Kansas Securities Regulation

The Kansas Securities Act was passed in 1911, making Kansas the first of the United States to regulate the securities industry. Lawmakers stated that the law was an attempt to prevent the sale of securities which had nothing behind them other than the "blue sky." In the next few years, other states passed similar laws. Following the great Stock Market Crash of 1929, the federal government began to regulate investment activity with the passage of the Securities Acts of 1933 and 1934 and the creation of the U.S. Securities and Exchange Commission.

The Office of the Kansas Securities Commissioner is an independent state agency funded entirely by industry fees. The agency regulates and monitors the offering of securities and financial services within Kansas by registering securities, broker-dealers and their agents, investment advisers, loan brokers and certain land subdivisions. Agency staff also investigate potential violations of the laws and ensure that registered persons and entities comply with industry, legal, and accounting standards. The staff has the authority to investigate any investment related activity which has occurred in Kansas, even when companies or individuals from outside of the state are involved.

The Securities Commissioner administers the Kansas Securities Act, the Uniform Land Sales Practices Act, and the Loan Brokers Act. The Commissioner enforces these laws through civil, administrative and criminal proceedings.