The activities of the Department of Securities consist of
receiving and processing applications for registration or
exemption of securities, business opportunities, takeovers
and subdivided land offered in and/or from the state of
Oklahoma, including reviewing the offering documents and
sales material to be used; receiving and processing
applications for registration of broker-dealers, agents,
investment advisers, and investment adviser representatives;
periodic on-site examining of registrants for compliance
with the applicable acts; disseminating information through
public lectures, programs, correspondence, and the press, so
that professional groups and the public at large may become
better acquainted with the requirements and provisions of
the acts subject to the jurisdiction of the Department;
investigating complaints concerning the offer and/or sale of
securities, business opportunities, and subdivided land;
taking administrative actions upon notice of violations of
the acts; taking civil action where necessary; making
criminal referrals to appropriate law enforcement officials,
and/or by assisting in such prosecutions. The Department
also receives filings of the final documents for bonds,
notes or other evidences of indebtedness of any public
trust.
Two methods of accomplishing the Commission’s objectives
are the registration of securities and the registration of
broker-dealers and investment advisers. Securities
registration is intended to provide adequate and accurate
disclosure of material facts concerning the issuer and the securities it intends to
offer and sell. Such disclosure is intended to assist the
investor in making an informed investment decision that
meets his or her needs and goals. Securities registration
requires but does not guarantee the accuracy of the facts
represented by the persons responsible for the registration.
The Oklahoma securities laws prohibit false and misleading
statements under penalty of fine, imprisonment, civil
penalty or administrative sanction. The laws also provide
for recovery of damages by wronged investors in civil court
actions. The Commission has no authority to award damages to
wronged investors. The basic rule is that all securities
must be registered before they are offered or sold. However,
there are specific exemptions from registration for certain
securities and securities transactions. Those exemptions are
listed in the
Oklahoma Uniform Securities Act of 2004. Whether or not
securities are
exempt from registration, the antifraud provisions of the
law apply to all offers and sales. The registration of
broker-dealers and investment advisers is another way the
commission accomplishes its objectives. Broker-dealers,
investment advisers and their agents and representatives
must be registered before conducting business in Oklahoma
unless fitting within exemptions for certain situations.
Such registration must be must be kept current with periodic
renewals and amendments showing significant changes in
financial conditions and other important facts.
Broker-dealers and investment advisers must conform their
conduct and business practices to the standards prescribed
by Oklahoma law. Violation of registration requirements or
engaging in dishonest or unethical business practices
subject these securities professionals to administrative,
civil and possible criminal sanctions.
The enforcement duties of the Commission include
investigation of possible violations of the Oklahoma
securities laws and the
taking of appropriate administrative or civil action or the
making of criminal referrals to the appropriate law
enforcement agencies. Possible violations are revealed
primarily through investor complaints or inquiries,
referrals from other agencies, or the Commission’s own
investigations. When investigations warrant further action,
the Administrator may decide to issue subpoenas, take
testimony or conduct hearings, commence administrative
actions, file civil actions in court or pursue other action
as appropriate.