Official Government Website

Securities Section

Phishing Campaign Advisory

This message is to advise you of a new phishing campaign targeting broker-dealers and investment advisers impersonating FINRA executives and using the domain “@broker-finra.org.” This is not a FINRA domain. DO NOT OPEN ANY EMAILS ORIGINATING FROM THIS DOMAIN. The emails request immediate attention to an attachment purportedly relating to the firm (but, at least in some cases, do not actually include the attachment). Additional information is available in FINRA’s Regulatory Notice 20-12: FINRA Warns of Fraudulent Phishing Emails Purporting to be from FINRA, which is available at the following link: https://www.finra.org/rules-guidance/notices/20-12

Coronavirus Statement

COVID-19 Guidance for Agent Applications and Required Fingerprints
Due to the COVID-19 outbreak, the SEC recently issued an order providing temporary relief from the fingerprinting requirements of Section 17(f)(2) of the Exchange Act and Rule 17f-2 for the period of March 16, 2020 until May 30, 2020. In addition, FINRA Rule 1010(d) authorizes FINRA to extend the 30-day period for submitting fingerprint information upon application and a showing of good cause. Given the Commission’s order, and FINRA’s temporary extension of the time period for submitting fingerprint information, the Department will accept fingerprints using these time periods and any subsequent extension by the SEC and FINRA. Specifically, applicants that submitted, or will submit, an initial or transfer Form U4 between February 15, 2020 and May 30, 2020, will have until June 29, 2020 to submit the necessary fingerprint information.

**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 All proposed changes involve updates to currently outdated cites to the Securities Exchange Act of 1934, the Securities Act of 1933, and the Investment Advisers Act of 1940.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.

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