Tennessee proposes exempt employee benefit plan rule amendments

By Jay Fishman, J.D.

The Tennessee Securities Division has proposed amendments to its exempt employee benefit plan rule. The anticipated effective date of the rule is February 28, 2018 if no hearing is requested.

As proposed, issuers wishing to offer securities from, in or into Tennessee under the Tennessee Securities Act’s employee benefit plan exemption would file with the Tennessee Securities Commissioner no later than 15 days after the first sale: 

1. a complete, properly executed Form IN-1461, Notice of Sale of Securities Pursuant to Employee Stock Purchase/Option Plan Exemption; 
2. a complete, properly executed Form U-2, Uniform Consent to Service of Process (or another Division-approved form);
3. a complete, properly executed Form U-2A, Uniform Form of Corporate Resolution, if the issuer is a corporation; 
4. a $500 fee; and 
5. a statement specifying the date of the first sale, if any, of securities from, in or into Tennessee.