Current through Register Vol. 41, No. 3, September 23, 2024
A. This section governs the disclosure by the
commission of information or documents obtained or prepared by any member,
subordinate or employee of the commission in the course of any examination or
investigation conducted pursuant to the provisions of the Securities Act
(§ 13.1-501 et seq. of the Code of Virginia). It is designed to implement
the provisions of §§ 13.1-518 and 13.1-567 that permit disclosure of
information to governmental and quasi-governmental entities approved by rule of
the commission.
B. The Director of
the Division of Securities and Retail Franchising or the director's designee is
hereby authorized to disclose information to the entities enumerated in
subsections D, E, and F of this section. Disclosure shall be made only for the
purpose of aiding in the detection or prevention of possible violations of law
or to further administrative, legislative or judicial action resulting from
possible violations of law. As a condition precedent to disclosure a writing
shall be obtained from the receiving entity undertaking that it will exercise
reasonable measures to preserve the confidential nature of the
information.
C. Disclosure may be
made only under the following circumstances:
1. In response to an entity's request for
information relating to a specific subject or person.
2. By disseminating to an entity information
which may indicate a possible violation of law within the administrative,
regulatory or enforcement responsibility of that entity.
3. To participate in a centralized program or
system designed to collect and maintain information pertaining to possible
violations of securities, investment advisory, retail franchising or related
laws.
4. To the extent necessary
for participation in coordinated examinations or investigations.
D. The following are approved
governmental entities (including any agencies, bureaus, commissions, divisions
or successors thereof) of the United States:
1. Board of Governors of the Federal Reserve
System or any Federal Reserve Bank.
2. Commodity Futures Trading
Commission.
3. Congress of the
United States, including either House, or any committee or subcommittee
thereof.
4. Department of
Defense.
5. Department of Housing
and Urban Development.
6.
Department of Justice.
7.
Department of Treasury.
8. Federal
Deposit Insurance Corporation.
9.
Office of Thrift Supervision.
10.
Federal Trade Commission.
11.
Postal Service.
12. Securities and
Exchange Commission.
13.
Comptroller of the Currency.
14.
Federal Bureau of Investigation.
15. Any other federal agency or
instrumentality which demonstrates a need for access to confidential
information.
16. Virginia General
Assembly, including the House or the Senate, or any committee or subcommittee
thereof.
E. The
following are approved nonfederal governmental entities:
1. The securities or retail franchising
regulatory entity of any state, territory or possession of the United States,
the District of Columbia, and the Commonwealth of Puerto Rico, state
legislative bodies and state and local law-enforcement entities involved in the
detection, investigation or prosecution of violations of law.
2. The securities or retail franchising
regulatory entity of any foreign country, whether such entity is on a national,
provincial, regional, state or local level, and law-enforcement entities within
such countries.
F. The
following are approved quasi-governmental entities:
1. Municipal Securities Rulemaking
Board.
2. National Association of
Attorneys General.
3.
NASAA.
4. Securities Investor
Protection Corporation.
5. National
White Collar Crime Center.
6.
FINRA.
7. Any other
quasi-governmental entity that demonstrates a need for access to confidential
information.
Statutory Authority
§§ 12.1-13 and 13.1-523 of the Code of Virginia.
