HB 88 Summary

• Reorganizes Delaware Securities Act (Title 6, Chapter 73) into seven subchapters for improved organization and clarity.

• Expands definition of "security" to explicitly include viatical settlement contracts, annuity contracts, and advance fee agreements.

• Amends anti-fraud provisions to allow reckless conduct to satisfy scienter requirements and eliminates burden of proving loss, proximate cause, or reliance in government enforcement actions.

• Increases registration and filing fees for broker-dealers, agents, investment advisers, and federal covered advisers, with filing fee range of $500-$1,500.

• Creates enhanced criminal penalties for violations harming elderly (age 62+), infirm, or disabled persons, with potential class D felony charges and up to 8 years imprisonment.

• Establishes exemption for viatical settlement contracts meeting specified conditions including compliance with Delaware Viatical Settlements Act and Commissioner notification.

• Adds 30-day rescission right for non-institutional investors in viatical settlement contracts and allows administrative orders to be filed as Superior Court judgments.

• Expands statute of limitations to 8 years total (5-year base plus up to 3-year extension for fraudulent concealment).