Colorado schedules securities oversight to end on September 1, 2037

The law schedules Colorado’s securities law, Division of Securities, and Securities Board to end on September 1, 2037. This covers Colorado’s securities law in article 51 and the state bodies that oversee it. The Division of Securities and Securities Board are scheduled for review before that date. The law takes effect following the 90-day period after final legislative adjournment. A timely referendum petition delays challenged provisions until voters approve them and the governor officially declares the vote.

People facing a preliminary order to stop certain securities practices or an immediate license suspension may request a hearing within 15 days after the order is issued. These procedures cover people ordered to stop certain securities practices and people whose securities licenses are immediately suspended. The securities commissioner may issue these orders when the stated legal grounds are met. People must obey preliminary orders until they become final or are canceled, and must obey final orders. The state must promptly send the order, its basis, and a warning about the hearing deadline. An order becomes final if the person does not request a hearing within 15 days or does not attend the hearing. All parties may agree to delay a hearing on an order to stop securities practices, but it must begin within 60 calendar days after the hearing request. Requested hearings must start within 45 calendar days after the order is issued, except for the agreed delay described above. These procedures apply to orders issued on or after the law’s applicable effective date.

Letters identifying problems found during securities examinations, and communications about those letters, are confidential. This covers examination letters identifying problems and communications about those letters. The letters must result from a securities examination under section 11-51-409. The letters and related communications are treated as private investigation information and are not available under Colorado’s public records law. This provision applies when the law takes effect.

Investment advisers and their representatives must be licensed to do business in Colorado unless exempt. Advisers covered by federal securities rules must file state notices and pay required fees unless exempt. These rules cover investment advisers and their representatives doing business in Colorado, including advisers covered by federal securities rules. Investment advisers, including those covered by federal rules, may engage representatives to act in Colorado only if those representatives are licensed or exempt. Having no Colorado office alone does not establish an exemption; advisers must also meet the exemption rules. Representatives associated with advisers exempt under section 11-51-402(5) receive the stated licensing and notice-filing exemptions. When the law takes effect, federal advisers required to file notices must annually file consent to receive legal papers and any federally filed documents the commissioner requires.