Illinois Blue Sky Laws
The offering, sale and purchase of securities in Illinois is governed by the Illinois Securities Law of 1953 – 815 ILCS 5/1. The Act provides for registration of securities, licensing and regulation of securities broker-dealers, agents, investment advisers, and investment adviser representatives.
Subject to statutory exemptions or exceptions, offers and sales of securities in Illinois which are not covered by federal securities law must be registered by coordination or qualification procedures, as applicable. Registration statements for offerings registered by qualification in Illinois must contain full and fair disclosure of all material facts respecting the investment offered, and present specific categories of information and financial statements as prescribed by the Illinois Securities Law of 1953. Use of a prospectus, registration statement or offering memorandum is required. Offerings registered by qualification are subject to limited merit review, and certain standards are prescribed by regulation relating, among other things, to underwriting expenses, selling expenses, options and warrants issued to underwriters, promoters’ equity, and the provisions and terms of debt securities.
The Secretary of State is granted authority to create by rule or regulation a limited offering transactional exemption that furthers the objectives of compatibility with federal exemptions and uniformity among the states.