Idaho Department of Finance
Through the authority of Idaho’s Uniform Securities Act (2004) and the
Idaho Commodity Code, the Securities Bureau of the Department of Finance
regulates the sale of investment securities (e.g., stocks and bonds) and those individuals
and entities that offer investment opportunities to the public.
Idaho’s Uniform Securities Act (2004) seeks to preserve and promote legitimate
securities markets by assisting companies in their attempts to raise capital and
prevent investment fraud. While the Act is designed to protect investors from fraud,
it does not protect investors from the possibility of investment loss resulting
from securities price movements, market changes or business failures. The Act requires
that persons who solicit investments provide complete disclosure of all the important
aspects of the investment being promoted. With this information, investors are empowered
to make reasoned investment decisions.
The Idaho Commodity Code is designed to reduce fraud by outlawing certain commodity
investment contracts where the investor never receives delivery of the commodity.
The law does not create a separate regulatory system. Rather, the statute provides
an enforcement tool that relates to types of investment fraud not covered by Idaho’s
Uniform Securities Act (2004).
In addition, the Securities Bureau of the Department of Finance has limited duties
under Idaho's corporate takeover Acts. In 1988, the Idaho Legislature adopted the
Control Share Acquisition Act and the Business Combination Act
to govern certain corporate mergers in Idaho. The first law gives shareholders more
authority to decide the terms of a takeover and the second allows a corporation
to limit the effects of a takeover.