Rule 69W-700.019, F.A.C., is recommended for amendment to change the requirement of mandatory submission of sales reports to only require submission of sales reports upon request by the Office pursuant to Section 517.081(3), F.S., to reduce ...

DEPARTMENT OF FINANCIAL SERVICES
Securities

RULE NO.: RULE TITLE:
69W-700.019: Submission of Sales Reports
PURPOSE AND EFFECT: Rule 69W-700.019, F.A.C., is recommended for amendment to change the requirement of mandatory submission of sales reports to only require submission of sales reports upon request by the Office pursuant to Section 517.081(3), F.S., to reduce regulatory burdens. Also, an amendment is proposed to clarify the requirement of notice of consummated sales/discontinued offerings in subsection (3) by replacing language containing “should” to “shall.”
SUMMARY: Rule 69W-700.019, F.A.C., is recommended for amendment to change the requirement of mandatory submission of sales reports to only require submission of sales reports upon request by the Office, to reduce regulatory burdens. Also, an amendment is proposed to clarify the requirement of notice of consummated sales/discontinued offerings in subsection (3) by replacing language containing “should” to “shall.”
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.
The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: 1) No requirement for a SERC was triggered under Section 120.541(1); and 2) The amendments will not exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
RULEMAKING AUTHORITY: 517.03(1) FS.
LAW IMPLEMENTED: 517.081(3) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: John Kim, Assistant General Counsel, [phone], [e-mail]

THE FULL TEXT OF THE PROPOSED RULE IS:

69W-700.019 Submission of Sales Reports.

(1) Sales reports shall be submitted upon request to the Office of Financial Regulation for securities registered pursuant to Section 517.081, F.S. The Office of Financial Regulation will require sales reports to be submitted for securities registered pursuant to Section 517.081, F.S., as follows:

(1) In the case of a firm commitment by an underwriter, within one hundred and twenty (120) days after distribution of securities.

(2) In a “best efforts” underwriting, every thirty (30) days until the offering is completed.

(2)(3) When all sales have been consummated or it is the desire to discontinue an offering, notice shall be given to the Office of Financial Regulation should be notified so that it may close its files on this registration.

Rulemaking Specific Authority 517.03(1) FS. Law Implemented 517.081(3) FS. History–(Formerly 3E-20.18) New 9-20-82, Formerly 3E-700.19, Amended 12-8-87, 7-31-91, Formerly 3E-700.019, Amended_________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Pamela Epting, Director, Division of Securities
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 26, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: May 25, 2012