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Code of Colorado Regulations eDocket
Official Publication of the State Administrative Rules (24-4-103(11) C.R.S.)

Details of Tracking Number  2017-00125

CCR details

Tracking Number 2017-00125
Type of Filing Permanent Rule
Department 700 Department of Regulatory Agencies
Agency 704 Division of Securities
CCR Number 3 CCR 704-1

Proposed rule

Notice Filed with SOS 03/27/2017
Rule ProposedRuleAttach2017-00125.pdf
Additional Information AddInfoAttach2017-00125.pdf
Statutory Authority 11-51-308.5;11-51-311; 11-51-409.5; 11-51-704
Description of Subjects/Issues These changes update Colorado’s securities rules. Rule 51-3.5 was amended to promote efficiencies. Rule 51-3.9 was amended to update the manual exemption. Rule 51-3.13 was repealed to comply with Regulation A. The new Rule 51-3.13 requires issuers who are relying on Regulation A to provide notice to the Division. Rule 51-3.24 was amended to ensure that issuers are only using crowdfunding exemption. Rule 51-3.31 requires notice filing for federal crowdfunding. Rule 51-3.32 provides rules for electronic documents and signatures. Rule 51-3.33 provides a licensing exemption for a broker engaged effecting securities transactions solely in connection with the transfer of ownership of an eligible company. Rules 51-4.8 and 51-4.14(IA) clarifies how broker-dealers and investment advisers must protect electronically stored information. Amended Rule 51-4.4(IA) requires an investment adviser to explain any unpaid arbitration award. Rule 51-4.6(IA) now defines when supervisory procedures are reasonably situated to an investment adviser. Rule 51-4.11(IA) allows certain investment advisers of private funds to be exempt from licensing. Rule 51-4.12(IA) requires investment advisers to consider disaster scenarios. Rule 51-4.13(IA) imposes a positive net worth requirement. Rule 51-4.15(IA) defines when one may charge a performance fee. Chapter 6 has been re-organized. Rule 51-9.3 was amended to better reflect LGIP requirements.
Purpose/Objective of Rule see attachment
Basis And Purpose BasisAndPurposeAttachment2017-00125.pdf
Submitted in response to issues raised by COLS/OLLS? No
Is this rule adopted in response to recent legislation? No
Hearing Date 05/01/2017
Hearing Time 09:00 AM
Hearing Location 1560 Broadway STE 975, Denver, CO 80202
Contact Name Gerald Rome
Contact Title Securities Commissioner
Contact Telephone 303.894.2320
Contact email gerald.rome@state.co.us

Adopted rule

Adopted Rules AdoptedRules02017-00125.rtf
Redline Redline2017-00125.rtf
Adopted Date 05/19/2017
AGO requested date 05/19/2017
Attorney General Opinion 06/07/2017
Colorado Register publication date 06/25/2017
Effective Date 07/15/2017
Inserted into CCR 07/26/2017