Official Government Website

Securities Section

**Notification** The Idaho Uniform Securities Act—Draft changes to the Idaho Uniform Securities Act affecting broker-dealers, agents, investment advisers, and representatives are available for review. All proposed changes involve updates to currently outdated cites to the Securities Exchange Act of 1934, the Securities Act of 1933, and the Investment Advisers Act of 1940. No new requirements will result from these updates. If you would like a copy of the draft changes, please email Patricia Highley.

Through the authority of Idaho’s Uniform Securities Act (2004) and the Idaho Commodity Code, the Securities Bureau of the Department of Finance regulates the sale of investment securities (e.g., stocks and bonds) and those individuals and entities that offer investment opportunities to the public.

Uniform Securities Act (2004)

Idaho’s Uniform Securities Act (2004) seeks to preserve and promote legitimate securities markets by assisting companies in their attempts to raise capital and prevent investment fraud. While the Act is designed to protect investors from fraud, it does not protect investors from the possibility of investment loss resulting from securities price movements, market changes or business failures. The Act requires that persons who solicit investments provide complete disclosure of all the important aspects of the investment being promoted. With this information, investors are empowered to make reasoned investment decisions.

Idaho Commodity Code

The Idaho Commodity Code is designed to reduce fraud by outlawing certain commodity investment contracts where the investor never receives delivery of the commodity. The law does not create a separate regulatory system. Rather, the statute provides an enforcement tool that relates to types of investment fraud not covered by Idaho’s Uniform Securities Act (2004).

Corporate Takeover Acts

In addition, the Securities Bureau of the Department of Finance has limited duties under Idaho's corporate takeover Acts. In 1988, the Idaho Legislature adopted the Control Share Acquisition Act and the Business Combination Act to govern certain corporate mergers in Idaho. The first law gives shareholders more authority to decide the terms of a takeover and the second allows a corporation to limit the effects of a takeover.

Securities Section Online Resources: