Current through Register Vol. 50, No. 9, March 1, 2024
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
292.500(3) authorizes the
commissioner to promulgate administrative regulations necessary to carry out
the provisions of KRS Chapter 292.
KRS
292.500(18) authorizes the
commissioner to share information gained pursuant to an examination,
investigation, filing, or other source, with a governmental agency,
jurisdiction, or governmental or self-regulating organization or entity to the
extent the commissioner determines that the sharing of information is or will
be reasonably necessary or useful to the office or agency in carrying out its
regulatory responsibilities. This administrative regulation establishes the
requirements for release of confidential information pursuant to
KRS
292.500(17).
Section 1. Pursuant to
KRS
292.500(18), the
commissioner may disclose confidential information if the requirements
established in this section are met.
(1) The
commissioner may disclose the content of an investigation, examination report,
preliminary examination report or results, or other matter relating to the
preceding, to another governmental or regulatory authority, including the U.S.
Securities and Exchange Commission, the NASD, a state securities regulator, a
state or federal criminal agency, or a criminal prosecutorial body, if:
(a) The agency receiving the information
agrees in writing to hold it confidential; or
(b) The commissioner reasonably believes a
legitimate governmental purpose is served by the disclosure regardless of the
ability of the other agency to ensure the confidentiality of the disclosed
material.
(2) The
materials, documentation or other information referred to in subsection (1) of
this section shall lose their confidential status upon the termination of an
investigation or enforcement action where the information has been utilized by
this or another regulatory body against or with respect to the entity or person
that initially provided the materials to the office.
(3) Except as necessary for the office to
enforce the provisions of KRS Chapter 292, a consumer complaint or other
information relative to an investigation or examination shall remain
confidential pursuant to the provisions of
KRS
292.500(19) and exempt from
public disclosure after the documents would otherwise lose their confidential
status pursuant to the provisions of subsection (1) or (2) of this section, if
the public disclosure would:
(a) Jeopardize
the integrity of another active investigation, examination or
proceeding;
(b) Reveal the name,
address, telephone number, Social Security number, or other identifying number
or information of a complainant, customer, or account holder;
(c) Disclose the identity of a confidential
source;
(d) Disclose investigative
techniques or procedures; or
(e)
Reveal a trade secret.
(4) After five (5) years the commissioner may
destroy discarded or obsolete materials, documentation or other
information.
