United States: Can blue sky laws pass through clouds?
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Although their name implies perfect clarity, the Blue Sky Laws are notoriously unclear, especially when it comes to each state’s unique set of requirements. The ambiguity that plagues Blue Sky Laws stems from a lack of authority and direction at the state level to shed light on legality. While federal law may provide some insight, the lack of clear language poses compliance issues with respect to registration, filing, and other requirements related to the offering and sale of securities in some jurisdiction. Failure to comply with Blue Sky requirements, which vary by state and U.S. territory, may result in enforcement action by the state securities commission, including cease and desist orders. It can also lead to litigation for injunctive and other relief, or for refunds.
Harris Beach has developed an efficient and cost-effective method of conducting blue sky surveys for law firms and underwriters involved in municipal bond financings. With a focus on federal and state law, we review securities laws and regulations in all states and territories in which securities are offered for sale to the public, broker-dealers and financial institutions. Since tracking changes to blue sky laws can be tedious and complex legal analysis, our blue sky investigation preparation can ease this burden on lawyers, saving them time. and money. Relying on our services creates fewer demands on your resources while increasing your profitability.
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