Section 710IAC4-7-1. Safe harbor rule

   An affiliated person of an issuer will not be deemed to be transacting business as a broker-dealer within the meaning of IC 23-19-1-2(3) if the person effects sales of the issuer's securities in an offering and the person:

(1) has not sold securities of the same or another issuer in the twelve (12) months immediately preceding the first sale in the offering; or

(2) has sold only securities of the same or other affiliated issuers, and the issuer and each affiliated issuer is an investment company registered under the Investment Company Act of 1940, provided that the associated person restricts his or her participation to any one (1) or more of the following activities:

(A) preparing any written communication or delivering the communication through the mails or other means that does not involve oral solicitation by the associated person of a potential purchaser if the content of the communication is approved by:

(i) a partner;

(ii) an officer; or

(iii) a director;

of the issuer;

(B) responding to inquiries of a potential purchaser in a communication initiated by the potential purchaser if the content of the responses are limited to information contained in a registration statement or other offering document; or

(C) performing ministerial and clerical work involved in effecting any transaction.

(Securities Division; 710 IAC 4-7-1; filed Jun 28, 2010, 2:36 p.m.: 20100728-IR-710100044FRA; readopted filed May 12, 2016, 1:47 p.m.: 20160608-IR-710160136RFA)