Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
292.410(1)(q)
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
292.500(3) authorizes
commissioner to promulgate administrative regulations necessary to carry out
the provisions of KRS Chapter 292.
KRS
292.410(1)(q) authorizes the
commissioner to exempt from
KRS
292.330 to
292.390
a transaction for which the commissioner finds that registration is not
necessary or appropriate in the public interest or for the protection of an
investor. This administrative regulation establishes an exemption for a
qualified professional service corporation from the requirements established in
KRS
292.340 to
292.390.
Section 1.
(1) Pursuant to
KRS
292.410(1)(q), a security
that is issued by a professional service corporation, a professional limited
liability company, or a professional limited liability partnership and that
meets the requirements established in subsection (3) of this section shall:
(a) Be exempt from
KRS
292.340 to
292.390;
and
(b) Not be required to file a
claim of exemption with the office.
(2) A person who receives a commission or
other remuneration in connection with a sale made pursuant to the exemption
established in subsection (1) of this section shall not be relieved of
compliance with the requirements of
KRS
292.330.
(3) The exemption established in subsection
(1) of this section shall apply if:
(a) The
security is issued by a professional service corporation organized under KRS
Chapter 274 or substantially similar legislation enacted in another state, a
professional limited liability company organized under KRS Chapter 275 or
substantially similar legislation enacted in another state, or a professional
limited liability partnership organized under KRS Chapter 362 or substantially
similar legislation enacted in another state that complies with the ownership
and retransfer restrictions established by applicable laws;
(b) The security is sold to a professional
person;
(c) The seller reasonably
believes that each buyer is purchasing for investment; and
(d) Each professional is provided access to
information concerning the professional service corporation or other
entity.
STATUTORY AUTHORITY:
KRS
292.410(1)(q),
292.500(3)
