NOTICE OF PROPOSED CHANGES ON SECURITIES IN THE REGULATIONS OF THE DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT
BRIEF DESCRIPTION
The Department of Commerce, Community, and Economic Development proposes regulation changes to sections dealing with securities in order to clarify and update existing regulations, update fees for certain securities filings, and establish a new registration fee for broker-dealer branch offices.
The Department of Commerce, Community, and Economic Development proposes to adopt regulation changes in Title 3, Chapter 8 of the Alaska Administrative Code, dealing with securities, including the following:
(1) 3 AAC 08.011 is proposed to be amended to clarify when an agent application is considered to be abandoned.(2) 3 AAC 08.015 is proposed to be amended by establishing a $75 annual registration fee for a broker-dealer branch office.
(3) 3 AAC 08.075 is proposed to be added to require a registered person to fully cooperate with the administration during a determination of whether a securities violation has occurred under AS 45.55 and that failure to do so may constitute a violation and be grounds for denial, suspension, or revocation of registration.
(4) 3 AAC 08.085 is proposed to be amended to clarify that notice filings for mutual funds are not effective in Alaska until they have become effective with the Securities and Exchange Commission (SEC). This section is proposed to be amended to eliminate references to a filing fee option for an automatic one-year extension and to clarify that renewals for these filings will not be accepted more than 60 days prior to their expiration.
(5) 3 AAC 08.222 is proposed to be amended to conform to the North American Securities Administration Association’s (NASAA) model rules on suitability standards.
(6) 3 AAC 08.230 is proposed to be amended to clarify that the administrator may request additional information to be submitted relating to a filing and to clarify when an application for registration or exemption is terminated, abandoned, or withdrawn.
(7) 3 AAC 08.506 is proposed to be amended to clarify that an issuer who has filed an SEC Form D may still choose to claim an applicable state exemption. This section is proposed to be amended to eliminate references to a filing fee option for an automatic one-year extension and to clarify that renewals for these filings will not be accepted more than 60 days prior to their expiration.
(8) 3 AAC 08.900 is proposed to be amended to require applicants to file advertising material with the administrator ten days, rather than five days, prior to use or dissemination and gives the administrator ten days, rather than five days, to disallow the advertising. This section is proposed to be amended to include websites, social media and portals/intermediaries.
(9) 3 AAC 08.920 is proposed to be amended to eliminate expedited review and fees for filings and refundable portions of filing fees. This section is proposed to be amended to eliminate a filing fee option for an automatic one-year extension. This section is proposed to be amended to raise fees for an interpretative opinion under AS 45.55.970(e) from $100 to $250. This section is proposed to be amended to raise fees for offer to pay notices under AS 45.55.900(b)(19) from $50 to $250.
(10) 3 AAC 08.950(74) is proposed to be amended by adding a definition for “institutional buyer.”
(11) Various other provisions throughout the chapter are proposed to be amended to correct outdated or incorrect citations to federal law.
You may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by submitting written comments to:
Emily Gaffney, Regulations Specialist
Division of Banking and Securities
Department of Commerce, Community, and Economic Development
P.O. Box 110807
Juneau, AK 99811-0807
Additionally, the Department of Commerce, Community, and Economic Development will accept comments by facsimile at (907) 465-1230 and by electronic mail at emily.gaffney@alaska.gov. Comments may also be submitted through the Alaska Online Public Notice System, by accessing this notice on the system and using the "comment" link. The comments must be received no later than 4:30 p.m. on October 12, 2015.
You may submit written questions relevant to the proposed action to Emily Gaffney by electronic mail at emily.gaffney@alaska.gov or by mail at P.O. Box 110807, Juneau, AK 99811-0807. The questions must be received at least 10 days before the end of the public comment period. The Department of Commerce, Community, and Economic Development will aggregate its response to substantially similar questions and make the questions and response available at www.commerce.alaska.gov/web/dbs/Securities.aspx and on the Alaska Online Public Notice System. The Department of Commerce, Community, and Economic Development may, but is not required to, answer written questions received after the 10-day cut-off date and before the end of the comment period.
If you are a person with a disability who needs a special accommodation in order to participate in this process, please contact Emily Gaffney at (907) 465-6338 no later than October 5, 2015 to ensure that any necessary accommodations can be provided.
A copy of the proposed regulation changes and material proposed for adoption by reference is available on the Alaska Online Public Notice System or on the Division of Banking and Securities website at www.commerce.alaska.gov/web/dbs/Securities.aspx. You may also request a copy by contacting Emily Gaffney at (907) 465-6338 or P.O. Box 110807, Juneau, AK 99811-0807.
After the public comment period ends, the Department of Commerce, Community, and Economic Development will either adopt the proposed regulation changes or other provisions dealing with the same subject, without further notice, or decide to take no action. The language of the final regulations may be different from that of the proposed regulations. You should comment during the time allowed if your interests could be affected.
Statutory Authority: AS 45.55.950
Statutes Being Implemented, Interpreted, or Made Specific: AS 45.55.040; AS 45.55.050; AS 45.55.060; AS 45.55.075; AS 45.55.110; AS 45.55.120; AS 45.55.139; AS 45.55.150; AS 45.55.170; AS 45.55.910; AS 45.55.915; AS 45.55.950; AS 45.55.980; AS 45.55.990
Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation.
DATE: September 10, 2015 Emily Gaffney, Regulations Specialist
The Department of Commerce, Community, and Economic Development, Division of Banking and Securities keeps a list of individuals and organizations interested in its regulations. Those on the list will automatically be sent a copy of all of the Division’s Notices of Proposed Regulations Changes. To be added to or removed from the list, send the request to:Division of Banking and Securities
Department of Commerce, Community, and Economic Development
P.O. Box 110807
Juneau, AK 99811-0807
Please include your name and either your e-mail address or mailing address, as you prefer for receiving notices.
ADDITIONAL REGULATION NOTICE INFORMATION
(AS 44.62.190(d))
1. Adopting agency: Department of Commerce, Community, and Economic Development
2. General subject of regulation: Securities.
3. Citation of regulation: 3 AAC 08.011; 3 AAC 08.015; 3 AAC 08.075; 3 AAC 08.222; 3 AAC 08.230; 3 AAC 08.506; 3AAC 08.900; 3 AAC 08.920; 3 AAC 08.950;
4. Department of Law file number: JU2015200760
5. Reason for the proposed action: Update and clarify various outdated sections.
6. Appropriation/Allocation: None
7. Estimated annual cost to comply with the proposed action to:
A private person: Increase fees for offer to pay notices from $50 to $250; increase fees for interpretative opinion requests from $100 to $250; new $75 fee for registering a broker-dealer branch; and elimination of a $100 filing fee discount every two years by opting to pay for a one-year automatic extension at the time of filing.
Another state agency: None
A municipality: None
8. Cost of implementation to the state agency and available funding (in thousands of dollars): No costs are expected in FY2016 or in subsequent years.
9. The name of the contact person for the regulation:Emily Gaffney, Regulations Specialist
Division of Banking and Securities
Telephone: (907) 465-6338
E-mail address: emily.gaffney@alaska.gov
10. The origin of the proposed action: Division of Banking and Securities
11. Date: September 10, 2015
Prepared by: Emily Gaffney, Regulations Specialist