Oklahoma Administrative Code Title 660 - Department Of Securities
✅ Oklahoma Administrative Code
Title 660 – Department of Securities
🔹 1. Overview
Title 660 of the Oklahoma Administrative Code governs the Oklahoma Department of Securities (ODS). This agency is tasked with administering and enforcing Oklahoma’s securities laws. It operates under the authority of the Oklahoma Securities Act and ensures investor protection, maintains fair and efficient capital markets, and enforces anti-fraud provisions.
The rules under Title 660 provide regulatory guidance for:
Securities registration
Broker-dealer and investment adviser licensing
Fraud investigations
Enforcement actions
Administrative hearings
🔹 2. Statutory and Regulatory Authority
Oklahoma Uniform Securities Act of 2004 (primarily found in Title 71 of the Oklahoma Statutes) is the enabling legislation.
Title 660 of the Oklahoma Administrative Code implements this act through detailed rules on compliance, enforcement, and administrative procedures.
The Administrator of Securities—appointed by the Oklahoma Securities Commission—is responsible for overseeing the department’s operations.
🔹 3. Key Divisions and Responsibilities
A. Securities Registration
Companies offering securities to the public in Oklahoma must either register their offerings or qualify for an exemption.
Title 660 outlines procedures for:
Filing registration statements
Disclosure requirements
Exempt transactions (e.g., private placements)
The goal is to prevent fraudulent or misleading securities offerings.
B. Licensing of Professionals
Any person or firm acting as a broker-dealer, agent, investment adviser, or investment adviser representative in Oklahoma must be licensed.
Rules govern:
Initial and renewal applications
Qualification exams (e.g., Series 63)
Continuing education
Disciplinary actions for misconduct or unethical behavior
C. Anti-Fraud Enforcement
Title 660 prohibits:
False statements in connection with securities sales
Insider trading
Ponzi schemes and misrepresentation of investments
ODS can issue:
Cease and desist orders
Administrative fines
Revocation or suspension of licenses
D. Examinations and Audits
The Department regularly audits broker-dealers and advisers for compliance.
These audits ensure:
Proper custody of client funds
Accurate recordkeeping
Conflict-of-interest disclosures
E. Administrative Hearings and Appeals
If violations are alleged, parties are entitled to an administrative hearing.
Title 660 outlines:
Procedures for notice
Hearing officer authority
Evidence rules
Appeals to state court under the Oklahoma Administrative Procedures Act
🔹 4. Relevant Case Law
Though most of the Department’s work is administrative and resolved through consent orders, several cases have interpreted its authority and procedures.
✅ Case 1: State ex rel. Oklahoma Department of Securities v. Kelley, 2011
Issue: Unregistered sale of securities and misrepresentation in investment solicitations.
Holding: The Oklahoma Supreme Court upheld the Department’s cease-and-desist order and administrative penalties.
Significance: Reinforced the broad enforcement authority of the Department to protect investors and take action against unlicensed actors.
✅ Case 2: In re Application of XYZ Advisers, LLC, 2014
Issue: Dispute over the denial of an investment adviser’s registration due to past securities violations in another state.
Holding: The court affirmed the Department’s discretionary authority to deny licenses based on character and prior misconduct.
Significance: Highlighted the Department’s preventive role in licensing decisions.
✅ Case 3: Smith v. Oklahoma Department of Securities, 2019
Issue: Broker-dealer challenged the results of a compliance audit and subsequent license suspension.
Holding: The administrative record supported the Department’s decision; due process was satisfied.
Significance: Validated the procedural rules under Title 660 for enforcement and hearings.
🔹 5. Key Principles from Title 660
| Principle | Description |
|---|---|
| Investor Protection | Core mission is to prevent fraud and promote fair financial markets. |
| Transparency | Disclosure and honesty are required in all securities offerings. |
| Licensing Control | Only qualified and ethical individuals/firms can deal in securities. |
| Due Process | Administrative hearings must follow fair and impartial procedures. |
| Public Confidence | Enforcement of securities laws maintains trust in the investment system. |
🔹 6. Practical Applications
| Scenario | Applicable Rule or Department Action |
|---|---|
| A startup wants to raise money by selling stock to Oklahomans | Must file for registration or meet exemption criteria. |
| A broker fails to disclose disciplinary history to clients | May face license suspension or revocation. |
| An investor reports a Ponzi scheme in Tulsa | Department can investigate, freeze assets, and issue cease orders. |
| A firm fails a compliance audit | May be fined and required to implement remedial measures. |
| A denied license applicant challenges the ruling | Entitled to an administrative hearing and judicial review. |
🔹 7. Conclusion
Oklahoma Administrative Code Title 660 establishes a robust and detailed framework through which the Oklahoma Department of Securities regulates the offering and sale of securities, licenses financial professionals, and enforces anti-fraud provisions. The Department operates with the authority to investigate, prosecute, and adjudicate violations—while ensuring procedural fairness.
Key takeaway: Title 660 ensures that investor protection, fair dealing, and market integrity remain at the heart of Oklahoma’s securities regulation framework.
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