Uniform Securities Act
Also known as: USA, model state securities law
The Uniform Securities Act is model legislation that serves as the template for state-level securities laws, often called blue sky laws. It governs the registration of securities, broker-dealers, agents, and investment advisers at the state level.
The Uniform Securities Act (USA) is a model law — a template drafted so that each state could adopt substantially similar securities legislation rather than fifty conflicting rulebooks. State securities laws built on this framework are commonly called blue sky laws. While federal law (enforced by the SEC) governs interstate securities activity, the USA framework governs securities business within each state.
The act empowers a state securities regulator, known as the Administrator, to oversee the securities industry within its borders. The Administrator registers broker-dealers, agents, investment advisers, and investment adviser representatives; reviews securities offerings registered in the state; investigates violations; and can deny, suspend, or revoke registrations. The act also defines which securities and transactions are exempt from state registration.
Under the USA framework, a security sold in a state generally must be registered there — by coordination alongside a federal registration, by qualification for a purely intrastate offering, or by filing/notification — unless the security or the transaction qualifies for an exemption. Government bonds and securities listed on major exchanges are classic examples of exempt securities.
The Uniform Securities Act is the backbone of the Series 63 exam, which tests state registration requirements, exemptions, and the Administrator's powers in depth. The SIE and Series 7 exams also touch on state blue sky laws and exemptions within their primary market and regulatory material.
Key takeaways
- The Uniform Securities Act is model legislation underlying state securities laws, known as blue sky laws.
- Each state's Administrator registers broker-dealers, agents, investment advisers, and securities offerings.
- Securities sold in a state must be registered by coordination, qualification, or filing unless exempt.
- The Administrator can deny, suspend, or revoke registrations and investigate violations within the state.
- The Series 63 exam is built around the Uniform Securities Act, and the SIE and Series 7 cover its exemptions.