Friday, September 16, 2011

DELAWARE Reorganizes Securities Act

House Substitute No. 1, for House Bill No. 88, reorganizes the provisions of the Delaware Securities Act into seven subchapters and makes the following substantive amendments to the Act:

(1) The definition of the word "security" is amended to make clear that a viatical settlement investment is a security under the Act.

(2) A definition of the term "viatical settlement investment" is added to the Act.

(3) The statutory registration exemption for any investment contract issued in connection with an employee's stock purchase, savings, pension, profit-sharing or similar benefit plan is amended to eliminate the requirement that the Commissioner be notified in writing of the
offering of any such security.

(4) A securities registration exemption for viatical settlement investments is added to the Act.

(5) The Act is amended to strike a provision that provides for automatic registration of the partners, officers, and directors of a broker-dealer or investment adviser.

(6) The Act is amended to increase the registration fees for broker-dealers, broker-dealer agents, investment advisers, investment adviser representatives, and issuer agents from $250.00 to $300.00 for initial registration and from $50.00 to $65.00 for transfer or renewal of registration.

(7) The Act is amended to increase the notice filing fee for federal covered advisers from $250.00 to $300.00.

(8) The Act is amended to enhance funding for the Investor Protection Fund.

(9) The Act is amended to update statutory references and make minor technical corrections.
The new legislation becomes effective November 14, 2011.

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