In Minnesota, investors have rights and protections under numerous laws and regulation including:
Minnesota Securities Laws are designed to protect investors from fraud and to ensure that investors have access to accurate information about the securities they are considering purchasing. The Minnesota Department of Commerce (DOC) is responsible for administering and enforcing the Minnesota Securities Laws.
The Minnesota Securities Laws require that all securities offered for sale in Minnesota be registered with the DOC, unless the securities or transactions are exempt. Exempt securities include:
Securities issued by the United States or the state of Minnesota
Securities issued by certain non-profit organizations
Securities offered in certain private transactions
The Minnesota Securities Laws also require that all broker-dealers, agents, and investment advisers who offer or sell securities in Minnesota be registered with the DOC.
The Minnesota Securities Laws prohibit fraud and other unfair practices in the sale of securities. The DOC can investigate alleged violations of the law and take enforcement actions, such as issuing cease-and-desist orders and imposing fines.
Here are some tips for investors who are considering investing in securities in Minnesota:
Make sure the broker-dealer and investment adviser are registered with the Minnesota DOC. You can check the DOC's website to see if a broker-dealer or investment adviser is registered.
Make sure the securities are registered with the Minnesota DOC. You can check the DOC's website to see if a security is registered.
Get a copy of the prospectus for the security before you invest. The prospectus is a document that contains important information about the security, such as the risks involved in the investment.
Ask questions and do your research before you invest. Don't be afraid to ask your broker-dealer or investment adviser questions about the security you are considering investing in. You should also do your own research to learn more about the security and the company that issued it.
If you have any questions about the Minnesota Securities Laws or about investing in securities in Minnesota, you can contact the Minnesota DOC at (651) 539-1500.
In addition to the Minnesota Securities Laws, investors should also be aware of the federal securities laws. These federal securities laws include: