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Securities:

Important Bulletins & Notices

Enforcement

Investor Services

Licensing Requirements


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The Securities Section is responsible for administering the state's securities laws. The intent of these laws is to protect the investing public by requiring a satisfactory investigation of both the people who offer securities as investments and of the securities themselves. The Securities section addresses investor complaints concerning securities brokers and dealers and investment advisors as well as complaints about offerings of particular investment vehicles.

Although the division cannot represent an investor in a claim for monetary damages, the staff can investigate alleged violations and may suspend or revoke licenses, issue stop orders against securities offerings, issue cease and desist orders, seek court-ordered injunctions or refer matters to the Attorney General for criminal prosecution. Conviction of willfully violating the securities statutes carries the penalty of a felony.

Types of Licenses Issued

Issuers of Stocks, Bonds

Registration with State using a Form U-1, Form U-2 and a copy of the offering documents, Fee $300 minimum, $1,000 maximum (1/10th of 1% of the aggregate offering amount in RI). Rule 504 and Regulation A offerings must register under Section 304(qualification). Rule 505 - Regulation D offering - must file $300., Form D and Form U-2 10 days before a sale here. Rule 506 - Regulation D offering - must file $300., Form D and Form U-2 within 15 days of the first sale here.

Broker Dealers

Apply for license through the Central Registration Depository ("CRD") of the Financial Industry Authority ("FINRA").

Franchises

Initial franchise applicants must file an electronic copy of the Franchise Disclosure Document ("FDD"), Uniform Consent to Service of Process, tax-payer affidavit on CD-ROM and a $600 filing fee. An application for renewal must be filed thirty days prior to expiration, including an electronic copy of the FDD, tax-payer affidavit and current audited financial statements along with a $300 fee.
The franchisor must promptly amend its franchise registration application to reflect every material change in the information filed with the Director. Submit all amendments on CD-ROM along with a $120 filing fee.

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