Exemptions to the Securities Act of 1933
If a security is deemed exempt from the Securities Act of 1933, it means the issuer does not need to register the security on the federal level. However, the issuer may be required to register the security at the state level, depending on each state’s laws and procedures.
Securities exempt from registration under the Securities Act of 1933 include:
- • Federal government securities (U.S. Treasury bonds, U.S. savings bonds, U.S. agency bonds, such as mortgage-backed securities and collateralized mortgage obligations.)
- • Municipal securities (issued by city, county, and state governments)
- • Bank securities such as certificates of deposit (CDs)
- • Commercial paper (fixed-income securities that mature less than 270 days from issuance)
- • Securities issued by charitable and nonprofit organizations
Additionally, certain offerings and transactions (not just the security, as above, but how the security is offered or sold) are exempt from the Securities Act of 1933. These include:
- • Regulation A offerings, also known as circular offerings. An issuer can issue and sell up to $50,000,000 worth of securities with a reduced registration