Check Out An Investment
Whenever presented with an investment opportunity, the Utah Division of Securities encourages investors to thoroughly research the investment beforehand. Whether a security is publicly traded or privately offered, the information a prospective investor should receive is substantial.
For publicly traded securities, information is generally either reported to the Securities and Exchange Commission (e.g. earnings reports for companies that issue stock) or disclosed to investors in writing (e.g. mutual fund prospectuses).
For private securities offerings, similar information needs to be disclosed to investors, but often there is little oversight to ensure that investors have been afforded proper disclosure. Investors seeking to invest in such offerings need to ensure that the company has provided them with adequate disclosure.
Private Securities Offerings
Detailed information about a private offering can be found in a private placement memorandum (PPM), private offering memorandum (POM), or some similar type of disclosure document. These documents should be substantial in length (on average 30-60 pages) and cover all aspects of the business and the investment in the business. While not an exhaustive list, some of the following information should be included in the disclosure document: how the offering complies with securities laws, the business model; where returns will be earned; risks of the business and the investment; biographical information on the managers; any derogatory information for the company or its managers such as bankruptcies, criminal records, or civil lawsuits; and the terms and conditions of investing.
Tools and Resources
Division's Online Database
Investors can search the Division’s Online Database to determine if the company or its managers have made filings in Utah or whether the Division has taken any actions against them. Most securities offerings made in Utah require some type of filing with the Division.
SEC EDGAR Database
Investors can search SEC records to determine if the company has made any filings with the SEC. Most securities offerings require some type of filing.
Investment Advisor Public Disclosure
Investors can search for an Investment Adviser firm on this website and view the registration or reporting form ("Form ADV") that the adviser filed.
Finra Brocker Check
BrokerCheck is a free tool to research the background and experience of financial brokers, advisers and firms.
CFTC Smart Check
Investors can search any person or firm to trade in commodity futures, commodity pools, options, forex, or other derivatives, and confirm that the entity is properly registered with the CFTC.
Utah White Collar Crime Registry
The Utah White Collar Crime Offender Registry provides the public with a searchable database of felons who have been convicted of white-collar crime in the past 10 years.
Court Records
Investors can research county, state, and federal court records to determine if the company or managers have any records of concern.
Utah Division of Corporations
Investors can search Utah records to determine if the corporation is properly established in Utah and whether the principals have other businesses.
Utah Department of Financial Institutions
For investments involving money lending, investors can search Utah records to determine if the company needs to be registered with the Dept. of Financial Institutions.
Utah Division of Real Estate
For investments that involve real estate, investors can search Utah records to determine if the companies and individuals involved are properly engaged in the real estate business.
