi…

(1) (a) Any fee charged by a licensee for cashing a check or entering into a deferred deposit transaction shall be disclosed in writing to the bearer of the check prior to cashing the check or entering into a deferred deposit transaction, and the fee shall be deemed a service fee…

Acceptance, payment, and deposit of checks. (1) Each licensee who engages in deferred deposit transactions shall give the customer the disclosures in writing required by the Consumer Credit Protection Act (15 U.S.C. sec. 1601). Proof of this disclosure shall be made available to …

(1) Each licensee shall file an annual report with the commissioner by March 1 of each year, containing the following information: (a) The names and addresses of each person owning a controlling interest in each license; (b) The location of all places of business operated by the …

suspicious transaction reporting. (1) Every licensee required to register with the United States Treasury Financial Crimes Enforcement Network shall file with the commissioner all reports by federal currency reporting, recordkeeping, and suspicious transaction reporting requireme…

(1) As used in this section, "registry" means the State Regulatory Registry, LLC, or its successor organization. (2) When an application, report, or approval request is required under this subtitle to be filed with the commissioner, the commissioner may require, by administrative…

suspension, expiration, or surrender of license -- Circuit Court remedy. (1) The commissioner may suspend, revoke, place on probation, condition, restrict, refuse to issue or renew a license, accept the surrender of a license in lieu of revocation or suspension, order that refund…

revocation of license. (1) The commissioner may file an administrative complaint against any person if it appears on grounds satisfactory to the commissioner that a potential or actual violation of this subtitle has been committed and when the person may be subject to the penalti…

license. (1) The commissioner may enter an emergency order suspending, conditioning, limiting, or restricting a license issued under this subtitle without notice or hearing if it appears upon grounds satisfactory to the commissioner that the licensee has engaged or is engaging in…

(1) The commissioner may enter into a consent order with another person at any time for the purpose of resolving a matter arising under this subtitle. A consent order shall be signed by the person to whom it is issued or by the person's authorized representative and shall indicat…

The commissioner may stay, suspend, or postpone the effective date of an order issued under this subtitle, pending the administrative proceeding and the issuance of a final order resulting from the proceeding, upon written request by the affected person or licensee.

accessing data. (1) (a) A common database with real-time access through an internet connection for deferred deposit service business licensees implemented in accordance with this subtitle shall be accessible to the department and a deferred deposit service business licensee to ve…

(1) Any person who intentionally violates any provision of this subtitle, or violates any administrative regulation promulgated hereunder, or violates any order of the commissioner, shall be guilty of a Class A misdemeanor. Each transaction in violation of this subtitle and each …

(1) The commissioner may levy a civil penalty against a person who violates any provision of, or administrative regulation promulgated under, this subtitle or any order issued by the commissioner under this subtitle. (2) The civil penalty shall be not less than one thousand dolla…

When used in this chapter, unless the context otherwise requires: (1) "Agent" means any individual other than a broker-dealer who represents a broker- dealer or issuer in effecting or attempting to effect purchases or sales of securities; (2) "Broker-dealer" means any person enga…

(1) KRS 292.320(1), 292.330, 292.340, 292.450, and 292.480 apply to persons who sell or offer to sell when an offer to sell is made in this state, or an offer to buy is made and accepted in this state. (2) KRS 292.320(1), 292.330, and 292.450 apply to persons who buy or offer to …

(1) It is unlawful for any person, in connection with the offer, sale, or purchase of any security, directly or indirectly: (a) To employ any device, scheme, or artifice to defraud; (b) To make any untrue statement of a material fact or to omit to state a material fact necessary …

(1) There is hereby created in the State Treasury a trust and revolving fund designated as the "securities fraud prosecution and prevention fund." (2) The commissioner may designate that all or a portion of the civil fines imposed for violations of this chapter or administrative …

order of commissioner. (1) Except as otherwise provided in this section, the commissioner may by rule or order require the filing of any prospectus, pamphlet, circular, form letter, advertisement, or other sales literature, radio, television, or other advertising communication ad…

(1) The commissioner may require the filing of any of the following documents with respect to a covered security under Section 18(b)(2) of the Securities Act of 1933: (a) Prior to the initial offer of such covered security in this state, all documents that are part of a current f…

investment adviser representatives. (1) It is unlawful for any person to transact business in this state as a broker-dealer unless the person is registered under this chapter as a broker-dealer or is exempt from registration under subsection (2) of this section. (2) The following…

(1) As used in this section: (a) "3(c)(1) fund" means a qualifying private fund that is eligible for the exclusion from the definition of an investment company under Section (3)(c)(1) of the Investment Company Act of 1940, 15 U.S.C. sec. 80a-3(c)(1), as amended; (b) "Private fund…

(1) A person shall apply for registration as a broker-dealer, agent, investment adviser, or investment adviser representative by filing an application containing the information required in a form designated by administrative regulation or order under this chapter, by filing a co…

(1) It is unlawful for a covered adviser to transact business in this state as a covered adviser unless the covered adviser has made a notice filing under subsection (2) of this section or is exempt from the requirement to make a notice filing under subsection (3) of this section…

or amendment to registration or notice filing -- Name change by registrant. (1) Pursuant to subsection (2) or (3) of this section, a broker-dealer or investment adviser may succeed to the unexpired portion of the current registration of another broker-dealer or investment adviser…

registration or application by commissioner -- Temporary registration -- Withdrawal of registration or notice filing. (1) If an agent registered under this section terminates employment by or association with a broker-dealer or issuer, then the broker-dealer or issuer shall promp…

(1) The fee for initial or renewal registration shall be, for: (a) A broker-dealer, one hundred twenty dollars ($120); (b) An investment adviser, one hundred dollars ($100); (c) An agent, fifty dollars ($50); (d) An investment adviser representative, fifty dollars ($50); and (e) …

commissioner -- Administrative regulations -- Central depository system for documents -- Investment advisers -- Required policies and procedures. (1) (a) Every registered broker-dealer, firm employing issuer agents, and investment adviser shall make and keep all accounts, corresp…

and for disciplinary action -- Summary order -- Emergency hearing -- Order in accordance with KRS Chapter 13B. (1) The commissioner may deny, refuse to renew, suspend, or revoke the registration of any broker-dealer, agent, investment adviser, or investment adviser representative…

(1) As used in this section: (a) "Approved IAR continuing education content" means the materials, written, oral, or otherwise: 1. That have been approved by NASAA or its designee; and 2. Which make up the educational program provided to an investment adviser representative under …

(1) It is unlawful for any person to offer or sell any security in this state, unless the security is registered under this chapter, or the security or transaction is exempt under this chapter, or the security is a covered security. (2) (a) A business that offers to provide staki…

(1) The following securities may be registered by notification, whether or not they are also eligible for registration by coordination under KRS 292.360: (a) Any security whose issuer and any predecessors have been in continuous operation for at least five (5) years if: 1. There …

(1) Any security for which a registration statement under the Securities Act of 1933 or an offering statement under Regulation A of the Securities Act of 1933 has been filed with the Securities and Exchange Commission in connection with the same offering may be registered by coor…

(1) Any security may be registered by qualification. (2) A registration statement under this section shall contain the following information and be accompanied by the following documents, in addition to payment of the registration fee prescribed in KRS 292.380 and, if required un…

(1) Except as otherwise expressly provided in this chapter, a registration statement under this chapter becomes effective when the commissioner so orders. The commissioner may require as a condition of registration under this chapter that a prospectus containing any designated pa…

(1) The commissioner may issue a stop order denying effectiveness to, or suspending or revoking the effectiveness of, any registration statement if he finds that the order is in the public interest and that: (a) The registration statement as of its effective date or as of any ear…

KRS 292.340 to 292.390 shall not apply to any of the following: (1) Any security, including a revenue obligation, issued or guaranteed by the United States, any state, any political subdivision of a state, or any agency or corporate or other instrumentality of one (1) or more of …

Appeal. (1) Except as expressly provided, KRS 292.330 to 292.390 shall not apply to any of the following transactions: (a) Any isolated nonissuer transaction, whether effected through a broker-dealer or not; (b) Any nonissuer distribution of an outstanding security by a registere…

January 1, 2015 -- Conditions -- Application of KRS 292.410(3) and (4). (1) Except as expressly provided in this section and KRS 292.412, KRS 292.330 to 292.390 shall not apply to the offer or sale of a security after July 1, 2015, by the issuer of the security if all of the foll…

(1) This section applies to registrants operating an Internet Web site pursuant to KRS 292.411(1)(r). (2) Broker-dealers registered pursuant to KRS 292.330 and operating an Internet Web site, pursuant to KRS 292.411(1)(r), shall make an annual notice filing with the department on…