Securities
Division Functions
Enforcement Team
The Enforcement Team is comprised of the Division’s special agents, enforcement attorneys, and financial investigators. They are charged with the detection and prevention of violations of North Carolina securities laws. This includes fraud committed in connection with the sale of securities, illegal sales of unregistered securities, and sales of securities by unregistered dealers. The Enforcement Team engages in the vigorous enforcement of the state’s securities laws, placing a significant emphasis on criminal prosecution of individuals who engage in fraud in connection with the sale of securities.
The Enforcement Team also works to impose administrative sanctions on violators of the state’s securities laws, including denial, revocation, or suspension of registrations; cease and desist orders prohibiting or suspending the sale of securities or prohibiting fraudulent conduct; administrative fines; revocation of exemptions from registration; and cease publication orders.
Registration Team
The Registration Team reviews all applications to register securities for sale in North Carolina to ensure that there is compliance with North Carolina securities laws and that investors have access to full and fair disclosure of all relevant investment information. They also process notice filings to sell securities in the state in circumstances where state registration is not required, and answer questions from the public concerning securities registration requirements and the status of securities registration applications.
Additionally, the Registration Team processes and reviews the applications for registration and renewal of registration for firms and individuals selling securities or offering investment advice in North Carolina. The review process for registration includes a thorough examination of each application with an emphasis on the proposed plan of business, financial condition, and disciplinary history of applicants.
The Securities Division participates in the Central Registration Depository system (CRD) and Investment Adviser Registration Depository (lARD) system. Together, these systems, developed by the North American Securities Administrators Association (NASAA), the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority (FINRA), allow dealers and investment advisers to apply for registration of their salesmen and investment adviser representatives in all desired states via a single form filed at a central location. Fees collected through the CRD/ IARD system are transmitted to the state weekly via electronic funds transfer. Publicly available information regarding dealers, salesmen, investment advisers and investment adviser representatives registered in North Carolina is available at FiNRA’s BrokerCheck.