Ariz. Admin. Code § 14-4-143

Current through Register Vol. 30, No. 25, June 21, 2024

Section R14-4-143 - General Dissemination of Information on the Internet

A. Dealers and salesmen who use the Internet to distribute information on products and services directed generally to anyone having access to the Internet shall not be deemed to be selling, purchasing, or offering to sell or buy any securities in Arizona for purposes of Article 4 of the Securities Act of Arizona based solely on that activity if the following conditions are observed:

1. The Internet communication includes a clear and prominent statement that the dealer or salesman may only sell, purchase, or offer to sell or buy any securities in Arizona if first compliant with or exempt from registration requirements.

2. The dealer or salesman complies with the statement contained in the Internet communication under subsection (A)(1).

3. The Internet communication is subject to a mechanism, policy, or procedure reasonably designed to ensure that, prior to any sale, purchase, or offer to sell or buy in connection with prospective customers or clients in Arizona, the dealer or salesman is first compliant with or exempt from registration requirements.

4. The Internet communication does not involve either effecting or attempting to effect transactions in securities, the rendering of investment advice for compensation, or individualized solicitation or negotiations for the sale of investment advisory services in Arizona.

5. In the case of a salesman:

a. The affiliation with a dealer is prominently disclosed in the Internet communication.

b. The dealer with whom the salesman is associated first authorizes the Internet communication.

c. The dealer with whom the salesman is associated retains responsibility for reviewing and approving the content of any Internet communication.

d. In distributing information through the Internet, the salesman acts within the scope of the authority granted by the dealer.

B. Compliance with this Section relieves the dealer or salesman from registration requirements only. The dealer or salesman is subject to Article 13 of the Securities Act of Arizona and related regulations.

Ariz. Admin. Code § R14-4-143

New Section adopted by final rulemaking at 6 A.A.R. 547, effective January 14, 2000 (Supp. 00-1).