Securities Division

1985 Amendments to Rules
R14-4-101—103 of the Securities Division

On July 18, 1985 certain amendments to the Commission Rules and Regulations went into effect. Of particular significance to the Regulation Section are the amendments to A.C.R.R. R14-4-101, R14-4-102 and R14-4-103.

R14-4-101, promulgated pursuant to A.R.S. Section 44-1845, provides an exemption from the securities and dealer registration requirements where offers and sales are made to existing employees or security holders and no commission or remuneration is paid to any person in connection with the distribution or sale of such securities. The rule previously limited the dollar amount of the securities to be offered to $50,000; the amendment increased this amount to $500,000. The exemption is effective for one year.

R14-4-102, also promulgated pursuant to A.R.S. Section 44-1845, provides an exemption from the securities and dealer registration requirements where offers and sales are made to ten or fewer persons in Arizona. As amended, the dollar amount of securities which may be offered or sold pursuant to such exemption is increased from $50,000 to $100,000. The amendment also adds a purchaser suitability requirement whereby the investment will be presumed suitable for the purchaser if it does not exceed 20 percent of the purchaser’s net worth (excluding principal residence, furnishings and personal automobiles). The exemption is effective for one year.

R14-4-103, as amended, no longer requires the filing of advertising and sales materials used in connection with the sale of investment company shares registered pursuant to the Investment Company Act of 1940 if such materials meet the requirements of the Securities and Exchange Commission Rule 156 (17 CFR 230.156).

[Securities Bulletin, Winter 1986.]

This substantive policy statement is advisory only.  A substantive policy statement does not include internal procedural documents that only affect the internal procedures of the agency and does not impose additional requirements or penalties on regulated parties or include confidential information or rules made in accordance with the Arizona administrative procedure act.  If you believe that this substantive policy statement does impose additional requirements or penalties on regulated parties you may petition the agency under section 41‑1033, Arizona Revised Statutes, for a review of the statement.