Blue Sky Monitoring Service
Blue sky laws are U.S. state laws that regulate the offer and sale of securities to protect investors from fraud. In order for broker-dealers to be able to recommend, solicit or even discuss a security with investors in any of the 50 states or 4 U.S. territories, the security must comply with the blue sky laws of the state the investor resides in. Securities that are not listed on NASDAQ and NYSE do not have automatic “Blue Sky” exemption across the 50 states and additional U.S. territories.
Best Practices to Gain Compliance
- Conduct an audit to understand your companys Blue Sky Compliance in each state
- Determine what additional exemptions are available
- For remaining states, assess where your company would like to gain compliance
- Work with your securities attorney or use OTC Markets Groups Blue Sky Filing Service to help you register in individual states
Blue Sky Recognition for our Premium Markets
OTC Markets is working with state regulators and NASAA to achieve blue sky recognition for the OTCQX Best Market and the OTCQB Venture Market in individual states through formal rule changes, no-action letters, administrative orders and trading exemptions.
As of October 2017, 27 states recognize the OTCQX market and 24 states recognize the OTCQB market.
|Alaska||Kansas (OTCQX only)||Rhode Island|
|Georgia||New Jersey||Vermont (OTCQX only)|
|Idaho (OTCQX only)||New Mexico||Washington|
Blue Sky Solutions
Blue Sky Monitoring Service offers companies a customized daily audit of their Blue Sky compliance status in each U.S state or territory to help companies reach a larger pool of U.S. investors. Companies use this service to streamline their compliance process, receive guidance and information on available exemptions and registering in non-compliant states, and be informed with daily updates on which state brokers can or cannot discuss the security with investors.
- Compliance information is updated on a daily basis and is the same information distributed to broker-dealers
- Daily audit may be easily accessed through otciq.com, a market intelligence and investor relations portal
- Guidance on ways to maximize compliance through available exemptions
Blue Sky Filing Service helps companies to file registration documents for secondary trading where an exemption is unavailable.
- Guidance: Consultation with states on the process of registering a security
- Initial Filing: Completes forms and files required documents for the company
- Renewals: Reminders of upcoming filing dates and completes the process for renewal of registration
- Reach More Investors – Blue Sky compliance is mandatory for the 280,000+ U.S. registered investment advisors to advise, discuss, or recommend a company’s stock to their investor clients
- Eliminate Research Barrier – Many broker-dealers will not prepare research reports on companies that do not have widespread Blue Sky compliance
- Streamline Compliance – Ongoing monitoring is provided through a complete analysis of a company’s state exemptions, reports on changes in state securities laws that affect Blue Sky, and advance reminders on state filing renewal deadlines
- OTCQX Companies: Blue Sky Monitoring Service is included
- OTCQB and Pink Companies: $3,000 per year
How to Subscribe
You may contact Corporate Services at firstname.lastname@example.org or 212.896.4420 if you have any questions.