Commerce, Securities

Rule R164-1

Fraudulent Practices

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 36459
Filed: 07/11/2012 08:52:22 AM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Under Subsection 61-1-1(3) of the Utah Uniform Securities Act, it is unlawful for any person to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. Subsection 61-1-24(1)(a) provides authority for the Division to make rules necessary to carry out the provisions of the Act. Pursuant to that authority, Rule R164-1 identifies specific acts and practices that are deemed fraudulent under Subsection 61-1-1(3).

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

No written comments have been received.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule assists the public and courts in interpreting "act, practice, or course of business which operates or would operate as a fraud or deceit upon any person" and should be continued. The list is not all-inclusive, but provides examples of conduct deemed to be fraudulent in nature.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

• Charles Lyons at the above address, by phone at 801-530-6940, by FAX at 801-530-6980, or by Internet E-mail at clyons@utah.gov
• Keith Woodwell at the above address, by phone at 801-530-6606, by FAX at 801-530-6980, or by Internet E-mail at kwoodwell@utah.gov

Authorized by:

Keith Woodwell, Director

Effective:

07/11/2012