MI

Michigan Blue Sky Laws

Michigan regulates securities under the Michigan Uniform Securities Act (2008), enforced by the Corporations, Securities, and Commercial Licensing Bureau within the Department of Licensing and Regulatory Affairs (LARA). Michigan modernized its securities laws in 2009 by adopting the Uniform Securities Act.

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Michigan Securities Regulatory Overview

Regulatory Body
Michigan LARA, Corporations, Securities, and Commercial Licensing Bureau
Primary Statute
Michigan Uniform Securities Act (2008) (MCL 451.2101 et seq.)

Registration Requirements

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

Key Provisions of Michigan Securities Law

Understanding the core regulatory framework in Michigan:

1

Securities must be registered before offer or sale unless exempt under the Michigan Uniform Securities Act

2

Michigan adopted the 2002 Uniform Securities Act effective October 2009

3

Anti-fraud provisions apply to all securities transactions in Michigan

4

The Bureau has authority to investigate, subpoena records, and bring administrative and civil actions

5

Michigan requires registration of broker-dealers, agents, and investment advisers

Available Exemptions in Michigan

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

Penalties for Non-Compliance in Michigan

Michigan imposes civil penalties up to $10,000 per violation, criminal penalties including felony charges for willful violations, investor rescission rights, and administrative sanctions. The Bureau can issue cease-and-desist orders and revoke registrations.

How Michigan Blue Sky Laws Affect Your Transaction

Michigan's automotive, manufacturing, and technology sectors generate substantial M&A activity. Transactions involving Michigan-based shareholders require compliance when stock is part of the consideration. Acquisition Stars, based in Novi, Michigan, has particular familiarity with Michigan securities compliance requirements.

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

What is Michigan's Reg D filing fee?
Michigan charges $100 for Reg D Rule 506 notice filings with LARA's Corporations, Securities, and Commercial Licensing Bureau.
When did Michigan update its securities laws?
Michigan adopted the Uniform Securities Act (2008), effective October 2009, replacing its prior securities framework.
Who enforces Michigan blue sky laws?
The Corporations, Securities, and Commercial Licensing Bureau within the Department of Licensing and Regulatory Affairs (LARA) enforces Michigan's securities laws.

Need Securities Compliance Counsel in Michigan?

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

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