Virginia Proposes Securities Rule Revisions

Rule revisions anticipated to become effective July 1, 2009 were proposed by the Virginia Corporation Commission. Among the proposals would be one to eliminate the Form U-2 filing requirement for Rule 505 and 506 offerings but mandate issuers to send the Corporation Commission the same Form D filed with the SEC (for Rule 505) and submit the SEC's most recently effective Form D as the appropriate notice (for Rule 506). Other proposals would adopt NASAA's Model Custody Rule 102(e)(1)-1 and the NASAA policy statement on corporate securities definitions, require additional information on investment adviser and federal covered investment adviser registration applications, amend the examination and termination requirements for agents and investment adviser representatives, and allow agents terminating employment with registered broker-dealers because of retirement or disability to continue to receive compensation after termination if certain conditions are met.

A copy of the proposed rules may be found here.

Interested persons may submit written comments to Joel H. Peck, Clerk, State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218, by May 15, 2009. A hearing may be held on June 3, 2009 if requested.