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 Retail Franchising
Act (§ 13.1-557 et seq. of the Code of Virginia). It is designed to
implement the provisions of § 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 his 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.
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. American Stock Exchange.
2. Chicago Board Options Exchange.
3. Midwest Stock Exchange.
4. Municipal Securities Rulemaking
Board.
5. National Association of
Attorneys General.
6. NASDAQ Stock
Market, Inc.
7. New York Stock
Exchange.
8. North American
Securities Administrators Association, Inc.
9. Pacific Stock Exchange.
10. Philadelphia Stock Exchange.
11. Securities Investor Protection
Corporation.
12. National White
Collar Crime Center.
13. Financial
Industry Regulatory Authority, Inc.
14. Any other quasi-governmental entity which
demonstrates a need for access to confidential information.
Statutory Authority
§§ 12.1-13 and 13.1-572 of the Code of Virginia.
