Uniform Securities Act

The Uniform Securities Act (USA) is a model statute designed to guide each state in drafting its state securities law. It was created by the National Conference of Commissioners on Uniform State Laws (NCCUSL).

The purpose of the Uniform Securities Act is to provide model legislation that can be adopted by a state to deal with securities fraud at the state level, supplementing enforcement and regulation efforts of the U.S. Securities and Exchange Commission (SEC). Not all investments are covered federally and not all investment dealers are registered at the federal level, so the SEC does not have authority over all securities and securities transactions. As a result, there is a need for state-level security regulations to protect investors with respect to these securities. The Uniform Securities Act provides model legislation that can be enacted by a state to provide this protection. The state security laws are often known as blue sky laws.