SB640 Summary

• Exempts registered out-of-state broker-dealers from Arkansas registration if they have no place of business in Arkansas and conduct securities transactions with no more than 3 persons within any 12-month period.

• Defines "online intermediary" as a person facilitating securities transactions through a website without offering investment advice, soliciting purchases, compensating based on sales, or handling purchaser funds.

• Establishes an intrastate crowdfunding exemption allowing Arkansas businesses to raise up to $1,000,000 (or $2,000,000 with audited financials) from no more than 35 non-accredited investors within 12 months, subject to escrow requirements and issuer disclosures.

• Requires online intermediaries to file registration statements with the commissioner, consent to service of process, maintain records of all offerings, and comply with financial reporting and supervisory procedure requirements.

• Limits commissioner authority to require filings for covered securities under federal Securities Act sections 18(b)(3) and 18(b)(4) to concurrent filing with the SEC and a $100 filing fee.