Securities brokers must notify regulators before seeking dispute record removal

Covered securities brokers and agents must notify the Tennessee Department of Commerce and Insurance before court filings about removing customer dispute records. The rules cover brokers and agents with a Tennessee business location. They also cover those previously registered in Tennessee that had a Tennessee location when the customer dispute occurred. They must include the department as a party in the court case unless the commissioner waives that requirement. The rules cover direct removal requests and requests to cancel, change, or confirm an arbitration award about removing records from the Central Registration Depository, the industry's registration database. Written notice is due at least 60 days before filing. The law took effect May 1, 2026.

People bringing a private lawsuit under Tennessee Code Section 48-1-122 must file before the earlier of two deadlines. These deadlines apply to private lawsuits under Tennessee Code Section 48-1-122, rather than every lawsuit involving investments. The two-year clock starts when the person discovers the facts showing the violation or should have discovered them through reasonable effort. The five-year deadline applies even if discovery happens later. The five-year clock runs from the act or transaction that violates the law. The law took effect May 1, 2026.

A chancery court must appoint the Tennessee commerce and insurance commissioner as receiver or conservator when the commissioner requests it. The appointment covers the defendant or the defendant's assets in proceedings under Tennessee Code Section 48-1-119(b). A receiver or conservator manages property or affairs under court authority. The commissioner must request the appointment. The law took effect May 1, 2026.

Section 6 directs deletion of Tennessee Code Title 49, Chapter 4, Part 1. The instruction covers the entire named part of Tennessee law. The law took effect May 1, 2026.