Uniform Securities Act – Definition

Cite this article as:"Uniform Securities Act – Definition," in The Business Professor, updated May 8, 2019, last accessed December 4, 2020, https://thebusinessprofessor.com/lesson/uniform-securities-act-definition/.


Uniform Securities Act Definition

The Uniform Securities Act refer to a model law through which state securities laws are created. This model law is aimed at helping the government regulate security transaction at the state level. The Uniform Securities Act is a model law that guide states when drafting their own laws. This model enable states to establish laws that tackle securities fraud in states that adopt it. The Act parleys with the provisions of the Securities and Exchange Commission (SEC) in enforcing securities laws and regulating transactions.

A Little More on What is the Uniform Securities Act

At first, the Uniform Securities Act started out as the Uniform Sales of Securities Act of 1930 before it was later revised and created to become the Uniform Securities Act of 1956. The act was created by the National Conference of Commissioners on Uniform State Laws (NCCUSL).

The creation of the Uniform Securities Act became expedient because not all investments or securities are registered at the federal level. Also, SEC cannot regulate all investments or securities, there is a need to have assisting laws or act. Some are registered under state government and regulations must exist for these securities at the state level. The Uniform Securities Act was enacted to enforce securities regulations and also protect investors.

Before the Uniform Securities Act came into force, there were similar acts which were amended to give birth to the act. This act guides states when drafting their securities laws, although, not all states adopted the act.

Through the application of the act, a more structured and consistent enforcement and regulation of securities deals is achieved across states that adopts it. The application of the Uniform Securities Act entails that states understand their roles and authority as contained in act. For states that adopt the Uniform Securities Act, it must be applied in terms of registration of IPOs, broker-dealers and other securities agents. The act must also be applied to prevent securities fraud and other unethical practices.

References for Uniform Securities Act

Academic Research on Uniform Securities Act

Some Comments on the Uniform Securities Act, Hill, A. (1960). Nw. UL Rev., 55, 661.

The Development of a Revised Uniform Securities Act, Hensley, D. C. (1985). The Business Lawyer, 721-743.

Should Utah Adopt the New Uniform Securities Act, Bennett, W. R. (1956). Utah L. Rev., 5, 471.

California Measures the Uniform Securities Act Against Its Corporate Securities Law, Edwards, R. H. (1959). Bus. Law, 15, 814.

Conflict of Laws Provisions of the Uniform Securities Act, Or When Does a Transaction Take Place in This State–Part I, Long, J. C. (1978). Okla. L. Rev., 31, 781.

Thoughts on Borrowing Federal Securities Jurisprudence Under the Uniform Securities Act, McWilliams Jr, M. C. (1986). SCL Rev., 38, 243.

A Guide to the Investigative and Enforcement Provisions of the Uniform Securities Act, Long, J. C. (1980). Wash. & Lee L. Rev., 37, 739.

The Uniform Securities Act–A Step Forward in State Regulation, Tompkins, R. W. (1974). W. Va. L. Rev., 77, 15.

Missouri’s New Uniform Securities Act and Securities Regulations, Logan, J. C. (1969). U. Mo. Kan. City L. Rev., 37, 1.

The Revised Uniform Securities Act-The Debate Continues, Hensley, D. C. (1987). Bus. Law., 43, 765.

Proposed Texas Uniform Securities Act, The, Bromberg, A. R. (1968). Tex. BJ, 31, 1030.

Current Status of the Uniform Securities Act, Loss, L. (1956). The Business Lawyer, 26-29.

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