| Rule Number: |
21P029 |
| Title: |
Rule No. S-2016-01, Vermont Securities Regulations (Revised 2021). |
|
Type:
|
Standard |
|
Status:
|
Adopted |
| Agency: |
Department of Financial Regulation
|
| Legal Authority: |
8 V.S.A. §§ 10, 11 and 15; 9 V.S.A. § 5606(a); and 9 V.S.A. § 5616(j). |
| Summary:
| The proposed revisions amend the Vermont Securities Regulation to improve readability and internal consistency, and to ensure that it is drafted in a manner consistent with model laws and regulations promulgated by the North American Securities Administrators Association (NASAA), federal securities laws and regulations, and to the extent possible, with the laws and regulations of neighboring states. Substantive changes include: adopting the NASAA model rule requiring investment advisers to complete continuing education requirements annually, adopting part of the NASAA model rule requiring investment advisers to adopt a code of ethics, requiring investment advisers to establish written policies/procedures to ensure protection of vulnerable adults from financial exploitation, and setting forth the procedures for allocating money from the Vermont Financial Services Education and Victim Restitution Special Fund established in 9 V.S.A. § 5616 (Fund) to the victims of securities violations in Vermont. |
| Persons Affected:
| Investment advisers and broker-dealers registered in Vermont, as well as their representatives and agents; issuers and offerors of securities in Vermont; Vermonters who are customers of investment advisers and broker-dealers; and Vermonters who otherwise invest in securities. |
| Economic Impact:
| The Department anticipates that the proposed amendments will have an overall positive economic impact on Vermonters who invest in securities, while having relatively small costs to investment advisers. Investment advisers will incur modest costs to complete the continuing education requirements, adopt a code of ethics, and establish written policies/procedures to ensure protection of vulnerable adults from financial exploitation. For example, FINRA offers similar continuing education e-learning courses for $45 for one year access to a library of over 110 e-learning courses: https://www.aiinsight.com/finra-e-learning/. The Department views the small fees associated with the continuing education requirements to be worthwhile in light of the consumer protections and heightened regulatory compliance gained by such requirements. The proposed amendments also provide economic benefits to victims of securities violations in Vermont by establishing the process for seeking restitution assistance from the Fund. |
| Posting date: |
Sep 01,2021 |
