In Pennsylvania, investors have rights and protections under many laws and regulations.
The Pennsylvania Securities Act of 1972 is a state law that regulates the offer and sale of securities in Pennsylvania. The Act is modeled after the Uniform Securities Act, which is a model law adopted by many other states.
The PSA defines a security as "any note, stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, investment contract, or any other investment security, or any interest or instrument commonly known as a security."
The Act requires that all securities offered or sold in Pennsylvania be registered with the Pennsylvania Department of Banking and Securities, unless an exemption applies. The exemptions are designed to allow for the sale of securities without registration in certain limited circumstances, such as when the securities are offered to a small number of investors or when they are offered through an established securities exchange.
The Act also prohibits certain fraudulent and deceptive practices in connection with the sale of securities. These prohibited practices include making false or misleading statements about a security, omitting material information about a security, and engaging in manipulative or deceptive trading practices.
The Pennsylvania Department of Banking and Securities and private attorneys are responsible for enforcing the Act.
Here are some of the key provisions of the Act:
Securities must be registered with the Pennsylvania Department of Banking and Securities before they can be offered or sold in Pennsylvania.
There are a number of exemptions from registration, such as for securities offered to a small number of investors or through an established securities exchange.
Fraudulent and deceptive practices in connection with the sale of securities are prohibited.
Here are some additional resources that you may find helpful:
Pennsylvania Department of Banking and Securities: https://www.dobs.pa.gov/
In addition to the Pennsylvania Securities Act of 1972, the following federal laws protections to investors:
If you live in Pennsylvania and have been harmed by securities fraud or misconduct, contact our law firm to discuss your rights and options.