8. Please cite the specific promulgation authority for the rules (i.e. department director,
commission, board, etc.).
MCL 451.2102(a) under the MUSA defines “administrator” as the Office of Financial and
Insurance Regulation. Executive Reorganization Order No 2012-6, MCL 445.2034, transferred
the Securities Division of the Office of Financial and Insurance Regulation to the Department of
Licensing and Regulatory Affairs on November 6, 2012. The Department Director delegated
authority as the Administrator of the MUSA to the Corporations, Securities, and Commercial
Licensing Bureau Director.
MCL 451.2412(5) states, “A rule or order under this act may require that an examination,
including an examination developed or approved by an organization of securities regulators, be
successfully completed by a class of individuals or all individuals. An order under this act may
waive an examination as to an individual and a rule under this act may waive an examination as to
a class of individuals if the administrator determines that the examination is not necessary or
appropriate in the public interest and for the protection of investors.”
MCL 451.2605(1)(a) and (c) allow the Administrator to, after notice and comment, adopt and
amend rules necessary or appropriate to carry out the MUSA, and may by rule classify securities,
persons, and transactions, and adopt different requirements for different classes.
A. Please list all applicable statutory references (MCLs, Executive Orders, etc.).
MCL 451.2102, MCL 451.2102a, MCL 451.2102c, MCL 451.2401, MCL 451.2402, MCL
451.2403, MCL 451.2404, MCL 451.2405, MCL 451.2406, MCL 451.2407, MCL 451.2408, MCL
451.2409, MCL 451.2411, MCL 451.2412, MCL 451.2601, MCL 451.2605, MCL 451.2608,
Executive Reorganization Order NO. 2012-6, MCL 445.2034.
B. Are the rules mandated by any applicable constitutional or statutory provision? If so, please
9. Please describe the extent to which the rules conflict with or duplicate similar rules,
compliance requirements, or other standards adopted at the state, regional, or federal level.
These rules will not conflict with or duplicate similar rules, compliance requirements, or other
standards adopted at the state, regional, or federal level. They would promote uniformity and
consistency with parallel requirements of other regulatory bodies.
10. Is the subject matter of the rules currently contained in any guideline, handbook, manual,
instructional bulletin, form with instructions, or operational memoranda?
11. Are the rules listed on the department’s annual regulatory plan as rules to be processed
for the current year?
12. Will the proposed rules be promulgated under Section 44 of the Administrative Procedures
Act, 1969 PA 306, MCL 24.244, or under the full rulemaking process?
13. Please describe the extent to which the rules exceed similar regulations, compliance
requirements, or other standards adopted at the state, regional, or federal level.
The rules do not exceed similar regulations, compliance requirements, or other standards adopted
at the state, regional, or federal level.