§5605. Rules, forms, orders, interpretative opinions, and hearings

Link to law: http://legislature.vermont.gov/statutes/section/09/150/05605
Published: 2015

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Commerce and Trade








5605. Rules, forms, orders, interpretative opinions, and hearings

(a) The

Commissioner may:

(1) issue forms

and orders and, after notice and comment and in accordance with the provisions

of 3 V.S.A. chapter 25 (Administrative Procedure Act), may adopt and amend

rules necessary or appropriate to carry out this chapter and may repeal rules,

including rules and forms governing registration statements, applications,

notice filings, reports, and other records;

(2) by rule,

define terms, whether or not used in this chapter, but those definitions may

not be inconsistent with this chapter; and

(3) by rule,

classify securities, persons, and transactions and adopt different requirements

for different classes.

(b) Under this

chapter, a rule or form may not be adopted or amended, or an order issued or

amended, unless the Commissioner finds that the rule, form, order, or amendment

is necessary or appropriate in the public interest or for the protection of

investors and is consistent with the purposes intended by this chapter. In

adopting, amending, and repealing rules and forms, section 5608 of this chapter

applies in order to achieve uniformity among the states and coordination with

federal laws in the form and content of registration statements, applications,

reports, and other records, including the adoption of uniform rules, forms, and


(c) Subject to

15 U.S.C. § 80b-15(h) and 15 U.S.C. § 80b-222, the Commissioner may require

that a financial statement filed under this chapter be prepared in accordance

with generally accepted accounting principles in the United States and comply

with other requirements specified by rule adopted or order issued under this

chapter. A rule adopted or order issued under this chapter may establish:

(1) subject to

15 U.S.C. § 80b-15(h), the form and content of financial statements required

under this chapter;

(2) whether

unconsolidated financial statements must be filed; and

(3) whether

required financial statements must be audited by an independent certified

public accountant.

(d) The

Commissioner may in the Commissioner's sole discretion provide interpretative

opinions or issue determinations that the Commissioner will not institute a

proceeding or an action under this chapter against a specified person for

engaging in a specified act, practice, or course of business if the

determination is consistent with this chapter. A rule adopted or order issued

under this chapter may establish a reasonable charge for interpretative

opinions or determinations that the Commissioner will not institute an action

or a proceeding under this chapter.

(e) A penalty

under this chapter may not be imposed for and liability does not arise from

conduct that is engaged in or omitted in good faith believing it conforms to a

rule, form, or order of the Commissioner under this chapter.

(f) A hearing in

an administrative proceeding under this chapter must be conducted in public

unless the Commissioner for good cause consistent with this chapter determines

that the hearing will not be so conducted. (Added 2005, No. 11, § 1, eff. July

1, 2006.)