Civil Liability

What this video covers

• Who faces civil liability: sellers, investment advisers, and controlling persons, including partners, officers, directors, and anyone who materially aids the violation
• Why registration violations are strict liability with no reasonable care defense, while fraud claims allow a reasonable care defense
• How buyer remedies differ from investment adviser client remedies, specifically the addition of costs and reasonable attorney's fees for adviser clients
• The two-part statute of limitations: three years from the contract of sale or rendering of advice, OR two years from discovery, whichever expires first
• How rescission offers work and why silence for 30 days bars the right to sue for buyers who still own the security, while sold-security buyers must affirmatively reject in writing
• The 60-day deadline for judicial review of administrative orders and why filing an appeal does not automatically stay the administrator's order
• Why causes of action survive death, client waiver provisions are void, and contracts made in violation are unenforceable by the violator