New Securities Service Brings Efficiency, Transparency

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Website gives issuers and the public access to documents

HELENA, Mont. – Montana Securities Commissioner Monica J. Lindeen announced this month the launch of the online Electronic Filing Depository (EFD) to make it faster and easier for securities issuers to file certain documents and pay fees – and for the public to inspect the same documents.

Developed by the North American Securities Administrators Association (NASAA) — of which Lindeen is a member — EFD is an online system that allows an issuer to submit the notices privately held companies are required to file whenever they sell securities to raise money. These forms are called a “Form D.”

The website also enables the public to search and view, free of charge, Form D filings made with state securities regulators. The EFD is available at:

“Technology drives a lot of our economy and it’s important our regulatory processes catch up,” Lindeen said. “The EFD makes the process of doing business easier and gives citizens transparent access to public documents.”

Issuers relying on the Rule 506 exemption do not have to register their offerings of securities with the SEC or the Montana Office of the Commissioner of Securities and Insurance, but they must file what is known as a “Form D” with the SEC and the CSI. Form D contains limited information about the securities being offered and the issuer offering those securities.

Lindeen said the EFD system initially will be limited to Form D filings for Regulation D, Rule 506 offerings, but added that NASAA expects the filing system will be expanded to include additional state securities registration and notice filing materials.

The EFD website offers a suite of tools to filers and regulators. The EFD system will be available 24 hours a day, seven days a week, unless the website is undergoing maintenance. In addition to the filing fees required by the states, there is a one-time $150 system use fee for each offering making its filings through EFD. This one-time system fee covers initial, amendment and renewal filings made through EFD.