(1)As used in this section, the term:
(a)“Final judgment” includes an arbitration award confirmed by a court of competent jurisdiction.
(b)“Restitution order” means a court order awarding a specified monetary amount to a named aggrieved person for a violation of s. 517.07 or s. 517.301 to be paid by a named violator.
(2)(a) The Chief Financial Officer shall establish a Securities Guaranty Fund to provide monetary relief to victims of securities violations under this chapter who are entitled to monetary damages or restitution and cannot recover the full amount of such monetary damages or restitution from the wrongdoer. An amount not exceeding 20 percent of all revenues received as assessment fees pursuant to s. 517.12(10) and (11) for dealers and investment advisers or s. 517.1201 for f
Free access — add to your briefcase to read the full text and ask questions with AI
(1) As used in this section, the term: (a) “Final judgment” includes an arbitration award confirmed by a court of competent jurisdiction. (b) “Restitution order” means a court order awarding a specified monetary amount to a named aggrieved person for a violation of s. 517.07 or s. 517.301 to be paid by a named violator.
(2)(a) The Chief Financial Officer shall establish a Securities Guaranty Fund to provide monetary relief to victims of securities violations under this chapter who are entitled to monetary damages or restitution and cannot recover the full amount of such monetary damages or restitution from the wrongdoer. An amount not exceeding 20 percent of all revenues received as assessment fees pursuant to s. 517.12(10) and (11) for dealers and investment advisers or s. 517.1201 for federal covered advisers and an amount not exceeding 10 percent of all revenues received as assessment fees pursuant to s. 517.12(10) and (11) for associated persons must be part of the regular registration license fee and must be transferred to or deposited in the Securities Guaranty Fund. (b) If the balance in the Securities Guaranty Fund at any time exceeds $1.5 million, transfer of assessment fees to the fund must be discontinued at the end of that registration year, and transfer of such assessment fees may not resume unless the fund balance is reduced below $1 million by disbursement made in accordance with s. 517.141.
(3) A person is eligible for payment from the Securities Guaranty Fund if the person: (a)1. Is a judgment creditor in an unsatisfied final judgment or a named beneficiary or victim in an unsatisfied restitution order entered on or after October 1, 2024, in which a wrongdoer was found to have violated s. 517.07 or s. 517.301; 2. Has applied any amount recovered from the judgment debtor, a person ordered to pay restitution, or any other source to the damages awarded in a final judgment or restitution order; and 3. Is a natural person who was a resident of this state, or is a business entity that was domiciled in this state, at the time of the violation of s. 517.07 or s. 517.301; or (b) Is a receiver appointed pursuant to s. 517.191(2) by a court of competent jurisdiction for a wrongdoer ordered to pay restitution under s. 517.191(3) as a result of a violation of s. 517.07 or s. 517.301 which has requested payment from the Securities Guaranty Fund on behalf of a person eligible for payment under paragraph (a). If a person holds an unsatisfied final judgment or restitution order entered before October 1, 2024, in which a wrongdoer was found to have violated s. 517.07 or s. 517.301, such person’s claim for payment from the Securities Guaranty Fund shall be governed by the terms of this section and s. 517.141 which were effective on the date of such final judgment or restitution order.
(4) A person who has done any of the following is not eligible for payment from the Securities Guaranty Fund: (a) Participated or assisted in a violation of this chapter. (b) Attempted to commit or committed a violation of this chapter. (c) Profited from a violation of this chapter.
(5) An eligible person, or a receiver on behalf of the eligible person, seeking payment from the Securities Guaranty Fund must file with the office a written application on a form that the commission may prescribe by rule. The commission may adopt by rule procedures for filing documents by electronic means, provided that such procedures provide the office with the information and data required by this section. The application must be filed with the office within 1 year after the date of the final judgment, the date on which a restitution order has been ripe for execution, or the date of any appellate decision thereon, and, at minimum, must contain all of the following information: (a) The eligible person’s and, if applicable, the receiver’s full names, addresses, and contact information. (b) The name of the judgment debtor or person ordered to pay restitution. (c) If the eligible person is a business entity, the eligible person’s type and place of organization and, as applicable, a copy, as amended, of its articles of incorporation, articles of organization, trust agreement, or partnership agreement. (d) A copy of any final judgment or restitution order. (e) An affidavit from the eligible person stating either one of the following: 1. That the eligible person has made all reasonable searches and inquiries to ascertain whether the judgment debtor or person ordered to pay restitution possesses real or personal property or other assets subject to being sold or applied in satisfaction of the final judgment or restitution order and, by the eligible person’s search, that the eligible person has not discovered any property or assets. 2. That the eligible person has taken necessary action on the property and assets of the wrongdoers but the final judgment or restitution order remains unsatisfied. (f) If the application is filed by the receiver, an affidavit from the receiver stating the amount of restitution owed to the eligible person on whose behalf the claim is filed; the amount of any money, property, or assets paid to the eligible person on whose behalf the claim is filed by the person over whom the receiver is appointed; and the amount of any unsatisfied portion of any eligible person’s restitution order. (g) The eligible person’s residence or domicile at the time of the violation of s. 517.07 or s. 517.301 which resulted in the eligible person’s monetary damages. (h) The amount of any unsatisfied portion of the eligible person’s final judgment or restitution order. (i) Whether an appeal has been filed.
(6) If the office finds that a person is eligible for payment from the Securities Guaranty Fund and if the person has complied with this section and the rules adopted under this section, the office must approve payment to such person from the fund. Within 90 days after the office’s receipt of a complete application, each eligible person or receiver must be given written notice, personally or by mail, that the office intends to approve or deny, or has approved or denied, the application for payment from the Securities Guaranty Fund.
(7) Upon receipt by the eligible person or receiver of notice of the office’s decision that the eligible person’s or receiver’s application for payment from the Securities Guaranty Fund is approved, and before any disbursement, the eligible person shall assign to the office on a form prescribed by commission rule all right, title, and interest in the final judgment or order of restitution equal to the amount of such payment.
(8) The office shall deem an application for payment from the Securities Guaranty Fund abandoned if the eligible person or receiver, or any person acting on behalf of the eligible person or receiver, fails to timely complete the application as prescribed by commission rule. The time period to complete an application must be tolled during the pendency of an appeal or motion to vacate an arbitration award.