The Illinois Securities Department is responsible for the regulation of the securities industry in Illinois. The duties of the Department are as follows:
- Register securities offerings and the persons who sell them.
- Regulation of investment advisors, business brokers, loan brokers, and business opportunities.
The Department is also responsible for protecting the investing citizens in Illinois by ensuring compliance with the Law and investigating any complaints of fraud or improper practices.
- Most types of consumer investments fall within the regulatory jurisdiction of the Illinois Securities Department.
- All securities offered or sold in the state must be registered with the Department prior to their offer or sale, unless exempt by law.
- The Department's goal is to effectively accomplish its registration responsibilities in a way that will encourage capital formation and promote economic growth in Illinois.
- The Department also ensures industry compliance with appropriate rules and standards of conduct through its Enforcement Division.
- The Department strives to protect Illinois investors and maintain public confidence in the capital markets.
The Illinois Securities Department is an administrative agency, which is designated as a criminal justice agency for informational purposes only. While the Department is not usually able to see that money is returned to the investor, administrative action taken by the Illinois Securities Department can be used to assist the investor if a civil action is filed. In limited situations the Department may be able to require a company to offer a rescission to the investors involved as part of a settlement of a complaint with the Department.
Organizational Structure of the Illinois Securities Department
The Illinois Securities Department consists of three operational divisions.
The Registration and Licensing Divisions
The Registration Section is responsible for:
- Registration of securities offerings and notice filings.
- The "Small Business Information Center" which has been organized to provide assistance to smaller companies who want to make offers of stocks.
- Review small business filings.
The Licensing Section reviews applications from the various individuals and firms registered (or "licensed") with the Department.
The Audit and Compliance Division is responsible for conducting and coordinating all field examination programs and performs:
- Compliance Audits are conducted by Department personnel in order to ensure Securities Broker-Dealers, Investment Advisors and their salespersons or representatives are operating in compliance with the Illinois Securities Law.
- For cause audits are performed in conjunction with ongoing enforcement investigations which may involve unregistered securities, unregistered sales activity, unregistered investment advisory or financial planning activity, customer complaints or fraudulent activity. These examinations involve review of financial records as well as other documents which are part of an ongoing investigation.
The Enforcement/Investigations Division is responsible for the investigation of complaints by investors within the State of Illinois, or investors from out of state who have done business with an individual or business within the State of Illinois.
- If an investigation reveals that violations did occur, the Department is empowered to take administrative action which may include temporary or permanent prohibition, suspension or revocation of registration and a fine. The intent of the Department is to halt companies which may be violating the Illinois Securities Law from doing business in the State of Illinois.
- When warranted, the Department refers cases for civil or criminal prosecution. These referrals are made to either the local State's Attorney, Office of the Illinois Attorney General and in some cases where jurisdiction extends beyond state boundaries the case will be referred to the United States Attorney's Office. Because securities are technical in nature, Department staff may often be assigned to assist in criminal prosecution of a case.
Effective investor protection also requires investor education. In order to provide consumer assistance and information, the Illinois Securities Department has established within the Administrative office of the Department a special Investor Education Section. The Department emphasizes the importance of investor education through outreach programs that assist investors in understanding the capital markets and the securities industry.
The Law(s)
The Illinois Securities Department is responsible for administering and enforcing the provisions of the Illinois Securities Law of 1953
The Illinois Securities Department is responsible for administering and enforcing the provisions of the
Business Opportunities Sales Law of 1995 PDF
The Illinois Securities Department is responsible for administering and enforcing the provisions of for administering and enforcing the provisions of the
Illinois Loan Brokers Act of 1995 PDF
The Rules
Staff Directory
DISCLAIMER
The Secretary of State, Illinois Securities Department or their information providers shall not be liable regardless of the cause or duration, for any errors, inaccuracies, omissions or untimeliness of the information, or for any delay or interruption in the transmission thereof to the user, or for any claims or losses arising therefrom.
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