The Florida Securities and Investor Protection Act and How it Affects You

Sun, Aug 5, 2012

Estate Planning

The Florida Securities and Investor Protection Act protects Florida investors, in addition to other national SEC (U.S. Securities and Exchange Commission) laws. Sometimes called “Blue Sky” laws, each state has their own set of laws governing securities and their sales. Florida’s newest law was created in 2009 and shows Florida’s commitment to protecting its citizens.

If you are wondering exactly what a security is–Merriam-Webster defines securities as: “an instrument of investment in the form of a document (as a stock certificate or bond) providing evidence of its ownership”. Thus, this law is quite important to Florida investors who are working on financial and estate planning.

Florida’s securities protection lies with the Division of Securities in the Florida Office of Financial Regulation. They state their scope as the following:

“The [Florida] Division of Securities protects the investing public from unlawful securities activities through regulating the sale of securities in, to or from Florida. Regulated entities include firms (securities dealers, issuers and investment advisers), branch offices and individuals affiliated with these firms.”

Florida State Statute 517 delineates the Florida Securities and Investor Protection Act. There, Florida outlines rules and regulations designed to protect investors for unscrupulous investment activity. These range everywhere from failing to properly register to criminal penalties for fraudulent and misrepresentative investments.

This type of law goes a long way in protecting investors from scams and unethical companies/employees. Nevertheless, SmithLaw knows many have still fallen victim to disastrous scams. In fact, just this summer, the FBI (along with other various government agencies) busted some scammers. The fascinating details can be found here on their site.

Protect yourself by doing some background research on any broker you are considering. The SEC offers a fabulous resource for checking them out here on their site.

Image: Some rights reserved by PinkMoose



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