New Mexico investors have rights and protections under numerous laws and regulations. These include:
The New Mexico Uniform Securities Act (NMUSA) is the state law that regulates the sale of securities in New Mexico. It is administered by the New Mexico Securities Division, which is part of the New Mexico Attorney General's Office.
The NMUSA is designed to protect investors from fraud and to ensure that investors have access to accurate information about the securities they are considering purchasing.
The NMUSA requires that all securities offered for sale in New Mexico be registered with the Securities Division, unless the securities or transactions are exempt. Exempt securities include:
Securities issued by the United States or the state of New Mexico
Securities issued by certain non-profit organizations
Securities offered in certain private transactions
The NMUSA also requires that all broker-dealers, agents, and investment advisers who offer or sell securities in New Mexico be registered with the Securities Division.
Some of the key provisions of the NMUSA include:
Registration of securities: All securities offered for sale in New Mexico must be registered with the Securities Division, unless the securities or transactions are exempt.
Registration of broker-dealers, agents, and investment advisers: All broker-dealers, agents, and investment advisers who offer or sell securities in New Mexico must be registered with the Securities Division.
Anti-fraud provisions: The NMUSA prohibits fraud and other unfair practices in the sale of securities.
Enforcement: The Securities Division is responsible for enforcing the NMUSA. The Division can investigate alleged violations of the law and take enforcement actions, such as issuing cease-and-desist orders and imposing fines.
Tips for investors who are considering investing in securities in New Mexico:
Make sure the broker-dealer and investment adviser are registered with the New Mexico Securities Division. You can check the Division's website to see if a broker-dealer or investment adviser is registered.
Make sure the securities are registered with the New Mexico Securities Division. You can check the Division'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.
In addition to the New Mexico Uniform Securities Act, New Mexico investors are protected by the following federal laws and regulation:
To discuss your rights under New Mexico or federal securities law, schedule a consultation with our law firm.