HI

Hawaii Blue Sky Laws

Hawaii regulates securities under the Hawaii Uniform Securities Act, administered by the Securities Compliance Branch of the Department of Commerce and Consumer Affairs. Hawaii adopted the Uniform Securities Act and requires registration or exemption for all securities offered or sold in the state.

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Hawaii Securities Regulatory Overview

Regulatory Body
Hawaii Department of Commerce and Consumer Affairs, Securities Compliance Branch
Primary Statute
Hawaii Uniform Securities Act (HRS Chapter 485A)

Registration Requirements

Hawaii requires registration by coordination, qualification, or notice filing for federal covered securities. Reg D Rule 506 offerings require Form D notice filing. Filing fee is $100, due within 15 days of first sale to a Hawaii investor.

Key Provisions of Hawaii Securities Law

Understanding the core regulatory framework in Hawaii:

1

Securities must be registered before offer or sale unless exempt under HRS Chapter 485A

2

Hawaii adopted the Uniform Securities Act (2002) with state modifications

3

Anti-fraud provisions prohibit material misrepresentation and deceptive practices

4

The Commissioner has authority to investigate, issue subpoenas, and bring enforcement actions

Available Exemptions in Hawaii

Hawaii provides the following exemptions from full securities registration:

  • Federal covered securities (Reg D Rule 506, Reg A+ Tier 2, exchange-listed) with notice filing
  • Isolated nonissuer transactions
  • Sales to institutional investors (banks, insurance companies, pension funds)
  • Offers to not more than 10 persons in Hawaii during any 12-month period
  • Government securities

Penalties for Non-Compliance in Hawaii

Hawaii imposes civil penalties up to $10,000 per violation, criminal penalties including fines up to $5,000 and imprisonment up to 5 years, investor rescission rights, and administrative sanctions including cease-and-desist orders.

How Hawaii Blue Sky Laws Affect Your Transaction

M&A transactions involving Hawaii-based companies or shareholders require blue sky compliance when stock consideration is involved. Hawaii's geographic isolation and unique economy require specific attention to investor residency. Acquisition Stars ensures proper notice filing for deals with Hawaii exposure.

Need Securities Counsel for a Hawaii 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 Hawaii blue sky laws and securities compliance

What is Hawaii's Reg D filing fee?
Hawaii charges $100 for Reg D Rule 506 notice filings, due within 15 days of first sale.
Who regulates securities in Hawaii?
The Securities Compliance Branch of the Department of Commerce and Consumer Affairs enforces Hawaii's securities laws.
Does Hawaii conduct merit review?
Hawaii does not conduct merit review for Reg D Rule 506 offerings. Only notice filing is required for federal covered securities.

Need Securities Compliance Counsel in Hawaii?

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

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