March 30, 2023 -- The Colorado Division of Securities (“Division”) is providing notice that on March 30, 2023, new rules adopted by the Securities Commissioner have become effective. The Colorado Securities Act and rules can be found on the Division’s website at Statutes and Rules. The Statement and Basis of Purpose and a redlined copy of the rules can be found on the Division's website at Rule Making Notices and Opinions.
A summary of the more significant changes includes amendments to the following Rules:
- Rule 51-4.7 This rule was amended to incorporate U.S. Securities & Exchange Commission Regulation Best Interest and includes a violation of the rule as unfair and dishonest dealings.
- Rule 51-4.4.1(IA) The amended rule adds a continuing education requirement for all licensed investment adviser representatives. This rule adopts a North American Securities Administrators Association (“NASAA”) model rule.
- Rule 51-4.6(IA) This amended rule cleans up the books and records requirements for investment advisers and provides clarity for certain books and records requirements.
- Rule 51-4.8(IA)(P) This rule was amended to clarify the requirement that an investment adviser, investment adviser representative or federal covered adviser include specific information required by Part 2 of Form ADV in every advisory contract. This rule adopts a NASAA model rule.
- Rule 51-4.12(IA) This rule was amended to require investment advisers to establish, maintain and enforce specific written policies and procedures. This rule adopts a NASSA model rule.
If you have any questions or need to contact the Division about the rules, our phone number is 303-894-2320 or you can email us at dora_SecuritiesWebsite@state.
The Department of Regulatory Agencies (DORA) is the state's umbrella regulatory agency, charged with managing licensing and registration for multiple professions and businesses, implementing balanced regulation for Colorado industries, and protecting consumers. Our nearly 600 employees are dedicated to preserving the integrity of the marketplace and promoting a fair and competitive business environment throughout Colorado.
The Division of Securities exists to protect investors and maintain confidence in the securities market, while avoiding unreasonable burdens on the marketplace by licensing securities professionals, enforcing securities law violations, and helping Coloradans become more informed investors.