SECURITIES 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.
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 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 are generally securities and likely require compliance with the Securities Act of Montana. That means you as a salesperson and the note itself may need to be registered.
Engaging in viatical transactions requires compliance with both the Montana Insurance Code and the Securities Act of Montana. These provide the licensing requirements for viatical settlement brokers and viatical settlement providers. The sale of these products also requires compliance with the anti-fraud provisions of Montana law.
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.
These products may be securities, depending on how the investment opportunity is structured. Therefore, they must be registered as securities with the CSI Securities Division, and individuals selling them must be registered as securities salespersons.