The Secretary of State Securities Division strives to ensure the integrity of the securities marketplace through investigative actions as well as the registration and/or oversight of securities, securities dealers and brokers, investment advisors and their representatives; to enhance legitimate capital formation; and to minimize the burden and expense of regulatory compliance by legitimate business. The Division reviews prospective offerings of securities to ascertain that full and fair disclosure is made to potential securities investors and that the terms of offerings are not inherently fraudulent. The Division monitors the conduct of securities dealers and salespersons; investigates possible violations; and when the evidence warrants, initiates administrative or civil actions, or refers cases for criminal prosecution. The Division is staffed with numerous investigators, auditors and other professionals who serve to protect Nevada investors.
Securities Division Overview/Services:
Licensing and Registration
Nevada Securities Laws require that all persons who propose to act as a broker-dealer, broker-dealer agent (sales representative), investment advisor, investment advisor representative or associated persons, issuers and certain non-exempt transfer agents be registered with the Securities Division of the office of the Secretary of State prior to engaging in any securities related business activities, unless exempted from registration. The Securities Division is responsible for all phases of licensing and registration including the review and approval of applications for registration and proposed offerings of securities for sale in Nevada.
Compliance Inspection and Investigation
The Compliance Inspection arm of the Division is responsible for conducting periodic field inspections of broker-dealers and investment advisors registered in Nevada to ensure that both the firm and its employees are in compliance with Nevada Securities Laws. Inspections of books and records are used to determine whether there are any improprieties in the business conduct of the broker-dealers and investment advisors. The Divisions Compliance Inspectors have the authority and responsibility to refer any detected violations for investigation and possible administrative and/or civil action, and to obtain equitable remedies including the possible rescission of transactions and imposition of fines and/or penalties against the violators.
Securities Enforcement and Investigation
The Securities Enforcement arm of the Division conducts investigations into alleged securities violations, which are brought to the Divisions attention through proactive anti-fraud activities of division investigators, or through complaints, inquiries and information received from other agencies and sources. Most investigations by division securities enforcement personnel are prosecuted independently, but division enforcement investigators regularly cooperate with federal and local regulatory law enforcement agencies.
Securities Enforcement has the authority to issue cease and desist orders to stop securities violations, to deny, suspend or revoke a license and may bar individuals from participating in the securities industry. Securities Enforcement may also refer violations to the appropriate agencies for criminal prosecution, such as the Office of the Attorney General or District Attorney.
Free investor education materials may be picked up from the Las Vegas or Reno Offices of the Secretary of State (see below), may be mailed or may be obtained on this site under the Investor Education tab. Topics of interest include investment product information, investing wisely and how to recognize investment fraud.
Nevada Secretary of State Las Vegas Office
555 East Washington Ave, Suite 5200
Las Vegas, NV 89101