NASAA Members Vote to Adopt Statement of Policy Regarding Use of Electronic Offering Documents and Electronic Signatures

The membership of the North American Securities Administrators Association on May 8, 2017 voted to adopt a Statement of Policy regarding the Use of Electronic Offering Documents and Electronic Signatures. A copy of the adopted Statement of Policy is available here.

Background
As technology continues to progress and permeate through more aspects of the securities industry, it has become increasingly important for state regulators to address the appropriate use of technology when conducting a securities offering. Several issuers have begun implementing technologies that allow prospective investors to receive electronic offering documents and electronic subscription agreements, as well as the ability to execute these documents using an electronic signature. These issuers have sought relief through various methods, including requesting no-action relief, to receive state approval of these initiatives.

As more issuers seek to implement similar programs, NASAA members have adopted a Statement of Policy to provide a tool that allows NASAA jurisdictions to establish uniform guidelines to govern these initiatives and to streamline the process for industry participants. The Statement of Policy addresses the requirements and restrictions to which an issuer is subject should they choose to engage in an electronic initiative, such as providing offering documents and/or subscription agreements electronically, as well as allowing these documents to be executed using an electronic signature.

 

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Regulatory Activity