Compliance


The following products or investment opportunities require compliance with the Securities Act of Montana and/or the Insurance Code. If you offer and sell these products, you are required to fully disclose all of the potential risks associated with the investment. The sale of these products requires compliance with the anti-fraud provisions of the Securities Act, even if they’re exempt from registration requirements.

If you have questions about compliance with the securities or insurance laws of Montana, talk to an attorney or contact your firm’s compliance department.


Multi-Level Marketing Companies

Multi-Level Marketing Companies must file a form with the Securities Department indicating they are going to do business in Montana. Unless they are principals of an MLM, Montana participants do not have to register with the department. However, you should be sure your company has complied with the filing requirement before doing any business.

Variable Annuities

You must be licensed with the Insurance Department and registered as a salesperson with a broker-dealer firm to sell variable annuities in Montana. Securities salespeople are required to take and pass either the 63 or 66 examination.



Private Placement Offerings

Private Placement Offerings require compliance with the Securities Act of Montana. Many of these offerings use one of several federal provisions that exempt the offering from the registration requirement. Montana recognizes some of these exemptions; however there may be “notice filing” requirements and salesperson registration requirements that must be followed.

Promissory Notes

Promissory Notes are securities and require compliance with the Securities Act of Montana. That means you as a salesperson and the note itself may need to be registered.



Viaticals

Engaging in viatical transactions require compliance with the Insurance Code, which provides for the licensing of viatical settlement brokers and viatical settlement providers. The sale of these products also requires compliance with the anti-fraud provisions of the Securities Act of Montana.

Living Trusts

You must be licensed to sell living trusts in Montana. One of the requirements to obtaining this license is registration as an investment adviser or investment adviser representative, which the State Auditor’s Office also registers.



Customer-Owned, Coin-Operated Telephones

(COCOTs) are securities and must be registered as securities with the securities department. Individuals selling COCOTs must be registered as securities sales persons.

Customer-Owned ATMs

These products may be securities, depending on how the investment opportunity is structured. Therefore, they must be registered as securities with the Securities Department, and individuals selling them must be registered as securities sales persons.




Need more help?
Call the Commissioner’s hotline at 800-332-6148