Ohio § 1707.20

§ 1707.20.

(A)(1) The division of securities may adopt, amend, and rescind such rules, forms, and orders

as are necessary to carry out sections 1707.01 to 1707.50 of the Revised Code , including rules and forms governing registration statements, applications, and reports,

and defining any terms, whether or not used in sections 1707.01 to 1707.50 of the Revised Code , insofar as the definitions are not inconsistent with these sections.  For the purpose of rules and forms, the division may classify securities, persons,

and matters within its jurisdiction, and prescribe different requirements for different

classes. (2) Notwithstanding sections 121.71 to 121.75 of the Revised Code , the division may incorporate by reference into its rules any statute enacted by

the United States congress or any rule, regulation, or form promulgated by the securities

and exchange commission, or by another federal agency, in a manner that also incorporates

all future amendments to the statute, rule, regulation, or form. (B) No rule, form, or order may be made, amended, or rescinded unless the division finds

that the action is necessary or appropriate in the public interest or for the protection

of investors, clients, prospective clients, state retirement systems, or the workers'

compensation system and consistent with the purposes fairly intended by the policy

and provisions of sections 1707.01 to 1707.50 of the Revised Code .  In prescribing rules and forms and in otherwise administering sections 1707.01 to 1707.50 of the Revised Code , the division may cooperate with the securities administrators of the other states

and the securities and exchange commission with a view of effectuating the policy

of this section to achieve maximum uniformity in the form and content of registration

statements, applications, reports, and overall securities regulation wherever practicable. (C) The division may by rule or order prescribe: (1) The form and content of financial statements required under sections 1707.01 to 1707.50 of the Revised Code ; (2) The circumstances under which consolidated financial statements will be filed; (3) Whether any required financial statements shall be certified by independent or certified

public accountants.  All financial statements shall be prepared in accordance with generally accepted

accounting practices. (D) All rules and forms of the division shall be published;  and in addition to fulfilling

the requirements of Chapter 119. of the Revised Code, the division shall prescribe,

and shall publish and make available its rules regarding the sale of securities, the

administration of sections 1707.01 to 1707.50 of the Revised Code , and the procedure and practice before the division. (E)(1) No provision of sections 1707.01 to 1707.50 of the Revised Code imposing any liability applies to any act done or omitted in good faith in conformity

with any rule, form, or order of the division of securities, notwithstanding that

the rule, form, or order may later be amended or rescinded or be determined by judicial

or other authority to be invalid for any reason, except that the issuance of an order

granting effectiveness to a registration under section 1707.09 or 1707.091 of the Revised Code for the purposes of this division shall not be deemed an order other than as the

establishment of the fact of registration. (2) No provision of sections 1707.01 to 1707.50 of the Revised Code imposing any liability, penalty, sanction, or disqualification applies to any act

done or omitted in good faith in conformity with either of the following: (a) Any provision of sections 1707.01 to 1707.50 of the Revised Code that incorporates by reference a federal statute, rule, regulation, or form; (b) Any rule, form, or order of the division that incorporates by reference a federal

statute, rule, regulation, or form. Division (E)(2) of this section applies notwithstanding that the incorporation by

reference, or any application of the incorporated provision, is later determined by

judicial or other authority to be unconstitutional or invalid for any reason.