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I thought the National Securities Markets Improvement Act of 1996 (“NSMIA”) preempted all state regulation of Rule 506 offerings. How can you ask for licensing information?

April 26, 2017ACT improvement Markets National preempted securities State

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I thought the National Securities Markets Improvement Act of 1996 (“NSMIA”) preempted all state regulation of Rule 506 offerings. How can you ask for licensing information?

1 Answer

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While NSMIA preempted the states from conducting a substantive review of the merits of a Rule 506 offering, it left intact the states’ ability to require a notice filing and did not affect state licensing responsibilities or the investigation of fraudulent conduct.