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Can you summarize ALAC Chapter 830-X-2?
Alabama Securities Commission > GENERAL RULES
Short Summary
This legal document provides definitions for terms used in the Alabama Administrative Code related to the Alabama Securities Commission and general rules. It clarifies that the terms used in the Rules and Regulations have the meaning defined in the Alabama Securities Act, unless otherwise specifically stated. The document also establishes that a rule or regulation defining a term without express reference to the Act or the Rules and Regulations defines such term for all purposes as used in both the Act and the Rules and Regulations. It further states that information or documents obtained by members and employees of the Commission during examinations or investigations are deemed confidential, unless made a matter of public record. Disclosure of confidential information or documents to anyone other than a member or employee of the Commission is prohibited, unless authorized by the Commission and not contrary to the public interest. If served with a subpoena requiring disclosure, a member or employee of the Commission must appear in court and only disclose or produce the requested information or documents upon specific direction from a court of competent jurisdiction. The document also provides definitions for various terms such as ‘associated person’, ‘home office’, ‘principal office’, ‘branch office’, ‘material information’, ‘commission or remuneration’, and ‘principal’. It specifies the standards for determining whether an office or the activities of a person associated with an applicant or registrant constitute a branch office. ‘Material information’ or ‘adequate information’ is defined as the information required for full disclosure of financial and other information about a company and/or its securities. The document also governs the advertising and sales literature used in connection with the offering of securities registered under the Alabama Securities Act. It requires authorization by the Alabama Securities Commission for all such advertisements and sales literature, unless they meet the requirements and rules of the National Association of Securities Dealers or the Securities Act of 1933, or contain limited information. Deceptive or misleading sales material is prohibited, and an example of deceptive practice is provided. The document also outlines the requirements for submitting applications for registrations with the Commission.
Whom does it apply to?
Members and employees of the Alabama Securities Commission, individuals or entities associated with an applicant or registrant, advertisers and sellers of securities registered under the Alabama Securities Act
What does it govern?
Alabama Administrative Code related to the Alabama Securities Commission and general rules
What are exemptions?
No specific exemptions are mentioned
What are the Penalties?
No specific penalties for non-compliance or violation of the Rules and Regulations are mentioned
Jurisdiction
Alabama