Colorado § 11-51-704 - Rules, forms, and orders.

§ 11-51-704. Rules, forms, and orders.

(1) The securities commissioner may, from time to time, make, amend, and rescind such rules, forms, and orders as are necessary to carry out the provisions of this article, including rules and forms governing registration statements, applications, and reports, and defining any terms, whether or not used in this article, insofar as the definitions are not inconsistent with the provisions of this article. For the purpose of rules and forms, the securities commissioner may classify securities, persons, and matters within the securities commissioner's jurisdiction and prescribe different requirements for different classes.

(2) No rule, form, or order may be made, amended, or rescinded unless the securities commissioner finds that the action is necessary or appropriate in the public interest and is consistent with the purposes and provisions of this article. In prescribing rules and forms, the securities commissioner may cooperate with the securities and exchange commission with a view to effectuating the policy of this article to achieve maximum uniformity in the form and content of registration statements, applications, and reports wherever practicable.

(3) The securities commissioner may, by rule or order, prescribe the form and content of financial statements required under this article, the circumstances under which consolidated financial statements shall be filed, and whether any required financial statements shall be certified by independent or certified public accountants. Unless the securities commissioner by rule or order provides otherwise, a financial statement required under this article must be prepared in accordance with generally accepted accounting principles or other accounting principles as are prescribed for the issuer of the financial statement by the securities and exchange commission.

(4) No provision of this article imposing any liability upon a person or providing a basis for any sanction against a person applies to any act done or omitted in good faith and in conformity with any rule, form, or order of the securities commissioner, notwithstanding that the rule, form, or order may later be amended or rescinded or be determined by any judicial or other authority to be invalid for any reason.

Source: L. 90: Entire article R&RE, p. 735, § 1, effective July 1.

Editor's note: This section is similar to former § 11-51-118 as it existed prior to 1990.

ANNOTATION

Law reviews. For article, "Criminal Prosecutions under the Colorado Securities Act", see 47 U. Colo. L. Rev. 233 (1976).

Annotator's note. The following annotations include cases decided under former provisions similar to this section.

Proceedings may be instituted by order. Proceedings need not be commenced by a complaint, but may be instituted by the issuance of an order setting forth the facts and conduct warranting a "show cause" order. Raymond Lee Org., Inc. v. Sec. Comm'n, 36 Colo. App. 417, 543 P.2d 75 (1975), rev'd on other grounds, 192 Colo. 112, 556 P.2d 1209 (1976).

The commissioner properly relied on factors stated in federal case law to construe the public interest standard in denying an application for licensure, as § 11-51-101 explicitly requires that state orders be coordinated with federal securities law and the federal standards are reasonable. Westmark Asset Mgmt. Corp. v. Joseph, 37 P.3d 516 (Colo. App. 2001) (applying factors stated in Steadman v. Sec. and Exch. Comm'n, 603 F.2d 1126 (5th Cir. 1979)).

Applied in Lowery v. Ford Hill Inv. Co., 37 Colo. App. 260, 548 P.2d 127 (1976).