{"data":{"id":"us-ok/okla.-stat.-tit.-71-71-1-601","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 71, § 71-1-601","heading":"Administration — Creation of Oklahoma Securities","body":"Commission and Department of Securities.\n\nA. The Administrator shall administer the Oklahoma Uniform\n\nSecurities Act of 2004.\n\nB. There are hereby created the Oklahoma Securities Commission\n\nand the Department of Securities. The Commission shall be the\n\npolicy making and governing authority of the Department, shall\n\nappoint the Administrator and shall be responsible for the\n\nenforcement of the Oklahoma Uniform Securities Act of 2004.\n\nC. 1. The Commission shall consist of five (5) members,\n\nincluding the State Banking Commissioner who shall serve as an ex\n\nofficio voting member. Four (4) members shall be appointed by the\n\nGovernor by and with the advice and consent of the Senate. One\n\nmember will be a member of the Oklahoma Bar Association appointed\n\nfrom a list of five nominees submitted by the Oklahoma Bar\n\nAssociation; one member shall be an active officer of a bank or\n\ntrust company operating in the State of Oklahoma appointed from a\n\nlist of five nominees submitted by the Oklahoma Bankers Association;\n\nand one member shall be a certified public accountant appointed from\n\na list of five nominees submitted by the Oklahoma Society of\n\nCertified Public Accountants; and one member shall be a resident of\n\nthis state actively engaged in the securities industry with the\n\nqualifications set forth in paragraph 3 of this subsection.\n\n2. Except for appointment of the member engaged in the\n\nsecurities industry as provided for in subsection C of this section,\n\nno person may be appointed to or by the Commission while such person\n\nis registered as a broker-dealer, agent, investment adviser, or\n\ninvestment adviser representative under the Oklahoma Uniform\n\nSecurities Act of 2004, or while he or she is an officer, director,\n\nor partner of any person so registered, or while he or she is an\n\nofficer, director, or partner of an issuer which has a registration\n\nstatement effective under the Oklahoma Uniform Securities Act of\n\n2004, or while he or she is occupying a similar status or performing\n\nsimilar functions.\n\n3. The member appointed as a representative of the securities\n\nindustry shall:\n\na. be currently registered as an agent, investment\n\nadviser, or investment adviser representative under\n\nthe requirements of this title,\n\nb. have at least ten (10) years of experience in the\n\nindustry immediately preceding appointment, and\n\nc. have not been subject to a regulatory action requiring\n\ndisclosure on the uniform applications for\n\nregistration for agents, investment advisers, or\n\ninvestment adviser representatives.\n\nThe member may be removed from office by the Governor when the\n\nmember has ceased to be qualified based on subparagraph a or c of\n\nthis paragraph.\n\n4. It is unlawful for any member of the Commission, the\n\nAdministrator, or any other officer or employee of the Department to\n\nuse for personal benefit any information which is filed with or\n\nobtained by the Administrator and which is not made public. No\n\nprovision of the Oklahoma Uniform Securities Act of 2004 authorizes\n\nany member of the Commission, the Administrator or any other officer\n\nor employee of the Department to disclose any such information\n\nexcept among themselves or when necessary or appropriate in a\n\nproceeding or investigation under the Oklahoma Uniform Securities\n\nAct of 2004 or in connection with a proceeding or investigation\n\nconducted by any state, federal or foreign law enforcement agency,\n\nsecurities agency or self-regulatory organization. No provision of\n\nthe Oklahoma Uniform Securities Act of 2004 either creates or\n\nderogates from any privilege which exists at common law or otherwise\n\nwhen documentary or other evidence is sought under a subpoena\n\ndirected to any member of the Commission, the Administrator or any\n\nother officer or employee of the Department.\n\n5. Except on proof of corruption, no Commissioner shall for his\n\nor her acts or failure to act be civilly liable to any investor,\n2004 either creates or\n\nderogates from any privilege which exists at common law or otherwise\n\nwhen documentary or other evidence is sought under a subpoena\n\ndirected to any member of the Commission, the Administrator or any\n\nother officer or employee of the Department.\n\n5. Except on proof of corruption, no Commissioner shall for his\n\nor her acts or failure to act be civilly liable to any investor,\n\napplicant for registration, or any other person.\n\nD. The Governor shall biennially appoint Commission members to\n\nserve for a staggered term of six (6) years. Upon the expiration of\n\ninitial terms, the term of each member shall be six (6) years from\n\nthe date of his or her appointment and qualification, and until his\n\nor her successor shall qualify. Vacancies shall be filled by the\n\nGovernor for the unexpired term. Members shall be eligible for\n\nreappointment.\n\nE. The Commission shall select a chair and is hereby authorized\n\nto adopt rules for conducting its proceedings. Any three members\n\nshall constitute a quorum for transacting Commission business. The\n\nCommission shall meet bimonthly on such date as it may designate and\n\nmay meet at such other times as it may deem necessary, or when\n\ncalled by the chair or by any two members. Complete minutes of each\n\nmeeting shall be kept and filed in the Department and shall be\n\navailable for public inspection during reasonable office hours. The\n\nCommission shall report annually to the Governor, to the Speaker of\n\nthe House of Representatives and to the President Pro Tempore of the\n\nSenate. The report shall contain the minutes of each meeting held\n\nduring the year, legislative recommendations, a summary of\n\nviolations of the Oklahoma Uniform Securities Act of 2004 and action\n\ntaken thereon, a list of securities registered under the Oklahoma\n\nUniform Securities Act of 2004 and such other data and information\n\nas may be deemed necessary or appropriate. The Commission is hereby\n\nauthorized to publish such report, and the Administrator may sell\n\ncopies of such report at such price as is reasonably sufficient to\n\ndefray the expenses of the Department in preparing, publishing, and\n\ndisseminating the same. Each member of the Commission shall have\n\nunrestricted access to all offices and records under the\n\njurisdiction of the Department. The Commission, or a majority\n\nthereof, may exercise any power or perform any act authorized for\n\nthe Administrator under the provisions of the Oklahoma Uniform\n\nSecurities Act of 2004.\n\nF. The Commission shall appoint a full-time Administrator, who\n\nshall serve at the pleasure of the Commission. The Administrator\n\nshall administer the Oklahoma Uniform Securities Act of 2004 under\n\nthe supervision of the Commission and in accordance with its\n\npolicies.\n\nG. The Administrator shall be a person of good moral character,\n\nat least thirty (30) years of age, a resident taxpayer of Oklahoma,\n\nand thoroughly familiar with corporate organization, investment\n\nbanking, investment trusts, the sale of securities, and the\n\nstatistical details of the manufacturing industries and commerce of\n\nthis state. In addition, the Administrator shall:\n\n1. Be a graduate of an accredited law school and a member of\n\nthe Oklahoma Bar Association, or shall have had ten (10) years’\n\nexperience as a certified public accountant; and\n\n2. Have at least three (3) years’ work experience involving\n\nsome aspect of the securities industry. The Commission may also\n\nrequire additional qualifications. The salary of the Administrator\n\nshall be fixed by the Commission.\n\nH. The Administrator, with the approval of the Commission, may\n\ndesignate a Deputy Securities Administrator, who shall possess the\n\nsame qualifications, including bond, required for the Administrator\n\nand who shall perform all the duties required to be performed by the\n\nAdministrator when the Administrator is absent or unable to act for\n\nany reason.\n. The Administrator, with the approval of the Commission, may\n\ndesignate a Deputy Securities Administrator, who shall possess the\n\nsame qualifications, including bond, required for the Administrator\n\nand who shall perform all the duties required to be performed by the\n\nAdministrator when the Administrator is absent or unable to act for\n\nany reason.\n\nI. Before assuming office, the Administrator shall give a bond\n\nin the sum of Fifty Thousand Dollars ($50,000.00) payable to the\n\nState of Oklahoma, to be approved by the Attorney General of the\n\nState of Oklahoma, conditioned that he or she will faithfully\n\nexecute the duties of the office. The Administrator may by rule or\n\norder require any employee of the Department to be bonded on the\n\nsame condition and in the same or such lesser amount as he or she\n\ndetermines. The expense of all such bonds shall be paid from funds\n\navailable to the Department.\n\nJ. 1. The internal administrative organization of the\n\nDepartment shall be determined by the Commission in such manner as\n\nto promote the efficient and effective enforcement of the Oklahoma\n\nUniform Securities Act of 2004. The Department shall include, but\n\nnot be limited to, divisions relating to:\n\na. registration of broker-dealers, agents, investment\n\nadvisers, and investment adviser representatives,\n\nb. registration of securities,\n\nc. investigation and enforcement, and\n\nd. investor education.\n\n2. Within the division of investor education, the Department\n\nmay provide the following services at the discretion of the\n\nAdministrator:\n\na. informing investors of all rights and remedies\n\navailable under this act,\n\nb. informing investors of the availability of private\n\ndispute resolution, including arbitration and\n\nmediation, as an alternative to other courses of\n\naction,\n\nc. acting as a liaison between investors and the other\n\ndivisions of the Department, and\n\nd. acting as a liaison between investors and issuers of\n\nsecurities, broker-dealers or investment advisers\n\nsubject to the jurisdiction of the Department under\n\nthis act.\n\nNothing in this subsection shall authorize any employee of the\n\nDepartment to represent the interests of, or to serve as counsel\n\nfor, investors in any proceeding or action to include an\n\nadministrative or civil proceeding brought by the Department or the\n\nSecurities and Exchange Commission, a proceeding brought by the\n\nFinancial Industry Regulatory Authority, Inc., or an arbitration or\n\nmediation proceeding. Further, no employee of the Department may\n\nadvise any person about the value of securities or as to the\n\nadvisability of investing in, purchasing or selling securities, or\n\nas to the value or merits of pursuing a particular course of action.\n\n3. Records of the division of investor education shall not be\n\nexempt from the provisions of the Open Records Act and Section 1-607\n\nof this title except as provided for in subparagraph 8 of paragraph\n\nB of Section 1-607 of this title.\n\nK. The Administrator shall prepare in writing a manual of\n\nnecessary employee positions for the Department, including job\n\nclassifications, personnel qualifications, duties, maximum and\n\nminimum salary schedules, and other personnel information, which\n\nshall be approved by the Commission. The Administrator may select,\n\nappoint, and employ such attorneys, accountants, auditors,\n\nexaminers, investigators, clerks, and other personnel as he or she\n\ndeems necessary for the proper administration of the Oklahoma\n\nUniform Securities Act of 2004, and may fix their compensation and\n\nthe salary of the Deputy Administrator. The Deputy Administrator\n\nand other employees of the Department shall serve at the pleasure of\n\nthe Administrator.\n\nL. The Commission and the Securities Department shall be\n\nassigned offices in Oklahoma City, Oklahoma, by the Office of\n\nManagement and Enterprise Services, and all records of the\nform Securities Act of 2004, and may fix their compensation and\n\nthe salary of the Deputy Administrator. The Deputy Administrator\n\nand other employees of the Department shall serve at the pleasure of\n\nthe Administrator.\n\nL. The Commission and the Securities Department shall be\n\nassigned offices in Oklahoma City, Oklahoma, by the Office of\n\nManagement and Enterprise Services, and all records of the\n\nCommission and Department shall be kept in those offices, unless and\n\nuntil transferred to the Records Management Division of the Oklahoma\n\nDepartment of Libraries.\n\nM. 1. Neither the Administrator nor any employee of the\n\nDepartment, during their respective terms of employment, shall serve\n\nas a director, officer, shareholder, member, partner, agent or\n\nemployee of any person who, during the period of such\n\nAdministrator’s or employee’s employment with the Department:\n\na. was licensed or applied for registration as a broker-\n\ndealer, agent, investment adviser or investment\n\nadviser representative under this act, or\n\nb. applied for or secured the registration of securities\n\nunder the Oklahoma Uniform Securities Act of 2004.\n\n2. Nothing in paragraph 1 of this subsection shall prohibit the\n\nholding, purchasing or selling of any securities by the\n\nAdministrator or any employee of the Department in accordance with\n\nregulations adopted by the Commission for the purpose of protecting\n\nthe public interest and avoiding conflicts of interest.\n\n3. Nothing contained in paragraph 1 of this subsection shall\n\nprohibit the holding, purchasing or selling of any securities of any\n\nissuer described in subparagraph b of paragraph 1 of this subsection\n\nof this section by the Administrator if either:\n\na. the Administrator together with his or her spouse, or\n\nminor children, owns less than one percent (1%) of any\n\nclass of outstanding securities of any such issuer so\n\nlong as such securities are not purchased in an\n\ninitial public offering, or\n\nb. such securities are held or purchased through a\n\nmanagement account or trust administered by a bank or\n\ntrust company authorized to do business in this state\n\nthat has sole investment discretion regarding the\n\nholding, purchasing or selling of such securities and\n\nthe Administrator or employee did not, directly or\n\nindirectly, advise, counsel or command the holding,\n\npurchasing or selling of any securities or furnish any\n\ninformation relating to any such securities to such\n\nbank or trust company and further, such account or\n\ntrust does not at any time have more than ten percent\n\n(10%) of its total assets invested in the securities\n\nof any one issuer or hold more than five percent (5%)\n\nof the outstanding securities of any class of\n\nsecurities of any one issuer.\n\nN. The Oklahoma Uniform Securities Act of 2004 does not create\n\nor diminish a privilege or exemption that exists at common law, by\n\nstatute or rule, or otherwise.\n\nO. The Administrator may develop and implement investor\n\neducation initiatives to inform the public about investing in\n\nsecurities, with particular emphasis on the prevention and detection\n\nof securities fraud. In developing and implementing these\n\ninitiatives, the Administrator may collaborate with public and\n\nnonprofit organizations with an interest in investor education. The\n\nAdministrator may accept a grant or donation from a person that is\n\nnot affiliated with the securities industry or from a nonprofit\n\norganization, regardless of whether the organization is affiliated\n\nwith the securities industry, to develop and implement investor\n\neducation initiatives. This subsection does not authorize the\n\nAdministrator to require participation or monetary contributions of\n\na registrant in an investor education program.","path":["OK Code","Title 71"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os71.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"8a3fddc7fd8b4feeb018c6190aecc23065750b9f1d71ecfbdf0a687b6d83a924","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-71-71-1-510","next":"us-ok/okla.-stat.-tit.-71-71-1-602"},"notice":"GroundRules: Original legal text. Not legal advice."}