reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 40 - ARKANSAS PREPAID FUNERAL BENEFITS LAW (§§ 23-40-101 — 23-40-126) › Section 23-40-118 - Agent for deposit of contract proceeds

(a)
Each organization subject to this chapter shall designate an agent or agents, either by names of the individuals or by titles of their offices or positions, who shall be responsible for the deposit of contract proceeds collected under contracts for prepaid funeral benefits. The organization shall notify the Insurance Commissioner of the designation within ten (10) days after it becomes subject to this chapter and shall also notify the commissioner of any change in the designation within ten (10) days after the change occurs.
(b)
If any person acting on behalf of the seller collects any contract proceeds under a contract for prepaid funeral benefits and fails to deliver it within ten (10) days after collection to a designated agent, or if any designated agent fails to deposit the contract proceeds within twenty (20) days after receipt of proceeds, he or she shall be punished as prescribed in §
23-40-106(a)(2)
.
Acts 1985, No. 156, § 10; A.S.A. 1947, § 67-1722; Acts 1995, No. 852, § 10; 2001, No. 1043, § 4.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 40 - ARKANSAS PREPAID FUNERAL BENEFITS LAW (§§ 23-40-101 — 23-40-126) › Section 23-40-120 - Records required - Examination

(a)
Each organization which has outstanding contracts for prepaid funeral benefits shall maintain within this state any records which the Insurance Commissioner may require to enable him or her to determine whether the organization is complying with the provisions of this chapter.
(b)
(1)
The records shall be subject to examination by the commissioner, or his or her representatives, as often as he or she deems advisable and not less frequently than every three (3) years. However, the commissioner shall determine the date of original examination without regard to the date of the original permit.
(2)
Each permittee examined shall pay the actual meals, hotel, and traveling expenses of each authorized examiner from Little Rock and return. The expenses shall be prorated if more than one (1) examination is made on an examination trip.
(3)
(A)
All working papers, recorded information, documents, and copies produced by, obtained by, or disclosed to the commissioner or any other person in the course of an examination made under this chapter:
(i)
Shall be treated as confidential;
(ii)
Are not subject to subpoena; and
(iii)
May not be made public by the commissioner or any other person, except to the extent provided in §
23-61-205
.
(B)
All working papers, financial statement analyses, ratio calculations, and any other materials produced by State Insurance Department financial examiners or analysts, or documents submitted or disclosed to the department by an insurer in response to a request from a department financial examiner or analyst during the course of reviewing or investigating the financial solvency, condition, or affairs of the organization:
(i)
Shall be treated as confidential;
(ii)
Are not subject to subpoena; and
(iii)
May not be made public by the commissioner or any other person, except to the extent provided in §
23-61-205
.
(C)
A recipient of information under this section other than the commissioner or department personnel must agree in writing to provide the confidential treatment required by this section prior to receiving the information, unless the prior written consent of the company to which the information pertains has been obtained.
Acts 1985, No. 156, § 12; A.S.A. 1947, § 67-1724; Acts 1995, No. 852, § 11; 1999, No. 881, § 3; 2005, No. 506, § 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 40 - ARKANSAS PREPAID FUNERAL BENEFITS LAW (§§ 23-40-101 — 23-40-126) › Section 23-40-124 - Compliance

Compliance with this act shall be required for all licensees on and after March 16, 1997.
Acts 1997, No. 372, § 11.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 40 - ARKANSAS PREPAID FUNERAL BENEFITS LAW (§§ 23-40-101 — 23-40-126) › Section 23-40-126 - Unfair competition or unfair or deceptive acts or practices prohibited - Penalties

An unfair method of competition or an unfair or deceptive act or practice under §§
23-66-206(1)
-(4),
23-66-206(6)
-(8), and
23-66-207
-
23-66-213
in the sale of a prepaid funeral benefits contract is a violation of this chapter and may be punished under this chapter or the Trade Practices Act, §
23-66-201
et seq.
Acts 2009, No. 538, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-42-101 — 23-42-111) › Section 23-42-101 - Title

This chapter may be cited as the "Arkansas Securities Act".
Acts 1959, No. 254, § 27; A.S.A. 1947, § 67-1261.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-42-101 — 23-42-111) › Section 23-42-103 - Applicability

(a)
(1)
Sections
23-42-106
,
23-42-108
,
23-42-109
,
23-42-212
,
23-42-301(a)
,
23-42-501
, and
23-42-507
apply to persons who sell or offer to sell when:
(A)
An offer to sell is made in this state; or
(B)
An offer to buy is made and accepted in this state.
(2)
Sections
23-42-212
,
23-42-301(a)
, and
23-42-507
apply to persons who buy or offer to buy when:
(A)
An offer to buy is made in this state; or
(B)
An offer to sell is made and accepted in this state.
(3)
For the purpose of this section, an offer to sell or to buy is made in this state, whether or not either party is then present in this state, when the offer:
(A)
Originates from this state; or
(B)
Is directed by the offeror to this state and received at the place to which it is directed or at any post office in this state in the case of a mailed offer.
(4)
(A)
For the purpose of this section, an offer to buy or to sell is accepted in this state when acceptance:
(i)
Is communicated to the offeror in this state; and
(ii)
Has not previously been communicated to the offeror, orally or in writing, outside this state.
(B)
Acceptance is communicated to the offeror in this state, whether or not either party is then present in this state, when the offeree directs it to the offeror in this state reasonably believing the offeror to be in this state and it is received at the place to which it is directed or at any post office in this state in the case of a mailed acceptance.
(5)
An offer to sell or to buy is not made in this state when:
(A)
The publisher circulates, or there is circulated on his or her behalf, in this state any bona fide newspaper or other publication of general, regular, and paid circulation which is not published in this state, or which is published in this state but has had more than two-thirds (2/3) of its circulation outside this state during the past twelve (12) months; or
(B)
A radio or television program originating outside this state is received in this state.
(b)
Sections
23-42-307
,
23-42-301(c)
, as well as §
23-42-212
, so far as investment advisers are concerned, apply when any act instrumental in effecting prohibited conduct is done in this state, whether or not either party is then present in this state.
Acts 1959, No. 254, § 26; 1983, No. 836, § 21; A.S.A. 1947, § 67-1260; Acts 1999, No. 363, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-42-101 — 23-42-111) › Section 23-42-104 - Criminal penalties

(a)
Any person who knowingly violates §
23-42-507
shall be guilty of the offense of "securities fraud". Securities fraud is a Class B felony.
(b)
Any person who knowingly violates §
23-42-501
shall be guilty of the offense of "felony offer or sale of unregistered and nonexempt securities". Felony offer or sale of unregistered and nonexempt securities is a Class D felony.
(c)
Any person who negligently violates §
23-42-501
shall be guilty of the offense of "offer or sale of unregistered and nonexempt securities". Offer or sale of unregistered and nonexempt securities is a Class A misdemeanor.
(d)
Any person who knowingly violates any rule or order of the Securities Commissioner shall be guilty of a Class B misdemeanor. No person may be imprisoned for a violation of any rule or order of which that person did not have actual knowledge.
(e)
Any person who knowingly engages in any unlawful conduct prohibited by this chapter, except as provided in subsection (a), subsection (b), subsection (c), or subsection (d) of this section, shall be guilty of a Class D felony.
(f)
"Purposely", "knowingly", "recklessly", "negligently", and the classes of felonies and misdemeanors set forth in this section shall be as defined and have such penalties as set forth in the Arkansas Criminal Code.
(g)
Nothing in this chapter limits the power of the state to punish any person for any conduct which constitutes a crime by statute or common law.
(h)
The provisions of subsection (e) of this section shall not apply to any violation of §
23-42-509
.
Acts 1959, No. 254, § 21; 1961, No. 248, § 8; 1971, No. 131, § 5; 1973, No. 47, § 16; 1977, No. 493, § 12; 1979, No. 754, § 7; A.S.A. 1947, § 67-1255; Acts 1997, No. 173, § 3.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-42-101 — 23-42-111) › Section 23-42-105 - Prosecution of criminal offenses

(a)
(1)
Prosecutions for offenses described in §
23-42-104
must be commenced within the following periods of limitation:
(A)
Felonies - five (5) years from the date of the occurrence; and
(B)
Misdemeanors - one (1) year from the date of the occurrence.
(2)
The five-year felony and one-year misdemeanor period of limitation does not begin to run until after the commission of the last overt act in the furtherance of a scheme or course of conduct.
(b)
For the purposes of venue for any civil or criminal action under this chapter, any violation of this chapter or of any rule or order promulgated hereunder shall be considered to have been committed in:
(1)
Any county in which any act was performed in furtherance of the transaction which violated this chapter;
(2)
Any county in which the principal or an aider or abettor initiated or acted in furtherance of a course of conduct;
(3)
Any county from which any violator gained control or possession of any proceeds of the violation or of any books, records, documents, or other material or objects which were used in furtherance of the violation; or
(4)
Any county from which or into which the violator directed any postal, telephonic, electronic, or other communication in furtherance of the violation.
(c)
The Securities Commissioner may refer such evidence as is available concerning violations of this chapter or any rule or order hereunder to any appropriate prosecuting authority.
Amended by Act 2019, No. 315,§ 2511, eff. 7/24/2019.
Acts 1959, No. 245, § 21; 1961, No. 248, § 8; 1977, No. 493, § 13; 1979, No. 754, § 7; A.S.A. 1947, § 67-1255.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-42-101 — 23-42-111) › Section 23-42-108 - Rights and remedies cumulative

The rights and remedies provided by this chapter are in addition to any other rights that may exist at law or in equity.
Acts 1959, No. 254, § 22; 1977, No. 493, § 15; A.S.A. 1947, § 67-1256.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-42-101 — 23-42-111) › Section 23-42-109 - Waiver of compliance void

Any condition, stipulation, or provision binding any person acquiring any security to waive compliance with any provision of this chapter or any rule or order under this chapter is void.
Acts 1959, No. 254, § 22; A.S.A. 1947, § 67-1256.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-42-101 — 23-42-111) › Section 23-42-110 - False or misleading statements unlawful

It is unlawful for any person to make or cause to be made, in any document filed with the Securities Commissioner or the commissioner's designee or in any proceeding under this chapter, any statement which is, at the time in light of the circumstances under which it is made, false or misleading in any material respect.
Acts 1959, No. 254, § 16; 1983, No. 836, § 16; A.S.A. 1947, § 67-1250.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-42-101 — 23-42-111) › Section 23-42-111 - Quarterly reports

(a)
The State Securities Department shall provide to the Legislative Council, or to the Joint Budget Committee if the General Assembly is in session, on a quarterly basis a report of all funds received or any external fund transactions recognized or required through court orders or settlement agreements.
(b)
The report required under subsection (a) of this section shall include:
(1)
The case name of the court order or settlement agreement;
(2)
The amount of funds received or transaction recognized or required by the department for each court order or settlement agreement;
(3)
(A)
A plan for disbursement of the received funds.
(B)
If funds received from a court order or settlement agreement are expended for any purpose, including investor education and enforcement activities, the report shall itemize specific activities subject to the exclusions provided in §
25-1-403(1)(B)
;
(4)
An itemization of the specific investor education and enforcement activities funded for the department;
(5)
An explanation of whether the funds received or transactions recognized or required from a court order or settlement agreement are directed to a specific entity, and if so, the department shall provide a summary of input regarding the drafting of the court order or settlement agreement;
(6)
A report of the rationale for disbursing funds to a specific entity if the department receives funds from a court order or settlement agreement that does not require disbursement of funds to a specific entity; and
(7)
A report of current balances of all unappropriated fund holdings the department received from a court order or settlement agreement.
(c)
The department shall provide the reports required under this section no later than the fifteenth day of the month immediately following the end of each quarter.
Amended by Act 2023, No. 281,§ 6, eff. 7/1/2023.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 2 - ADMINISTRATION (§§ 23-42-201 — 23-42-213) › Section 23-42-201 - Administration by Securities Commissioner - Conflicts of interest

(a)
(1)
This chapter shall be administered by the Securities Commissioner.
(2)
Except as provided in subdivision (a)(3) of this section, the Securities Commissioner shall:
(A)
Be appointed by the Governor and serve at the pleasure of the Governor; and
(B)
Report to the Bank Commissioner.
(3)
The Bank Commissioner may act as the Securities Commissioner.
(b)
(1)
There is created within the Department of Commerce the State Securities Department.
(2)
The State Securities Department shall have all the powers and duties assigned pursuant to Acts 1983, No. 691, and all subsequent delegations of authority.
(c)
No person shall serve in the State Securities Department or in the Department of Commerce working for the State Securities Department in any capacity who engages in any activities regulated under the provisions of this chapter.
Amended by Act 2023, No. 475,§ 7, eff. 8/1/2023.
Amended by Act 2019, No. 910,§ 575, eff. 7/1/2019.
Acts 1959, No. 254, §§ 18, 30; 1961, No. 248, § 10; 1973, No. 471, § 2; A.S.A. 1947, §§ 67-1252, 67-1262.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 2 - ADMINISTRATION (§§ 23-42-201 — 23-42-213) › Section 23-42-202 - Delegation of authority by Securities Commissioner

(a)
The Securities Commissioner may delegate to any person under any conditions which he or she deems appropriate any responsibilities of the commissioner as set forth in this chapter, the Credit Union Act, §
23-35-101
et seq., the Savings and Loan Act, §
23-37-101
et seq., or any other act for which the commissioner is responsible.
(b)
The commissioner, subject to any restrictions which he or she in his or her discretion deems appropriate, may delegate to any person the exercise or discharge in the commissioner's name of any power, duty, or function, whether ministerial, discretionary, or of whatever character, vested by this chapter in the commissioner.
Acts 1959, No. 254, § 19; 1977, No. 493, § 11; 1979, No. 754, § 4; A.S.A. 1947, § 67-1253; Acts 1995, No. 845, § 3; 1997, No. 173, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 2 - ADMINISTRATION (§§ 23-42-201 — 23-42-213) › Section 23-42-203 - Confidentiality of information or proceedings generally

(a)
It is unlawful for the Securities Commissioner or any of the officers or employees of the State Securities Department or officers or employees of the Department of Commerce working for the State Securities Department to use for personal benefit any information which is filed with or obtained by the commissioner and which is not made public.
(b)
Neither the commissioner nor any of the officers or employees of the State Securities Department or officers or employees of the Department of Commerce working for the State Securities Department shall disclose the information except among themselves or when necessary or appropriate in a proceeding or investigation under this chapter or in any judicial proceedings when the information is not privileged.
(c)
No provision of this chapter either creates or derogates from any privilege which exists at common law or otherwise when documentary or other evidence is sought under a subpoena directed to the commissioner or any of his or her officers or employees.
(d)
Nothing herein shall prevent the commissioner or any officers or employees of the State Securities Department or officers or employees of the Department of Commerce working for the State Securities Department from sharing with state or federal law enforcement authorities, other state or federal regulatory authorities, or self-regulatory organizations authorized by law any information which they may have or obtain in aid of the enforcement of this chapter or any other securities act or the criminal provisions of any laws.
(e)
The commissioner, in his or her discretion, shall determine when an administrative proceeding shall be public.
Amended by Act 2019, No. 910,§ 576, eff. 7/1/2019.
Acts 1959, No. 254, §§ 18, 24; 1963, No. 479, § 4; 1985, No. 939, § 9; A.S.A. 1947, §§ 67-1252, 67-1258; Acts 1995, No. 845, § 4.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 2 - ADMINISTRATION (§§ 23-42-201 — 23-42-213) › Section 23-42-206 - Records of Securities Commissioner generally - Interpretive opinions

(a)
(1)
A document is filed when it is received by the Securities Commissioner or when the commissioner receives notice from his or her designee that a document was received by the designee.
(2)
The disposition of any document received by the commissioner shall be in accordance with the Arkansas State Records Management and Archives Act of 1995, §
13-4-101
et seq. [repealed].
(3)
A document received by the commissioner's designee may be:
(A)
Destroyed after the reproduction of the document by photograph, microphotograph, or electronic means of a permanent nature;
(B)
Transferred to a permanent storage location maintained by the Central Registration Depository with the Financial Industry Regulatory Authority, the Securities Registration Depository with the North American Securities Administrators Association, or such other central depository system as may be determined by the commissioner; or
(C)
Transferred to the commissioner to be disposed of in the manner of a document received by the commissioner.
(b)
The commissioner shall keep a register of all notice filings, applications for registration, and registration statements which are, or have ever been, effective under this chapter and all denial, suspension, or revocation orders which have ever been entered under this chapter. The register shall be open for public inspection.
(c)
The commissioner may rely upon and coordinate with the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Municipal Securities Rulemaking Board, the North American Securities Administrators Association, and any other securities regulatory agencies for the proper maintenance of certain common registrations, records, and other documents maintained by the other regulatory agencies.
(d)
Upon request, and at reasonable charges which he or she prescribes, the commissioner shall furnish to any person photostatic or other copies, certified under his or her seal of office if requested, of any entry in the register or any document which is a matter of public record. In any proceeding or prosecution under this chapter, any copy so certified is prima facie evidence of the contents of the entry or document certified.
(e)
The commissioner in his or her discretion may honor requests from interested persons for interpretative opinions.
Acts 1959, No. 254, § 25; 1975, No. 844, § 13; 1977, No. 493, §§ 17, 18; 1983, No. 836, § 17; A.S.A. 1947, § 67-1259; Acts 1995, No. 845, §§ 6, 7; 1997, No. 173, § 7; 2009, No. 462, §§ 2, 3.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 2 - ADMINISTRATION (§§ 23-42-201 — 23-42-213) › Section 23-42-208 - Cooperation with other regulatory agencies

(a)
The Securities Commissioner may enter into an arrangement, agreement, or other working relationship with federal, other state, and self-regulatory authorities whereby documents may be filed and maintained in the Central Registration Depository with the Financial Industry Regulatory Authority, the Securities Registration Depository with the North American Securities Administrators Association, such other central depository system as determined by the commissioner, or the other agencies or authorities.
(b)
It is the intent of this section that the commissioner be provided the authority to reduce duplication of filings, reduce administrative costs, and establish uniform procedures, forms, and administration with the states and federal authorities.
(c)
The commissioner may permit initial and renewal registration filings required under this chapter to be filed with the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the North American Securities Administrators Association, or other similar authorities.
(d)
The commissioner may accept uniform securities examinations or other procedures designed to implement a uniform national securities regulatory system or facilitate common practices and procedures among the states.
Acts 1959, No. 254, § 4; 1979, No. 754, § 5; 1983, No. 836, § 8; A.S.A. § 67-1238; Acts 1995, No. 845, § 9; 2009, No. 462, §§ 5, 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 2 - ADMINISTRATION (§§ 23-42-201 — 23-42-213) › Section 23-42-210 - Judicial review

(a)
(1)
A person aggrieved by a final order of the Securities Commissioner may obtain a review of the order in any state court of competent jurisdiction by filing in court, within thirty (30) days after the entry of the order, a written petition praying that the order be modified or set aside in whole or in part.
(2)
A copy of the petition shall be forthwith served upon the commissioner, and thereupon the commissioner shall certify and file in court a copy of the filing and evidence upon which the order was entered. When these copies have been filed, the court has exclusive jurisdiction to affirm, modify, enforce, or set aside the order, in whole or in part.
(b)
(1)
The findings of the commissioner as to the facts, if supported by competent, material, and substantial evidence, are conclusive.
(2)
If either party applies to the court for leave to adduce additional material evidence and shows to the satisfaction of the court that there were reasonable grounds for failure to adduce the evidence in the hearing before the commissioner, the court may order the additional evidence to be taken before the commissioner and to be adduced upon the hearing, in any manner and upon any conditions which the court considers proper. The commissioner may modify his or her findings and order by reason of the additional evidence and shall file in the court the additional evidence together with any modified or new findings or order.
(c)
The judgment of the court is final, subject to review by the Supreme Court.
(d)
The commencement of proceedings under subsection (a) of this section does not, unless specifically ordered by the court, operate as a stay of the commissioner's order.
Amended by Act 2017, No. 668,§ 13, eff. 8/1/2017.
Acts 1959, No. 254, § 23; 1961, No. 248, § 9; A.S.A. 1947, § 67-1257.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 2 - ADMINISTRATION (§§ 23-42-201 — 23-42-213) › Section 23-42-211 - Disposition of fees

(a)
(1)
There is created on the books of the Chief Fiscal Officer of the State, the Auditor of State, and the Treasurer of State a fund to be known as the "Securities Department Fund".
(2)
The Securities Department Fund shall be used for the maintenance, operation, support, and improvement of the State Securities Department in carrying out its functions, powers, and duties as set out by law and by rule not inconsistent with law.
(3)
The Securities Department Fund shall consist of those portions of fees designated for deposit into the Securities Department Fund under §
23-42-304(a)(2), (a)(4), and (a)(5)
, §
23-42-404(b)(1)
, and §
23-42-509(a)
.
(4)
Notwithstanding subdivision (a)(3) of this section, at the end of each fiscal year, the Securities Commissioner shall transfer into the General Revenue Fund Account of the State Apportionment Fund any moneys in the Securities Department Fund that exceed the amount of the department's next fiscal-year budget.
(b)
The department is authorized to promulgate such rules necessary to administer the fees, rates, tolls, or charges for services established by this section and is directed to prescribe and collect such fees, rates, tolls, or charges for the services by the department in such manner as may be necessary to support the programs of the department as directed by the Governor and the General Assembly.
Amended by Act 2019, No. 315,§ 2513, eff. 7/24/2019.
Amended by Act 2019, No. 110,§ 2, eff. 7/24/2019.
Amended by Act 2017, No. 668,§ 14, eff. 8/1/2017.
Amended by Act 2013, No. 438,§ 2, eff. 7/1/2013.
Acts 1959, No. 254, § 30; 1961, No. 248, § 10; 1973, No. 471, § 3; A.S.A. 1947, § 67-1262; Acts 1993, No. 659, §§ 1, 5; 1993, No. 850, §§ 1, 5; 2003, No. 759, § 1; 2009, No. 534, § 3; 2011, No. 294, § 8.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 2 - ADMINISTRATION (§§ 23-42-201 — 23-42-213) › Section 23-42-212 - Registration or availability of exemption not construed as approval by Securities Commissioner - Inconsistent representation

(a)
(1)
Neither the fact that an application for registration, a notice filing, or a registration statement has been filed nor the fact that a person or security is effectively registered constitutes a finding by the Securities Commissioner that any document filed under this chapter is true, complete, and not misleading.
(2)
Neither any such fact nor the fact that an exemption or exception is available for a security or a transaction means that the commissioner has passed in any way upon the merits or qualifications of, or recommended or given approval to, any person, security, or transaction.
(b)
It is unlawful to make, or cause to be made, to any prospective purchaser, customer, or client any representation inconsistent with subsection (a) of this section.
Acts 1959, No. 254, § 17; A.S.A. 1947, § 67-1251; Acts 1997, No. 173, § 10.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 2 - ADMINISTRATION (§§ 23-42-201 — 23-42-213) › Section 23-42-213 - Disposition of fines - Investor Education Fund

(a)
There is created on the books of the Chief Fiscal Officer of the State, the Auditor of State, and the Treasurer of State a fund to be known as the "Investor Education Fund".
(b)
Except as provided by subsection (c) of this section, all fines imposed and collected under §§
23-42-209
and
23-42-308
shall be deposited as special revenues into the State Treasury and credited to the fund, to be administered by the Securities Commissioner for the following purposes:
(1)
To inform and educate the public regarding investments in securities in order to help investors and potential investors:
(A)
Evaluate their investment decisions;
(B)
Protect themselves from unfair, inequitable, or fraudulent offerings;
(C)
Choose their broker-dealers, agents, and investment advisers more carefully;
(D)
Be alert for false or misleading advertising or other harmful practices; and
(E)
Know their rights as investors; and
(2)
To pay for:
(A)
Costs, expenses, and charges incurred by the State Securities Department in connection with the presentation and dissemination of information to the public as described in this section, including costs of printing copies of the Arkansas Securities Act, §
23-42-101
et seq., Rules of the Arkansas Securities Commissioner, and other materials designed to inform the public as set forth in this section;
(B)
Costs of advertising and promotional materials designed to accomplish the purposes of this subdivision (b)(2);
(C)
Costs of equipment necessary or useful for such presentations; and
(D)
Costs and expenses associated with conducting a stock market game for educational purposes in selected schools in the state's public school system.
(c)
Fines collected in excess of one hundred fifty thousand dollars ($150,000) in any one (1) fiscal year shall be deposited as general revenues.
Amended by Act 2017, No. 668,§ 16, eff. 8/1/2017.
Amended by Act 2017, No. 668,§ 15, eff. 8/1/2017.
Amended by Act 2013, No. 460,§ 5, eff. 8/16/2013.
Acts 2003, No. 759, § 2.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 3 - BROKER-DEALERS, AGENTS, AND INVESTMENT ADVISERS (§§ 23-42-301 — 23-42-309) › Section 23-42-303 - Minimum net capital requirement

(a)
The Securities Commissioner shall require a minimum net capital for registered broker-dealers in such amount as he or she may by rule prescribe and for registered investment advisers in the amount of twelve thousand five hundred dollars ($12,500).
(b)
However, subsection (a) of this section shall not apply to any registered investment adviser which maintains its principal place of business in a state other than Arkansas that:
(1)
Is registered or licensed as such in the state in which it maintains its principal place of business; and
(2)
Is in compliance with the applicable net capital requirements of the state in which it maintains its principal place of business.
Acts 1959, No. 254, § 4; 1961, No. 248, § 2; 1973, No. 47, § 3; 1975, No. 844, § 3; A.S.A. 1947, § 67-1238; Acts 1995, No. 845, § 13; 1997, No. 173, § 13.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 3 - BROKER-DEALERS, AGENTS, AND INVESTMENT ADVISERS (§§ 23-42-301 — 23-42-309) › Section 23-42-304 - Filing fees - Rules

(a)
Every applicant for initial or renewal registration, every person making a notice filing as required by §
23-42-301
, every exempt reporting adviser, and every investment adviser to a private fund shall pay a filing fee of:
(1)
Three hundred dollars ($300) in the case of a broker-dealer;
(2)
Seventy-five dollars ($75.00) in the case of an agent, of which twenty-five dollars ($25.00) shall be designated as special revenues and shall be deposited into the Securities Department Fund;
(3)
Three hundred dollars ($300) in the case of an investment adviser;
(4)
Seventy-five dollars ($75.00) in the case of a representative, of which twenty-five dollars ($25.00) shall be designated as special revenues and shall be deposited into the Securities Department Fund;
(5)
Fifty dollars ($50.00) in the case of a branch office, of which the entire amount shall be designated as special revenues and deposited into the Securities Department Fund; and
(6)
Three hundred dollars ($300) in the case of an exempt reporting adviser or investment adviser to a private fund that complies with exemption requirements.
(b)
A filing fee is nonrefundable.
(c)
The State Securities Department is hereby authorized to promulgate such rules necessary to administer the fees, rates, tolls, or charges for services established by this section and §
23-42-404
and is directed to prescribe and collect such fees, rates, tolls, or charges for the services by the department in such manner as may be necessary to support the programs of the department as directed by the Governor and the General Assembly.
Amended by Act 2021, No. 533,§ 1, eff. 7/28/2021.
Amended by Act 2019, No. 315,§ 2514, eff. 7/24/2019.
Amended by Act 2017, No. 668,§ 18, eff. 8/1/2017.
Acts 1959, No. 254, § 4; 1961, No. 248, § 2; 1975, No. 844, § 2; 1985, No. 939, § 2; A.S.A. 1947, § 67-1238; Acts 1987, No. 449, § 1; 1993, No. 659, §§ 2, 5; 1993, No. 850, § 2, 5; 1995, No. 845, § 14; 1997, No. 173, § 14; 2009, No. 534, § 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 3 - BROKER-DEALERS, AGENTS, AND INVESTMENT ADVISERS (§§ 23-42-301 — 23-42-309) › Section 23-42-305 - Corporate surety bonds - Alternatives

(a)
(1)
The Securities Commissioner shall require registered broker-dealers, investment advisers, and an agent for the issuer to maintain a bond in such form and amount as he or she may by rule prescribe.
(2)
However, this subsection does not apply to any registered investment adviser that maintains its principal place of business in a state other than Arkansas that:
(A)
Is registered or licensed as such in the state in which it maintains its principal place of business; and
(B)
Is in compliance with the applicable bonding requirements of the state in which it maintains its principal place of business.
(b)
The following apply to those bonds required to be posted with the commissioner under subsection (a) of this section:
(1)
The total liability of the surety to all persons, cumulative or otherwise, shall not exceed the amounts specified in the bond;
(2)
Every bond shall provide that a suit shall not be maintained to enforce any liability on the bond unless brought within five (5) years after the sale or other act upon which it is based; and
(3)
Every bond shall provide for suit on the bond by any person who has a cause of action under this chapter.
Acts 1959, No. 254, § 4; 1961, No. 248, § 2; 1973, No. 47, § 4; 1977, No. 493, § 2; 1979, No. 6, §§ 2, 3; 1983, No. 836, § 7; A.S.A. 1947, §§ 67-1238, 67-1238.1; Acts 1991, No. 298, § 1; 1995, No. 845, §§ 15, 16; 1997, No. 173, § 15; 2009, No. 534, § 7.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 3 - BROKER-DEALERS, AGENTS, AND INVESTMENT ADVISERS (§§ 23-42-301 — 23-42-309) › Section 23-42-307 - Unlawful acts by investment advisers

(a)
It is unlawful for any investment adviser or representative:
(1)
To employ any device, scheme, or artifice to defraud the other person;
(2)
To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon the other person; or
(3)
To make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statement made, in light of the circumstances under which it is made, not misleading.
(b)
It is unlawful for any investment adviser to enter into, extend, or renew any investment advisory contract unless it provides in writing that:
(1)
Except as may be permitted by rule or order of the Securities Commissioner, the investment adviser shall not be compensated on the basis of a share of capital gains upon, or capital appreciation of, the funds or any portion of the funds of the client. This subdivision (b)(1) does not prohibit an investment advisory contract which provides for compensation based upon the total value of a fund averaged over a definite period, or as of definite dates, or taken as of a definite date;
(2)
(A)
No assignment of the contract may be made by the investment adviser without the consent of the other party to the contract.
(B)
"Assignment", as used in this subdivision (b)(2), includes any direct or indirect transfer or hypothecation of an investment advisory contract by the assignor, or of a controlling block of the assignor's outstanding voting securities, by a security holder of the assignor.
(C)
However, if the investment adviser is a partnership, no assignment of an investment advisory contract is considered to result from the death or withdrawal of a minority of the members of the investment adviser having only a minority interest in the business of the investment adviser, or from the admission to the investment adviser of one (1) or more members who, after admission, will be only a minority of the members and will have only a minority interest in the business; and
(3)
The investment adviser, if a partnership, shall notify the other party to the contract of any change in the membership of the partnership within a reasonable time after the change.
(c)
It is unlawful for any investment adviser to take or have custody of any securities or funds of any client if:
(1)
The commissioner by rule prohibits custody; or
(2)
In the absence of rule, the investment adviser fails to notify the commissioner that he or she has or may have custody.
Acts 1959, No. 254, § 2; A.S.A. 1947, § 67-1236; Acts 1993, No. 566, § 1; 1995, No. 845, § 18; 2009, No. 462, § 10.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 5 - REGULATION OF TRANSACTIONS (§§ 23-42-501 — 23-42-509) › Section 23-42-501 - Sale of unregistered nonexempt securities

It is unlawful for any person to offer or sell any security in this state unless:
(1)
It is registered under this chapter;
(2)
The security or transaction is exempted under §
23-42-503
or §
23-42-504
; or
(3)
It is a covered security.
Acts 1959, No. 254, § 7; A.S.A. 1947, § 67-1241; Acts 1997, No. 173, § 18.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 5 - REGULATION OF TRANSACTIONS (§§ 23-42-501 — 23-42-509) › Section 23-42-502 - Filing of prospectus, sales literature, etc

The Securities Commissioner, by rule or order, may require the filing of any prospectus, pamphlet, circular, form letter, advertisement, television, radio, or other sales literature or advertising communication addressed or intended for distribution to prospective investors, including clients or prospective clients of an investment adviser, as part of a registered offering or as part of an exempt offering required to be filed under §
23-42-503(d)
or §
23-42-504(b)
.
Acts 1959, No. 254, § 15; 1979, No. 754, § 3; A.S.A. 1947, § 67-1249; Acts 1997, No. 173, § 19.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 5 - REGULATION OF TRANSACTIONS (§§ 23-42-501 — 23-42-509) › Section 23-42-505 - Denial or revocation of exemption

(a)
The Securities Commissioner may, by order, deny or revoke any exemption specified in §
23-42-503(a)(7) or (8), (b), or (c)
or §
23-42-504(a)
with respect to a specific security or transaction.
(b)
(1)
No such order may be entered without appropriate prior notice to all interested parties, opportunity for hearing, and written findings of fact and conclusions of law, except that the commissioner may by order summarily deny or revoke any of the specified exemptions pending final determination of any proceeding under this section.
(2)
Upon the entry of a summary order, the commissioner shall promptly notify all interested parties that it has been entered and of the reasons therefor and that within fifteen (15) days of the receipt of a written request the matter will be set down for hearing.
(c)
(1)
If no hearing is requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner.
(2)
If a hearing is requested or ordered, the commissioner, after notice of and opportunity for hearing to all interested persons, may modify or vacate the order or extend it until final determination.
(d)
No order under this section may operate retroactively.
(e)
No person may be considered to have violated §
23-42-501
or §
23-42-502
by reason of any offer or sale effected after the entry of an order under this section if he or she sustains the burden of proof that he or she did not know and, in the exercise of reasonable care, could not have known of the order.
Acts 1959, No. 254, § 14; 1961, No. 248, § 7; 1977, No. 493, § 9; A.S.A. 1947, § 67-1248; Acts 1997, No. 173, § 22.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 5 - REGULATION OF TRANSACTIONS (§§ 23-42-501 — 23-42-509) › Section 23-42-506 - Burden of proof of exemption

In any proceeding under this chapter, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
Acts 1959, No. 254, § 14; 1961, No. 248, § 7; A.S.A. 1947, § 67-1248.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 42 - ARKANSAS SECURITIES ACT (§§ 23-42-101 — 23-42-509) › Subchapter 5 - REGULATION OF TRANSACTIONS (§§ 23-42-501 — 23-42-509) › Section 23-42-507 - Fraud or deceit in connection with offer, sale, or purchase of securities

It is unlawful for any person, in connection with the offer, sale, or purchase of any security, directly or indirectly:
(1)
To employ any device, scheme, or artifice to defraud;
(2)
To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading; or
(3)
To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.
Acts 1959, No. 254, § 1; A.S.A. 1947, § 67-1235.