Blue Sky Manual Exemptions

​A listing in the Mergent Manuals and News Reports will cost- effectively facilitate U.S. trading of your company's securities by providing an exemption in those states which have the "manual exemption" provision in their statutes.

What are the Blue Sky Laws?

Blue sky laws are state or jurisdictional laws in the U.S. that regulate the offering and sale of securities in order to protect the public investors from fraud. These laws vary among states. States may require securities to be registered at the state level or to have an available exemption from registration. Without compliance with, or exemption from, blue sky laws, the statutes can prevent brokers from soliciting interest in your company from their clients.

Make Mergent your choice for Blue Sky regulatory compliance and give your company the global recognition it deserves.

Recognized and trusted by 39 states that act in accordance with BlueSky regulatory provincial securities laws for secondary trading of a company's common stock or ADR's.

Significantly lower initial and annual renewal costs for Blue Sky manual exemption service.

​Targets U.S. retail investors and potential shareholders with increased awareness of your company’s stock

Provides a third party reference profile from a highly credible independent information source

MERGENT'S INVESTOR RELATIONS SERVICES

Enables the proactive positioning and solicitation of your company's stock by tens of thousands of U.S. brokers and financial advisors

Continuous coverage of key company financial and relevant business developments available in print and online

MERGENT'S INVESTOR RELATIONS SERVICES
  • Increasing U.S. retail investor awareness, positioning and potential shareholders of their stock
  • Providing a third party reference profile from a highly credible independent information source
  • Enabling the proactive positioning and solicitation of their stock by tens of thousands of U.S. brokers and financial advisors
  • Continuous coverage of key company financial and relevant business developments available in print and online

Mergent offers a wide range of customized programs that provide valuable opportunities to increase the visibility of your company. Mergent's extensive history and worldwide distribution media outlets ensure maximum communication between your company and a vast targeted audience of investors and decision-makers.

Many companies choose to significantly reduce the expense of individual state licensing fees (for secondary trading compliance of the company's securities) by seeking to obtain a listing in a "recognized securities manual". Among the oldest and most reputable "recognized securities manuals" are Mergent™ Manuals and News Reports, first published in 1918.

Formerly known as Moody's® Manuals and News Reports, the publications were rebranded as Mergent Manuals and News Reports when Mergent, Inc acquired Moody's™ Financial Information Services division in 1998.

Frequently Asked Questions

This document and the information contained herein are provided "as is" for information pruposes only, and are not intended to substitute for competent professional advice.

Obtaining an exemption ​so as to be in compliance with the individual state securities laws ("Blue Sky laws") is a complex process - one that is unique to each business. The information provided here should serve solely as a general guide to assist in understanding that process. No action should be initated without obtaining professional advice from a qualified legal, accounting and financial advisors.

What are state blue sky laws?
Blue sky laws are state or jurisdictional laws in the U.S. that regulate the offering and sale of securities in order to protect the public investors from fraud. These laws vary among states. States may require securities to be registered at the state level or to have an available exemption from registration. Without compliance with, or exemption from, blue sky laws, the statutes can prevent brokers from soliciting interest in your company from their clients.
What is "manual exemption"?
The majority of the U.S. states/jurisdictions have written into their statutes a provision for a "manual exemption" that may exempt a company from state registration if it is published in a "Recognized Securities Manual" such as Mergent's Manuals.
Why do I need manual exemption?
Without state/jurisdiction exemption or registration, brokers cannot recommend/solicit a security to their clients, hindering your company's positioning and marketability to the U.S. retail market. Manual exemption is available if the issuer of the securities publishes certain continuous disclosure information on an ongoing basis in a recognized manual.
Does quotation on OTC Markets platforms negate the need for manual exemption?
No. Quotation on any electronic bulletin board allows brokers to trade securities listed but does not allow brokers to recommend/solicit the retail market for interest in these securities. Furthermore, unsophisticated investors are deterred from trading securities quoted on these facilities.
What about the other states/jurisdictions that do not recognize Mergent Manuals?
There are a few remaining states that do not recognize Mergent Manuals as a self executing manual exemption. Assistance with exemption for the remaining states is available from other service providers.
Can a company obtain state exemption on its own?
While there are other ways to obtain state exemptions or registration, the cost and time to undertake this process may be very costly.
Can I lose my blue sky/manual exemption
There are ways to become ineligible for manual exemption and ways to end your exemption. Reasons for ineligibility for manual exemption include failing to meet the blue sky/manual exemption criteria which can vary state to state, or failure to report information that would keep your profile in Mergent's Manual.