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The Utah Uniform Securities Act provides 31 exemptions from registration in section 61-1-14. The Division has created 6 additional exemptions by rule. Furthermore, several of the statutory exemptions have been expanded by rule. Exemptions are divided into two groups. Subsection (1) provides exemptions for securities themselves based on the type of security being offered or sold. Subsection (2) provides exemptions for specific types of transactions regardless of the type of security being offered or sold. Some exemptions may be used by issuers only, while other exemptions are limited to non-issuers and some exemptions may be used by either issuers or non-issuers. Filing Requirements: Some exemptions require a filing with the Division to claim the exemption, while other exemptions are self-executing and do not require a filing. See Exemptions Table for a list of exemptions that require a filing. Regardless of whether an exemption is self-executing, a request for confirmation may be filed for any exemption. The filing fee for all exemptions, except investment companies filed under 61-1-14(1)(k), is $60. The filing fee for investment companies is $600. See Fee Schedule Burden of Proof: Any person that relies on an exemption has the burden to prove they qualify for the exemption. See section 61-1-14.5 Anti-fraud: There are no exemptions from the anti-fraud provisions of the Act. An exemption only permits a person to offer or sell a security without registering the security. Accordingly, individuals offering or selling exempt securities may have additional disclosure requirements to satisfy the anti-fraud provisions. See section 61-1-1 Agent licensing: While exemptions do not exempt you from the licensing provisions, there are some limited licensing exceptions if you qualify for certain exemptions. Agents representing issuers, but not broker-dealers, who receive no compensation, direct or indirect for offering or selling securities that are exempt under subsections (1 )(a), (b), (c), (i) or (j), or all of subsection (2), are not required to license as an agent because of an exception in the definition of "agent." See 61-1-13(1)(b). Exemptions Table: This table provides a quick reference for all exemptions. |
