New Jersey Administrative Code
Title 13 - LAW AND PUBLIC SAFETY
Chapter 47A - BUREAU OF SECURITIES
Subchapter 12A - INTRASTATE OFFERING (CROWDFUNDING) EXEMPTION
Section 13:47A-12A.10 - Measures to reduce risk of fraud
Universal Citation: NJ Admin Code 13:47A-12A.10
Current through Register Vol. 56, No. 18, September 16, 2024
(a) An Internet site operator in a transaction involving the offer or sale of securities pursuant to N.J.S.A. 49:3-50(b)(14) shall have a reasonable basis for believing that:
1. An
issuer seeking to offer and sell securities pursuant to
N.J.S.A.
49:3-50(b)(14) through the
Internet site operator's internet site complies with the requirements of this
subchapter. In satisfying this requirement, an Internet site operator may rely
on the representations of the issuer concerning compliance with these
requirements unless the Internet site operator has reason to question the
reliability of those representations; and
2. An issuer seeking to offer and sell
securities pursuant to
N.J.S.A.
49:3-50(b)(14) has
established means to keep accurate records of the holders of the securities it
would offer and sell through the Internet site operator's internet site,
provided that an Internet site operator may rely on representations of the
issuer concerning its means of recordkeeping unless the Internet site operator
has reason to question the reliability of those representations.
(b) An Internet site operator in a transaction involving the offer or sale of securities pursuant to N.J.S.A. 49:3-50(b)(14) shall deny access to its internet site to an issuer if the Internet site operator has a reasonable basis for believing that:
1. The
issuer or any of its executive officers, directors, managing members, other
persons occupying a similar status or performing similar functions in the name
of and on behalf of the issuer, and a person owning 10 percent or more of the
outstanding securities of the issuer is subject to the disqualifying criteria
set forth in
N.J.A.C.
13:47A-12A.2(b);
i. In determining whether the Internet site
operator has a reasonable basis of belief, the Bureau shall take into
consideration whether the Internet site operator conducted a background and
securities enforcement regulatory history check on each issuer whose offering
is on its internet site and on each officer, director, or person owning 10
percent or more of the outstanding securities of the issuer.
2. The issuer or the offering
violates the anti-fraud section of the Uniform Securities Law as set forth in
N.J.S.A.
49:3-52.
Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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