Across the United States, a number of state legislatures have postponed their sessions and various state securities regulators have issued orders to deal with the coronavirus (COVID-19).
State legislatures. Postponements. As of March 20, 2020, the following 21 legislatures have postponed their legislative session (with more states likely to do so):
Alabama, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Nebraska, New Hampshire, New York, Rhode Island, Vermont, Virgin Islands and Wisconsin.Four additional chambers postponed. The following four additional chambers have also postponed their legislative session:
Missouri Senate, New Jersey Assembly, Ohio House and Oklahoma Senate.State securities regulators. The North American Securities Administrators Association, Inc. (NASAA) is continuously updating on its website a list of orders various states securities regulators have issued and other measures the jurisdictions are taking amid COVID-19.
Orders. Below is a summary of the orders as of March 24, 2020. Important Note: some of the states issuing temporary relief orders below are requiring financial professionals to keep a copy of the order in their records to demonstrate their reliance on the order—because any activities not meeting an order’s conditions may later be treated by the respective state securities regulators as non-exempt, unregistered securities activity, thereby subjecting the financial professional to state enforcement action. A best practice would be to keep a copy of the orders issued by all states whether or not required.
Alabama: temporarily relieves financial professionals displaced by COVID-19; relieves the requirement to obtain physical signatures on Form U-4.
Colorado: temporarily relieves financial professionals displaced by COVID-19; extends investment adviser annual update amendment filing deadline for up to 45 days from the normally required date; relieves the requirement to obtain physical signatures on Form U-4.
Florida: extends license renewal deadline for 30 days from the existing renewal deadline; no late fee assessed for eligible renewals during extension period.
Georgia: extends investment adviser annual update amendment filing deadline until 5:00 p.m. on April 30, 2020; relieves registrants of fingerprint requirement until June, 30, 2020.
Nebraska: all notices must be filed electronically—file Rule 506 offerings through NASAA’s electronic filing depository (EFD) and email all other notices including Nebraska’s limited offering exemption at Nebraska Securities Act, Section 8-1111; Regulation A, Tier 2 offerings; and mutual fund and unit investment trust offerings to DOB.securitiesfilings@nebraska.gov; temporarily relieves financial professionals displaced by COVID-19; extends investment adviser annual update amendment filing deadline for up to 45 days from the normally required date; relieves the requirement to obtain physical signatures on Form U-4.
Vermont: extends investment adviser annual update amendment filing deadline until April 30, 2020.
West Virginia: temporarily relieves financial professionals displaced by COVID-19; extends investment adviser annual update amendment filing deadline for up to 45 days from the normally required date; relieves the requirement to obtain physical signatures on Form U-4.
Wisconsin: temporarily relieves financial professionals displaced by COVID-19; extends investment adviser annual update amendment filing deadline for up to 45 days from the normally required date; relieves the requirement to obtain physical signatures on Form U-4.
Other measures taken. State securities regulators have also taken the following measures:
Connecticut: took no-action position allowing individuals who work for Consumer Credit Licensees currently licensed in Connecticut to temporarily work from home.
Florida: issued guidance for Florida securities professionals.
Hawaii: encourages use of online services; offices will be closed from Friday, March 20th through Friday, April 3rd. Unless otherwise noticed, the Department of Commerce and Consumer Affairs offices will reopen on Monday, April 6th.
Michigan: issued lobby closures.
Nebraska: issued guidance for broker-dealers, agents, investment advisers and investment adviser representatives.
New Mexico: recommends online transactions.
Ohio: many staff members telecommuting from home.
Pennsylvania: issued information and guidance on securities licensing and enforcement/compliance.
Vermont: until March 31, 2020, staff ordered to work from home except for some persons at office to coordinate COVID-19 response, receive mail and process checks, though this directive may change after its March 16th issuance.
Virginia: changed normal business operations—as of March 20, 2020, business entity filings should be made electronically; U.S. mail and private delivery service remain as an alternative to the online Clerk’s Information System (CIS); the 100-page limit for electronic filing of case documents has been modified: enlarged case documents may be submitted electronically in logically separated parts of 100 pages or less.
Washington: reduced onsite staff at the Department of Financial Institution’s offices.
Please continue to check NASAA’s website because the organization adds orders and other measures when the state securities regulators release them.