This bill amends various provisions related to the regulation of securities broker-dealers and their agents in Minnesota, introducing new requirements for federal crowdfunding offerings. Issuers must now file a completed Uniform Notice of Federal Crowdfunding Offering form with the administrator when offering securities in Minnesota, and a renewal process for these filings is established. The bill also modifies regulations for small corporate offerings, including the conditions for registration and the necessary contents of registration statements. Additionally, it enhances post-registration requirements for broker-dealers and investment advisers by establishing minimum financial requirements, mandating comprehensive record maintenance, and requiring broker-dealers to develop written supervisory procedures to prevent violations of laws and regulations.

Furthermore, the bill emphasizes investor protection and ethical practices by introducing written policies for business continuity and succession planning, mandating physical security and cybersecurity measures for investment advisers, and prohibiting them from accessing client accounts using their login information. It outlines standards of conduct for broker-dealers, prohibiting deceptive practices and emphasizing transparency and integrity. The bill also establishes grounds for the denial, suspension, or revocation of broker-dealer registrations and allows the commissioner to issue cease and desist orders without prior notice if violations are found. Overall, these amendments aim to strengthen regulatory oversight and protect investors from fraudulent and unethical practices in the financial services sector.

Statutes affected:
Introduction: 80A.50, 80A.69, 80C.12