Illinois Administrative Code › Title 14 - COMMERCE › Part 130 - REGULATIONS UNDER ILLINOIS SECURITIES LAW OF 1953 › Subpart B - DEFINITIONS › Section 130.211 - Definition of Acts Not Constituting an "Offer" of Securities under Section 5, 6, 7 or 8 of the Act

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Notwithstanding any other provision of the Act or this Part, the transmitting
				or sending of any announcement, offering circular, prospectus or other
				communication via the nonproprietary, public computer network (commonly known
				as the "Internet") shall not constitute an offer of securities under Section 5,
				6 or 7 of the Act; provided that the communication indicates, directly or
				indirectly, that the securities are not being offered to the residents of this
				State, and an offer is not otherwise specifically directed to any person in
				this State by or on behalf of the issuer of the securities.
b) No sale of securities shall be made in
				this State until the securities have been registered under Section 5, 6 or 7 of
				the Act and a prospectus, offering circular or Form U-7 in its most current
				form has been delivered to each offeree prior to the sale, or the securities
				are exempt from registration under Section 3 of the Act or sold in
				transactional exemptions set forth under Section 4 of the Act (except
				subsection G, H or R of Section 4 of the Act, or subsection M of Section 4 of
				the Act if any commission or other remuneration is paid or given, directly or
				indirectly, on account of the sale or sales or issuance of the
				securities).
c) Nothwithstanding
				any other provision of the Act or this Part, salespersons or dealers who
				transmit or distribute information on available products and services via the
				Internet shall not constitute an offer of securities for purposes of Section 8
				of the Act provided that:
1) The communication
				contains a legend clearly stating that the salesperson or dealer may only
				transact business in those states where he, she or it is registered or
				otherwise excluded or exempted from State registration;
2) The sender of the communication has taken
				reasonable measures to insure that any subsequent interaction between
				prospective customers or clients residing in states where the salesperson or
				dealer is not registered is limited so as to not otherwise require State
				salesperson, dealer or securities registration;
3) The communication does not involve the
				actual effecting of securities transactions or trades for compensation over the
				Internet but is limited to the dissemination of information on products or
				services; and
4) In the case of a
				salesperson, the affiliation with a dealer is prominently disclosed within the
				communication; the dealer retains the responsibility of reviewing and approving
				the content of the Internet communication; the dealer has authorized the
				distribution or dissemination of information on products and services via the
				Internet communication; and the salesperson is acting within the scope of his
				or her authority in distributing or disseminating the Internet
				communication.