{"data":{"id":"us-ky/krs-292.412","jurisdiction":"us-ky","citation":"KRS 292.412","heading":"Registration of securities Internet Web site operators.","body":"(1) This section applies to registrants operating an Internet Web site pursuant to KRS\n292.411(1)(r).\n(2) Broker-dealers registered pursuant to KRS 292.330 and operating an Internet Web\nsite, pursuant to KRS 292.411(1)(r), shall make an annual notice filing wi th the\ndepartment on a form prescribed by the commissioner, but shall be otherwise\nexempt from the provisions of this section.\n(3) In lieu of the registration requirements of KRS 292.330, a person may apply for\nregistration with the department as an Intern et Web site operator by filing an\napplication on a form prescribed by the commissioner that shall include the\nfollowing:\n(a) The Internet Web site operator is a business entity organized pursuant to the\nlaws of Kentucky, authorized to do business in Kentuc ky, and engaged\nexclusively in intrastate offers and sales of securities in Kentucky;\n(b) The Internet Web site operator is solely engaged in the business of operating\nan Internet Web site in accordance with this section and KRS 292.411(1)(r);\n(c) The iden tity, location, and contact information for the Internet Web site\noperator and any director, executive officer, general partner, managing\nmember, or other person with management authority designated by the\ncommissioner;\n(d) A statement that the Internet We b site operator or any director, executive\nofficer, general partner, managing member, or other person with management\nauthority of the Internet Web site operator has never been subject to any\nconviction, order, judgment, decree, or other action specified i n the Securities\nAct of 1933 Rule 17 C.F.R. sec. 230.506(d); and\n(e) Any other documents, certifications, or information the commissioner may\nrequire to administer and enforce the requirements of this section.\n(4) (a) An Internet Web site operator registered pursuant to this section shall:\n1. Charge a fee to an issuer for an offering of securities on the Internet Web\nsite only in a:\na. Fixed amount for each offering;\nb. Variable amount based on the length of time that securities are\noffered on the Internet Web site; or\nc. Combination of the fixed and variable amounts; and\n2. Comply with any other requirements that the commissioner, by\nadministrative regulation or order, d etermines is necessary or\nappropriate in the public interest or for the protection of investors.\n(b) An Internet Web site operator registered pursuant to this section shall not:\n1. Offer investment advice or recommendations;\n2. Solicit purchases, sales, or  offers to buy the securities offered or\ndisplayed on its Internet Web site;\n3. Compensate employees, agents, or other persons for the solicitation of\nsecurities or the sale of securities displayed or referenced on the Internet\nWeb site;\n4. Be compensated based on the amount of securities sold;\n5. Identify, promote, or otherwise refer to any individual security offered\non its Internet Web site in any advertising for the Internet Web site; or\n6. Hold, manage, possess, or handle purchaser funds or securities.\n(5) Each application filed pursuant to subsection (3) of this section shall be\naccompanied by the filing fee established by the commissioner and a surety bond\nfiled with the application in an amount satisfactory to the commissioner, but no less\nthan fifty  thousand dollars ($50,000). The surety bond shall be in favor of the\nCommonwealth and shall secure payment of costs, fines, and damages to any person\ndetermined by the commissioner, after a hearing conducted in accordance with KRS\nChapter 13B, to be aggri eved by an Internet Web site operator's violation of this\nsection and KRS 292.411.\n(6) Registration as an Internet Web site operator shall expire annually. Subsequent\nregistration may be issued upon filing of a written renewal application, on a form\nprescribed by the commissioner and upon payment of the renewal fee established by\nthe commissioner.\n(7) Each Internet Web site operator registered pursuant to the section shall make and\nkeep all accounts, correspondence, memoranda, papers, books, and other recor ds\nwhich the commissioner prescribes by administrative regulation or order. All\nrequired records shall be:\n(a) Preserved for three (3) years, unless the commissioner, by administrative\nregulation or order, prescribes otherwise for specified types of records; and\n(b) 1. Kept within this state; or\n2. At the request of the commissioner be made available at any time for\nexamination by the department in the principal office of the registrant, or\nby production of exact copies to the department.\n(8) The commission er may conduct examinations of any Internet Web site operator\nregistered pursuant to this section:\n(a) 1. At a date and time specified by the commissioner; and\n2. Within the scope determined by the commissioner;\n(b) Without prior notice to the Internet Web site operator; and\n(c) The Internet Web site operator shall pay the reasonable expense attributable to\nany examination, not to exceed an amount prescribed by the commissioner by\nadministrative regulation.\n(9) If any change occurs that results in an Intern et Web site operator no longer meeting\nthe minimum requirements for registration as set forth in this section, the Internet\nWeb site operator shall provide notice of such change to the commissioner as soon\nas practicable after discovery. Within thirty (30)  days of delivery of the notice\nprovided in this subsection, the Internet Web site operator shall, unless otherwise\npermitted or directed by the commissioner, cease and desist from operating an\nInternet Web site operator pursuant to KRS 292.411(1)(r).\n(10) The commissioner may deny, refuse to renew, condition, limit, suspend, or revoke\nthe registration of an Internet Web site operator for any of the grounds set forth in\nKRS 292.337, which are applicable to a broker-dealer, agent, investment adviser, or\ninvestment adviser representative.\n(11) Except as provided in subsection (12) of this section, the commissioner shall not\nissue an order pursuant to subsection (10) of this section without appropriate notice\nto the applicant or registrant, opportunity for a he aring, and written findings of fact\nand conclusions of law in accordance with KRS Chapter 13B.\n(12) The commissioner may take emergency action against an applicant or registrant, in\naccordance with the provisions set forth in KRS 13B.125, if such action is  in the\npublic interest and there is substantial evidence of a violation of law that constitutes\nan immediate danger to the public health, safety, or welfare.","path":["KRS Chapter 292"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44264","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:23Z","sha256":"1c31f6b33fcaffe8085fad364f1c8efc6e6e1ed051459d630391be0914d77f4e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-292.411","next":"us-ky/krs-292.415"},"notice":"GroundRules: Original legal text. Not legal advice."}