KY

Kentucky Blue Sky Laws

Kentucky regulates securities under the Kentucky Securities Act, enforced by the Division of Securities within the Department of Financial Institutions. Kentucky requires registration or exemption for all securities offered or sold within the state.

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Kentucky Securities Regulatory Overview

Regulatory Body
Kentucky Department of Financial Institutions, Division of Securities
Primary Statute
Kentucky Securities Act (KRS Chapter 292)

Registration Requirements

Kentucky allows registration by coordination, qualification, or notice filing for federal covered securities. Reg D Rule 506 offerings require Form D notice filing with the Division of Securities. Filing fee is $250, due within 15 days of first sale.

Key Provisions of Kentucky Securities Law

Understanding the core regulatory framework in Kentucky:

1

Securities must be registered by coordination, qualification, or notification before offer or sale

2

Anti-fraud provisions apply to all securities transactions in Kentucky

3

The Division of Securities has investigative and enforcement authority

4

Broker-dealers and investment advisers must register before doing business in Kentucky

Available Exemptions in Kentucky

Kentucky 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
  • Limited offering exemption for sales to no more than 15 persons in 12 months
  • Government securities

Penalties for Non-Compliance in Kentucky

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

How Kentucky Blue Sky Laws Affect Your Transaction

Kentucky's manufacturing and healthcare sectors generate M&A activity. Transactions involving Kentucky-resident shareholders require blue sky compliance when stock is part of deal consideration. Acquisition Stars handles Kentucky compliance as part of multi-state transactions.

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

What is Kentucky's Reg D filing fee?
Kentucky charges $250 for Reg D Rule 506 notice filings with the Division of Securities.
Who regulates securities in Kentucky?
The Division of Securities within the Department of Financial Institutions enforces Kentucky's securities laws.
Does Kentucky conduct merit review?
Kentucky may apply merit review to registration by qualification applications. Reg D Rule 506 offerings require only notice filing.

Need Securities Compliance Counsel in Kentucky?

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

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