Kentucky investors have rights and protections under numerous laws and regulations.
The Kentucky Securities Law (Kentucky Revised Statutes (KRS) Chapter 292), which is a state securities law that protects investors and regulates the offer and sale of securities in Kentucky. The Kentucky Securities Law applies to all securities offered or sold in Kentucky, with certain exceptions. The Kentucky Securities Law requires that most securities be registered with the Kentucky Department of Financial Institutions before they can be offered or sold.
The Kentucky Securities Law also regulates broker-dealers, agents, investment advisers, and investment adviser representatives. These individuals must register with the KDFI before they can engage in securities activities in Kentucky.
The Kentucky Securities Law prohibits fraud and other fraudulent activities in connection with the offer and sale of securities. The KDFI and private securities attorneys have the authority to investigate and prosecute violations of the Kentucky Securities Law.
Here are some of the key provisions of the Kentucky Securities Law:
Registration of securities: Most securities must be registered with the KDFI before they can be offered or sold in Kentucky.
Registration of broker-dealers, agents, investment advisers, and investment adviser representatives: These individuals must register with the KDFI before they can engage in securities activities in Kentucky.
Anti-fraud provisions: The Kentucky Securities Law prohibits fraud and other fraudulent activities in connection with the offer and sale of securities.
Investors who have been harmed by violations of the Kentucky Securities Law may be able to recover their losses through arbitrations or litigation.
In addition to Kentucky Securities Law, the following federal laws offer protections to investors: