DAR File No. 30258

Commerce, Securities

R164-1

Fraudulent Practices

FIVE-YEAR NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

DAR File No.: 30258
Filed: 07/30/2007, 02:49
Received by: NL

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsection 61-1-1(3) of the Utah Uniform Securities Act states that it is unlawful for any person to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person. Subsection 61-1-24(1)(a) allows the division to make rules necessary to carry out the provisions of the Act. Rule R164-1 helps to clarify Subsection 61-1-1(3) by identifying some acts and practices that are deemed fraudulent.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

No written comments have been received.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule assists the public and courts in interpreting "act, practice, or course of business which operates or would operate as a fraud or deceit upon any person" and should be continued. The list is not all-inclusive, but gives individuals some guidelines in determining whether their acts and practices are fraudulent in nature.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Securities
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Charles Lyons at the above address, by phone at 801-530-6940, by FAX at 801-530-6980, or by Internet E-mail at clyons@utah.gov

Authorized by:

Wayne Klein, Director