Occupational Board Reform Act

General Information

Committee of Jurisdiction:Banking, Commerce and Insurance
Occupation Regulated:Issuer-Dealer Agent
Occupational Board:N/A
Contact:Claire McHenry, Deputy Director
Purpose:Under the Securities Act of Nebraska it shall be unlawful for an issuer to employ an agent unless the issuer is registered as an issuer-dealer and unless the agent is registered. 8-1103.
Regulated Professionals:As of end of FY 2021-2022, 8 registered issuer-dealer agents
Year Created:1913
Year Active:1913
Sunset Date:N/A

Authorization

Statutory Authorization:Securities Act of Nebraska, 8-1101-1123.
Parent Agency:Nebraska Department of Banking and Finance

Membership

Number of Members:
Who Appoints:
Legislative Approval:
Qualifications of Members:
Per Diem:
Expense Reimbursement:
Term Length:
Terms Rotate or Expire at Once:

Meetings

Required FY 2022-2021:0
Held FY 2022-2021:0
Required FY 2021-2020:0
Held FY 2021-2020:0
Required FY 2020-2019:0
Held FY 2020-2019:0
Required FY 2019-2018:0
Held FY 2019-2018:0
Required FY 2018-2017:0
Held FY 2018-2017:0

Operations

Support Staff:2 *Whole compensation figures. Does not consider percentage allocation of time.
Shared or Separate:Shared
FY 2022-2021 Budget:102875
FY 2021-2020 Budget:94767
FY 2020-2019 Budget:82915
FY 2019-2018 Budget:83344
FY 2018-2017 Budget:120872
Other Funding Sources:No Other Funding Sources
Spending Authority:Neb. Rev. Stat. § 8-1120 (Director may employ as may be necessary for administration)

Other

Government Certificates Issued:56
Issued Certificate Descriptions:“Issued” in this context means registration by the Department
Government Certificates Revoked:0
Revoked Certificate Descriptions: "Revoked" refers to situations where the Department has taken away a previously issued license.
Government Certificates Denied:0
Denied Certificate Descriptions:"Denied" refers to initial license applications that were denied by the Department
Government Certificates Penalties Against:0
Penalty Certificate Descriptions:”Penalties Against” refers to situations when an existing license holder had a license suspended and/or a fine levied against them.
Explanation of Effectiveness:https://nebraskalegislature.gov/pdf/SurveyDocs/explanation1668541659.pdf
Potential Harm* Provide an explanation for why you believe or do not believe that the occupational regulations overseen by your board have been effective. The securities industry is a highly regulated industry. Persons who receive compensation for the sales of securities sold directly by the issuer, similar to broker-dealer agents, are in a position of trust and have access to sensitive personal financial information about Nebraska consumers. The Department and the State have a strong interest in monitoring the industry and removing bad actors. As can be seen from the numbers provided, the limited number of license denials demonstrates a low barrier of entry into the profession. Further, the numbers of licenses revoked or given penalties is very low in comparison to the number of registrants. While most registrants are of high integrity, the existing regulatory frame work gives the Department the necessary authority to remove bad actors from taking advantage of the sensitive information and position of power they have access to. Although not every state has the specific issuer-dealer and issuer-dealer agent registration requirement, many states have an agent of issuer registration requirement for those persons receiving sales-based compensation for the sale of securities. Additionally, the Department would share such registration information with other state or federal securities agencies. What is the potential harm if this occupation is no longer licensed, certified, or regulated? Primarily, Nebraska would lose its authority to monitor the Nebraska securities industry and remove bad actors. As noted above, issuer-dealer agents have access to sensitive personal financial information of Nebraska consumers and, as such, must meet certain minimum requirements related to education, knowledge, and integrity. The ability to remove bad actors from the marketplace is an important protection for Nebraska consumers. Most state securities regulators have securities laws and regulations based on the Uniform Securities Act of 1956 or 2002, and model rules promulgated by the North American Securities Administrators Association (NASAA), of which Nebraska is a member. Disciplinary actions and violations of one jurisdiction’s securities laws and rules may be the basis for denial of a registrant in another jurisdiction. Although not every state has the specific issuer-dealer and issuer-dealer agent registration requirement, many states have an agent of issuer registration requirement for those persons receiving sales-based compensation for the sale of securities. Additionally, the Department would share such registration information with other state or federal securities agencies. * Provide a comparison of whether and how other states regulate the occupation. See above.
Regulation Comparison:https://nebraskalegislature.gov/pdf/SurveyDocs/comparison1668541659.pdf
Subject to Regulations of Act(LB407):No
Survey Submitted: November 15, 2022 01:47 PM