New Rescission Rule Provides Greater Clarity To Broker-Dealers, Firms And Investors On Rescission Offers

Tuesday, May 4, 2021
A new rule recently adopted by the Tennessee Department of Commerce & Insurance’s (TDCI) Securities Division provides issuers, broker-dealers and Tennessee investors with more clarity when it comes to offers of rescission.
A rescission offer happens when an issuer offers to repurchase an investor’s securities and refund the purchase price plus interest.
On occasion, an issuer may seek to make offers of rescission to investors when it is believed there was a possible violation of registration requirements. TDCI’s Securities Division maintains a public register of all registration applications and registration statements.
In the past, a rescission offer was required to be registered with the TDCI. The new rule still means establishing the creation of a record of the violations that necessitated the rescission offer, but it does not require the rescission offer itself to be registered. The rule sets forth all elements that must be provided to the Division for a valid rescission offer. The timing and requirements of the notice that must be sent to purchasers are all set forth in the new rule.
“This new rule promotes public confidence in capital markets as it provides clarity, consistency and transparency to people conducting and receiving rescission offers,” said TDCI Assistant Commissioner for Securities Elizabeth Bowling. “Issuers or investors who have questions should contact our team.”

Click here to read the rule.

Investors who have questions may contact TDCI’s Securities team via tn.gov/securities, phone at 615-741-2947 or 800-863-9117 or by email at securities.1@tn.gov.

Chattanooga-Based Skuid Named Best Workplace By Inc.

BBB 2021 “Student Of Integrity” Scholarship Winners Announced

CBCC Women’s Council To Host 1st Hybrid Meeting May 24


Skuid, a toolkit for creating human-centered digital experiences, has been named to Inc. Magazine’s annual list of the Best Workplaces for 2021. The list came from a wide-ranging and comprehensive ... (click for more)

The Better Business Bureau serving Southeast Tennessee and Northwest Georgia announce the “Student of Integrity” scholarship winners for 2021. BBB will conduct its formal meeting and presentation ... (click for more)

The Cleveland/Bradley Chamber of Commerce Women’s Council will host its first program of the year on Monday, May 24 at noon in a hybrid format. Sponsored by Tennova Healthcare, the meeting will ... (click for more)



Business

Chattanooga-Based Skuid Named Best Workplace By Inc.

Skuid, a toolkit for creating human-centered digital experiences, has been named to Inc. Magazine’s annual list of the Best Workplaces for 2021. The list came from a wide-ranging and comprehensive measurement of American companies that have created exceptional workplaces and company culture whether teams are operating in person or remotely. Officials said Skuid was founded on ... (click for more)

BBB 2021 “Student Of Integrity” Scholarship Winners Announced

The Better Business Bureau serving Southeast Tennessee and Northwest Georgia announce the “Student of Integrity” scholarship winners for 2021. BBB will conduct its formal meeting and presentation at its Annual Meeting scheduled for Wednesday, Aug. 11. Businesses nominated and who complete for the BBB “Torch Award for Marketplace Ethics” award will also be recognized. Now in ... (click for more)

Breaking News

Roadtec, Inc. To Expand Chattanooga Operations With $6.2 Million Investment

Roadtec, Inc. officials announced on Wednesday that the paving equipment manufacturer will expand its operations in Chattanooga. Roadtec will invest $6.2 million to make building and site improvements and relocate its Washington operations to its headquarters in Tennessee. The project represents the creation of 128 new jobs in Hamilton County. Roadtec, a subsidiary of ... (click for more)

County Commissioners Anxious To Expand Number Of Officers At Hamilton County Schools

County Commission members said Tuesday they are anxious to expand the number of officers at county school campuses - even if it means using a number of security guards in addition to School Resource Officers. They said they are concerned that a tragic incident will occur on a local campus with no officer present - either from not being assigned one or from the SRO being called ... (click for more)

Opinion

Please Stop Calling Us “Latinx”

We’re asking nicely, because we think the use of the term has been mostly well-intentioned. But let’s start with some numbers: a mere 3 percent of Americans of Latin-American descent use “Latinx” to describe themselves. This is based on a 2020 Pew Research poll of about 3,000 American Latinos. Those who want for “Latinx” to become the default say it’s preferable because it’s ... (click for more)

Roy Exum: Earn Life's "Free Lunches"

The worst debacle in our nation’s history, it is beginning to be proven, was when the United States was quarantined during the COVID-19 epidemic. Our economy – from employment to production – was stymied. Our next generation responded with virtually no education for an entire year and a surging teen suicide epidemic and the biggest profits that were made in the second half of 2020 ... (click for more)