{"data":{"id":"us-ky/krs-292.500","jurisdiction":"us-ky","citation":"KRS 292.500","heading":"Administration of chapter.","body":"(1) The administration of the provisions of this chapter shall be under the Department\nof Financial Institutions.\n(2) It is unlawful for the commissioner or any of his or her officers or employees to use\nfor personal benefit any information which is filed with  or obtained by the\ncommissioner and which is not made public. Except as provided in subsection (19)\nof this section, no provision of this chapter authorizes the commissioner or any of\nthe department's officers or employees to disclose any confidential inf ormation\nexcept among themselves or when necessary or appropriate in an administrative\nhearing or investigation under this chapter. No provision of this chapter either\ncreates or derogates from any privilege which exists at common law or otherwise\nwhen doc umentary or other evidence is sought under a subpoena directed to the\ncommissioner or any of the department's officers or employees.\n(3) The commissioner may promulgate, amend, and repeal administrative regulations,\nforms, and orders as are necessary to ca rry out the provisions of this chapter,\nincluding administrative regulations and forms governing registration statements,\napplications, notice filings, and reports and defining any terms, whether or not used\nin this chapter, insofar as the definitions are not inconsistent with the provisions of\nthis chapter. For the purpose of administrative regulations and forms, the\ncommissioner may classify securities, persons, and matters within his jurisdiction,\nand prescribe different requirements for different classes.\n(4) No administrative regulation, form, or order may be promulgated, amended, or\nrepealed unless the commissioner finds that the action is necessary or appropriate in\nthe public interest or for the protection of investors and consistent with the purposes\nfairly intended by the policy and provision of this chapter. In promulgating\nadministrative regulations and forms, the commissioner may cooperate with the\nsecurities administrators of the other states and the Securities and Exchange\nCommission with a vie w to effectuating the policy of this statute to achieve\nmaximum uniformity in the form and content of registration statement, applications,\nnotice filings, and reports whenever practicable.\n(5) The commissioner may by administrative regulation or order prescribe the form and\ncontent of financial statements required under this chapter and the circumstances\nunder which consolidated financial statements shall be certified by certified public\naccountants. All financial statements shall be prepared in accordance  with generally\naccepted accounting standards.\n(6) All administrative regulations and forms of the commissioner shall be published.\n(7) No provision of this chapter imposing any liability applies to any act done or\nomitted in good faith in conformity with any administrative regulation, form, or\norder of the commissioner, notwithstanding that the administrative regulation, form,\nor order may later be amended or repealed or be determined by judicial or other\nauthority to be invalid for any reason.\n(8) A docum ent is filed when it is received by the commissioner or when the\ncommissioner receives confirmation that a document has been filed. The\ncommissioner may accept electronic filings of any documents required to be filed\nunder this chapter, either in conjuncti on with paper filings or in place of paper\nfilings in whole or in part.\n(9) Every administrative hearing shall be conducted in accordance with KRS Chapter\n13B and the provisions of this chapter, and shall be public unless the commissioner\nin his discretion grants a request joined in by all the respondents that the hearing be\nconducted privately.\n(10) The commissioner shall keep a record of all applications for registration and\nregistration statements and notice filings which are or have been effective under this\nchapter and a record of all denial, suspension, or revocation final orders which have\nbeen entered under this chapter.\n(11) The information contained in or filed with any registration statement, application, or\nnotice filing is a public record subjec t to the provisions of the Kentucky Open\nRecords Act.\n(12) Upon request and at reasonable charges as the commissioner prescribes, the\ncommissioner shall furnish to any person photostatic or other copies (certified under\nhis seal of office if requested) of any entry in the register or any document which is\na matter of public record. In any administrative hearing or prosecution under this\nchapter, any copy so certified is prima facie evidence of the contents of the entry or\ndocument certified.\n(13) The commis sioner in his or her discretion may honor requests from interested\npersons for interpretative opinions.\n(14) The commissioner may impose civil fines against any person who violates any\nprovision of this chapter or any rule or order or voluntary agreement e ntered into\nunder this chapter. The fine shall not exceed twenty thousand dollars ($20,000) per\nviolation, except when the violation is directed at or results in monetary damage to\none (1) or more individuals who are sixty (60) years of age or older, the\ncommissioner may impose an additional fine not to exceed twenty thousand dollars\n($20,000) per violation. Each act or transaction which violates this chapter or\nadministrative regulation, or orders or agreements entered into under this chapter,\nshall constitute a separate violation. Any employer or principal shall be jointly and\nseverally liable for fines imposed in connection with the conduct of employees or\nagents.\n(15) The commissioner is authorized to designate that the fines imposed for violations of\nthis chapter or administrative regulation, or any order or voluntary agreement\nentered into pursuant to this chapter, be deposited into the securities fraud\nprosecution and prevention fund established in KRS 292.322.\n(16) In addition to any fines imposed under subsection (14) of this section, the\ncommissioner may also assess the costs of any investigation, including attorney's\nfees incurred as a result of bringing enforcement actions under the provisions of this\nchapter and costs of holding any hearing as a result of an enforcement action. Costs\nand attorney's fees may only be imposed if there has been a final determination that\na violation has occurred, and in an amount reasonably related to the costs of\ninvestigation and enforcement for those violations only. Costs and attorney's fees\nmay be included as part of an agreement in settlement of an enforcement action.\n(17) If fines, fees, or costs imposed under this section are not paid, then the\ncommissioner may notify the Department of Revenue, which may institute an action\nin the name of the Commonwealth of Kentucky in the Franklin Circuit Court, or any\nother court of competent jurisdiction, for the recovery of the fines, fees, or costs.\n(18) The remedies provided by th is section are not exclusive and may be sought and\nemployed in any combination to enforce the provisions of this chapter. The\nremedies set forth in this section shall not prohibit or restrict the commissioner from\nparticipating in any way whatsoever with r espect to any joint examination,\ninvestigation, enforcement action, settlement, or other legal or regulatory action\nwith securities administrators of other jurisdictions, the Securities and Exchange\nCommission, any self -regulatory organization, or any nati onal securities exchange\nor national securities association registered under the Securities Exchange Act of\n1934, 15 U.S.C. secs. 78a et seq. Accordingly, the commissioner may, at any time\nand in his or her sole discretion, share or cause to be shared by a ny employee of the\ndepartment any information gained pursuant to an examination, investigation, filing,\nor from any other source, with other governmental agencies, jurisdictions, or\ngovernmental or self -regulating organizations or entities, to the extent t he\ncommissioner, in his or her sole discretion, deems that the sharing of information is\nor will be reasonably necessary or useful to the department or other agency in\ncarrying out its regulatory responsibilities.\n(19) The following materials, documentatio n, and other information are deemed to have\nbeen confidentially disclosed to the department and to be confidential information\nunder the Kentucky Open Records Act and, specifically, the provisions of KRS\n61.878(1)(b), to the extent described in this subsec tion and except as provided\nfurther in administrative regulation:\n(a) Any materials, documentation, or other information provided to or otherwise\nobtained by the department during the course of a routine compliance\nexamination of any broker -dealer, agent, investment adviser, or investment\nadviser representative;\n(b) Any materials, documentation, or other information that is part of an ongoing\ninvestigation; and\n(c) Any materials, documentation, or other information provided to or otherwise\nobtained by the d epartment from any other regulatory or governmental body,\nincluding but not limited to any other state securities regulator, the Securities\nand Exchange Commission, any self -regulatory organization, any state or\nfederal criminal agency, and any criminal pr osecutorial body, and which the\nother body expressly deems to be confidential.\n(20) (a) The confidential information specified in subsection (19)(a) and (b) of this\nsection may be released when required in a proper legal proceeding in which a\nsubpoena and protective order ensuring confidentiality has been issued by the\ntribunal.\n(b) The confidential information specified in subsection (19)(c) of this section\nmust be obtained from the entity which provided the information.","path":["KRS Chapter 292"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=15565","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:23Z","sha256":"f14f6961d31cddb0439c15254b8b16eb6e58653bce3c16d8b2a401c91f68610f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-292.490","next":"us-ky/krs-292.510"},"notice":"GroundRules: Original legal text. Not legal advice."}