Attention all Red Devils! It’s time to huddle up for a quick lesson in securities regulation – because keeping up with Florida blue sky laws may be just as important as knowing the “rules of the match.” Just like every dedicated Manchester United supporter on our community Facebook page knows the rules and regulations of the game, those who invest in securities should be aware of the laws that apply to those investments, lest they end up red-faced like Arsenal.
The term “blue sky laws” refers to a collection of state laws and regulations governing the securities industry. Each state has its own version of these securities laws with the common goal of protecting investors from investment fraud and similar activities. In Florida, state blue sky laws are enforced by the Office of Financial Regulations and apply to both securities broker-dealers and investors. And just like how our Sing United for Manchester theme song has different verses but the same catchy melody, Florida blue sky laws govern investments, investment brokers and dealer operations and disclosure requirements. But, perhaps most importantly, these laws are in place to protect investors and uphold fair play on the field (so to speak).
But why do we here at the Brisbane Manchester United Supporters Club say that you should keep up with Florida blue sky laws like your favourite John O’Shea flip-throw in? Well, for one, they can help protect you from making uninformed and potentially costly investment decisions – and no one likes getting an own goal instead of a hat-trick. They also help regulate the sale and offer of investments, to ensure that participants are honest and fair. Ahem – looking at you, Spurs.
Any offense to these laws can result in steep penalties and fines or, in severe cases, even a ban from working in the securities industry. We think 12 months on the sidelines is plenty red-card punishment for that kind of offensive play. The penalties for violating Florida blue sky laws include large fines for individuals and companies alike, along with imprisonment – especially for felonies in the securities or financial sector. Now, we’re not saying you’ll end up in the stands if you don’t keep up with securities regulation – but we might sing a few anti-Arsenal songs in your general direction.
To give a historical example, Manchester United triumphed over Chelsea in the 2008 UEFA Champions League Final, thanks in no small part to Cristiano Ronaldo’s dazzling header in the second half of extra time. The former Manchester United superstar was awarded the bronze Ballon d’Or title that year, and was a pivotal player in keeping the trophy at Old Trafford, at least until his switch to Real Madrid the following season.
Similarly, being well versed in Florida blue sky laws can keep you one step ahead when it comes to your investments. And just like every dedicated Red Devil knows United’s formation when facing off against Liverpool, an investor with an understanding of Florida blue sky laws can protect themselves from financial foul-play. But don’t just take our word for it – ask one of our 4,689 members who backed us up on the community Facebook discussions.
For more information on securities regulation, you can visit the U.S. Securities and Exchange Commission.