FL

Florida Blue Sky Laws

Florida regulates securities under the Florida Securities and Investor Protection Act, enforced by the Florida Office of Financial Regulation (OFR). As one of the most active states for capital raises and real estate syndications, Florida's blue sky law compliance is critical for issuers targeting the state's large investor population.

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Florida Securities Regulatory Overview

Regulatory Body
Florida Office of Financial Regulation (OFR)
Primary Statute
Florida Securities and Investor Protection Act (Fla. Stat. 517.011 et seq.)

Registration Requirements

Florida allows registration by notification, coordination, or qualification. Reg D Rule 506 offerings require Form D notice filing with the OFR. Filing fee is $200 plus a $50 technology fee ($250 total). Notice must be filed within 15 days of first sale to a Florida investor.

Key Provisions of Florida Securities Law

Understanding the core regulatory framework in Florida:

1

Securities must be registered with the OFR before offer or sale unless exempt under the Act

2

Florida applies a disclosure-based review system rather than merit review for most offerings

3

Anti-fraud provisions under Section 517.301 are broadly construed to protect investors

4

The OFR has authority to investigate, subpoena, and bring administrative and civil enforcement actions

5

Florida requires registration of dealers, associated persons, and investment advisers

Available Exemptions in Florida

Florida provides the following exemptions from full securities registration:

  • Federal covered securities (Reg D Rule 506, Reg A+ Tier 2, exchange-listed) with notice filing
  • Section 517.061(11): limited offering exemption for sales to no more than 35 persons in Florida
  • Sales to institutional investors (banks, insurance companies, pension funds)
  • Isolated nonissuer transactions
  • Securities issued by government entities and public utilities

Penalties for Non-Compliance in Florida

Florida imposes civil penalties up to $10,000 per violation, criminal penalties including third-degree felony charges (fines up to $5,000 and imprisonment up to 5 years) for willful violations, investor rescission rights, treble damages for certain fraud claims, and administrative sanctions. The OFR can issue cease-and-desist orders and revoke registrations.

How Florida Blue Sky Laws Affect Your Transaction

Florida's large population of high-net-worth individuals and retirees makes it a common state for investor exposure in M&A transactions. Real estate syndications, PIPE offerings, and stock-for-stock mergers involving Florida residents all require blue sky compliance. Acquisition Stars handles Florida OFR filings for transactions involving Florida-based shareholders and investors.

Need Securities Counsel for a Florida Transaction?

Acquisition Stars handles blue sky compliance, M&A transactions, and securities offerings nationwide. Managing partner Alex Lubyansky provides direct counsel on every engagement.

Frequently Asked Questions

Common questions about Florida blue sky laws and securities compliance

Does Florida use merit review?
No. Florida uses a disclosure-based review system rather than merit review for securities registration. The OFR reviews for adequate disclosure but does not evaluate the fairness of the offering terms.
What is the Reg D filing fee in Florida?
Florida charges $200 plus a $50 technology fee ($250 total) for Reg D Rule 506 notice filings with the Office of Financial Regulation.
What is Section 517.061(11)?
Section 517.061(11) is Florida's limited offering exemption allowing sales to no more than 35 persons in Florida in a 12-month period. It requires specific disclosure and suitability standards.
How does the OFR enforce blue sky violations?
The OFR can issue cease-and-desist orders, impose administrative fines up to $10,000 per violation, revoke registrations, and refer cases for criminal prosecution. Willful violations are third-degree felonies.

Need Securities Compliance Counsel in Florida?

Our managing partner provides selective securities and M&A counsel for transactions involving Florida blue sky law compliance. Submit your transaction details for a preliminary assessment.

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