Blue Sky Law Basics for Paralegals

The Paralegal Resource
March 8, 2013 — 2,109 views  
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Blue sky compliance isn't simply about filing a form. It requires a skill set in order to find and understand the issues, investigate the complexities included, get relevant facts from different sources, collect all required data, and completely and accurately prepare and file all the required filings within a short time. Any error, including incorrectly recognizing and examining the issues, is likely to have a large impact.

Paralegal Duties

The role of a paralegal in analyzing blue sky securities filings is dependent upon his or her years of experience, the kinds of transaction that he has worked on, and the client. The preparation and handling of many documents for every state can get a bit overwhelming if the number of involved states is too high. The paralegal has to deal with a dynamic registration statement because of drafting. You are also required to locate the relevant citation for a state, calculate filing fee, prepare and give checks, and file proper documents.  You can avoid such issues in a few cases.

Paralegals' job is well-defined; they have to act within their scope for their field of law, but paralegals don't actually practice law. Rather, their main role is in preparation. They may also be required to perform some administrative responsibilities. They are expected to maintain files, track cases, and ensure that the practice is going on smoothly. The majority of paralegals choose to work for law firms, though they may also work in legal departments or corporations, or for the government.

The securities law that oversees market trading is very heavily regulated. Apart from Securities and Exchange Commission (SEC), there are over 50 other regulatory authorities that have a say in the administration of securities trading. The various securities paralegals and attorneys are tasked with transactional information, navigation of the regulatory landscape, and assuring complete disclosure of the relevant market data. Securities paralegals are mostly involved in drafting of documentations like bond purchases, registration paperwork for brokers, blue sky memorandum, promissory notes, registration statements, prospectuses, and various other securities agreements. The paralegals may also be required to prepare the annual reports for shareholders.

Paralegals have to review, research, and execute the administrative details given in the security law. The paralegals dealing with securities may also be responsible for filing issuer or dealer exemptions, blue sky registrations, managing details about the Committee on Uniform Identification Procedures (CUSIP), and SEC compliance. The securities attorneys can also delegate some of the tasks like attending closings, managing certification of state agency, and validating the insurance policies, opinions, and certificates of the client.


The blue sky laws may be a very complicated string of regulations, which can be a burden to all the parties involved. But these laws are beneficial for the buyers and ultimately the whole country. As a lot of paralegals avoid going into this subject, it can be very advantageous to master this corporate law. There are a lot of challenging aspects about these laws, and overcoming these challenges is both professionally and personally rewarding.

The Paralegal Resource