HB 18-1388

HB 18-1388 is a Colorado bill that changes how mutual fund offerings are regulated. Instead of requiring companies to register their securities with the state, it now only requires them to file a notice and pay a fee. This change aligns Colorado's laws more closely with federal regulations. The bill has been signed into law, meaning mutual funds can now operate under these new rules in Colorado without needing full registration.

Official Summary

Existing law generally requires that, for a person to issue a security, either the security or the person must be exempt or the person must register the security with the securities commissioner. The federal 'National Securities Markets Improvement Act of 1996' (NSMIA) preempts certain provisions of the 'Colorado Securities Act' that require the filing of a registration statement and the collection of fees for mutual fund offerings. NSMIA permits state securities regulators to require only notice filing and the payment of a required fee for mutual fund offerings. Sections 1, 2, and 5 of the bill eliminate the registration requirement, and section 3 substitutes a notice filing requirement. The notice is valid for 12 months, must be accompanied by a fee established by the securities commissioner, and can be renewed.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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