Iowa Code tit. XII, ch. 502A, subch. II

in effect

Iowa Code § 502A.11 Investigations.

502A.11. Investigations. 1. The administrator may make investigations, within or without this state, as the administrator finds necessary or appropriate to do either or both of the following: a. Determine whether any person has violated, or is about to violate this chapter or any rule or order of the administrator. b. Aid in enforcement of this chapter. 2. The administrator may publish information concerning a violation of this chapter or any rule or order of the administrator. 3. For purposes of an investigation or proceeding under this chapter, the administrator or any officer or employee designated by rule or order, may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the administrator finds to be relevant or material to the inquiry. 4. a. If a person does not give testimony or produce the documents required by the administrator or a designated employee pursuant to an administrative subpoena, the administrator or designated employee may apply for a court order compelling compliance with the subpoena or the giving of the required testimony. b. The request for order of compliance may be addressed to either of the following: (1) The Polk county district trial court or the district court where service may be obtained on the person refusing to testify or produce, if the person is within this state. (2) The appropriate court of the state having jurisdiction over the person refusing to testify or produce, if the person is outside this state. 90 Acts, ch 1169, §10

Iowa Code § 502A.12 Enforcement of chapter.

502A.12. Enforcement of chapter. 1. If the administrator believes, whether or not based upon an investigation conducted under section 502A.11, that a person has engaged or is about to engage in an act or practice constituting a violation of this chapter or a rule or order issued under this chapter, the administrator may do any or all of the following: a. Issue a cease and desist order. b. Issue an order imposing a civil penalty in amount which may not exceed ten thousand dollars for a single violation or one hundred thousand dollars for multiple violations in a single proceeding or a series of related proceedings. c. Initiate any of the actions specified in subsection 2. 2. The administrator may institute any or all of the following actions in the appropriate courts of this state, or in the appropriate courts of another state, in addition to any legal or equitable remedies otherwise available: a. A declaratory judgment. b. An action for a prohibitory or mandatory injunction to enjoin the violation and to ensure compliance with this chapter or a rule or order of the administrator. c. An action for disgorgement. d. An action for appointment of a receiver or conservator for the defendant or the defendant’s assets. e. An action for restitution. 90 Acts, ch 1169, §11

Iowa Code § 502A.13 Power of court to grant relief.

502A.13. Power of court to grant relief. 1. a. Upon a proper showing by the administrator that a person has violated, or is about to violate, this chapter or a rule or order of the administrator, a court of competent jurisdiction may grant appropriate legal or equitable remedies. b. Upon showing of violation of this chapter or a rule or order of the administrator, the court, in addition to traditional legal and equitable remedies, including temporary restraining orders, permanent or temporary prohibitory or mandatory injunctions, and writs of prohibition or mandamus, may grant any or all of the following special remedies: (1) Imposition of a civil penalty in amount which may not exceed ten thousand dollars for any single violation or one hundred thousand dollars for multiple violations in a single proceeding or a series of related proceedings. (2) Disgorgement. (3) Declaratory judgment. (4) Restitution to investors wishing restitution. (5) Appointment of a receiver or conservator for the defendant or the defendant’s assets. c. Appropriate remedies when the defendant is shown only about to violate this chapter or a rule or order of the administrator shall be limited to any or all of the following: (1) A temporary restraining order. (2) A temporary or permanent injunction. (3) A writ of prohibition or mandamus. (4) An order appointing a receiver or conservator for the defendant or the defendant’s assets. 2. The court shall not require the administrator to post a bond in any official action under this chapter. 3. a. Upon a proper showing by the administrator or securities or commodity agency of another state that a person, other than a government or governmental agency or instrumentality, has violated, or is about to violate, the commodity code of that state or a rule or order of the administrator or securities or commodity agency of that state, the district court may grant appropriate legal and equitable remedies. b. Upon showing of a violation of the securities or commodity act of the foreign state or a rule or order of the administrator or securities or commodity agency of the foreign state, the court, in addition to traditional legal or equitable remedies including temporary restraining orders, permanent or temporary prohibitory or mandatory injunctions and writs of prohibition or mandamus, may grant either or both of the following special remedies: (1) Disgorgement. (2) Appointment of a receiver, conservator, or ancillary receiver or conservator for the defendant or the defendant’s assets located in this state. c. Appropriate remedies when the defendant is shown only about to violate the securities or commodity act of the foreign state or a rule or order of the administrator or securities or commodity agency of the foreign state shall be limited to any or all of the following: (1) A temporary restraining order. (2) A temporary or permanent injunction. (3) A writ of prohibition or mandamus. (4) An order appointing a receiver, conservator, or ancillary receiver or conservator for the defendant or the defendant’s assets located in this state. 90 Acts, ch 1169, §12

Iowa Code § 502A.14 Criminal penalties.

502A.14. Criminal penalties. 1. A person who willfully violates either of the following shall, upon conviction, be fined not more than twenty thousand dollars or be imprisoned not more than ten years, or both, for each violation. a. This chapter. b. A rule or order of the administrator under this chapter. 2. A person convicted of violating a rule or order under this chapter may be fined, but may not be imprisoned, if the person proves the person had no knowledge of the rule or order. 3. The administrator may refer such evidence as is available concerning violations of this chapter or any rule or order of the administrator to the attorney general or the proper county attorney, who may, with or without such a reference from the administrator, institute the appropriate criminal proceedings under this chapter. 4. This chapter does not limit the power of the state to proceed against a person for conduct which constitutes a breach of duty, a crime, or a violation under common law, rule, or another statute. An action pursuant to this chapter is not an election of remedies, and an aggrieved person or the state retains any other common law or statutory causes of action which may exist against a person alleged to have violated this chapter or against a person convicted of such a violation. 90 Acts, ch 1169, §13

Iowa Code § 502A.15 Administration of chapter.

502A.15. Administration of chapter. 1. This chapter shall be administered by the administrator of the securities and regulated industries bureau of the insurance division of the department of insurance and financial services. 2. The administrator or any employees of the administrator shall not use any information which is filed with or obtained by the administrator which is not public information for personal gain or benefit, and the administrator or any employees of the administrator shall not conduct any securities or commodity dealings based upon any such information, even though public, if there has not been a sufficient period of time for the securities or commodity markets to assimilate such information. 3. a. Except as provided in paragraph “b”, all information collected, assembled, or maintained by the administrator is public information and is available for the examination of the public as provided by chapter 22. b. The following are exceptions to paragraph “a” and are confidential: (1) Information obtained in an investigation pursuant to section 502A.11, unless published pursuant to section 502A.11, subsection 2. (2) Information made confidential by chapter 22. (3) Information obtained from federal agencies which cannot be disclosed under federal law. c. The administrator in the administrator’s discretion may disclose any information made confidential under paragraph “b” to persons identified in section 502A.16, subsection 1. d. This chapter does not create or derogate any privilege which exists at common law, by statute or otherwise when documentary or other evidence is sought under subpoena directed to the administrator or any employee of the administrator. 90 Acts, ch 1169, §14; 2006 Acts, ch 1117, §142023 Acts, ch 19, §2725

Iowa Code § 502A.16 Cooperation with other agencies.

502A.16. Cooperation with other agencies. 1. To encourage uniform application and interpretation of this chapter and securities regulation and enforcement in general, the administrator and the employees of the administrator may cooperate, including bearing the expense of the cooperation, with the securities agencies or administrator of another jurisdiction, Canadian province or territory or such other agencies administering this chapter, the commodity futures trading commission, the United States securities and exchange commission, any self-regulatory organization established under the Commodity Exchange Act or the federal Securities Exchange Act of 1934, any national or international organization of commodities or securities officials or agencies, and any governmental law enforcement agency. 2. The cooperation authorized by subsection 1 shall include, but need not be limited to, any or all of the following: a. Making joint examinations or investigations. b. Holding joint administrative hearings. c. Filing and prosecuting joint litigation. d. Sharing and exchanging personnel. e. Sharing and exchanging information and documents. f. Formulating and adopting mutual regulations, statements of policy, guidelines, proposed statutory changes, and releases. g. Issuing and enforcing subpoenas at the request of the agency administering this chapter in another jurisdiction, the securities agency of another jurisdiction, the commodity futures trading commission or the United States securities and exchange commission if the information sought would also be subject to lawful subpoena for conduct occurring in this state. 90 Acts, ch 1169, §15

Iowa Code § 502A.17 General authority to adopt rules, forms, and orders.

502A.17. General authority to adopt rules, forms, and orders. 1. In addition to specific authority granted elsewhere in this chapter, the administrator may adopt rules and forms, pursuant to chapter 17A, and issue orders as are necessary to administer this chapter. Rules or forms to be adopted shall include, but need not be limited to, the following: a. Rules defining any terms, whether or not used in this chapter, insofar as the definitions are not inconsistent with the provisions of this chapter. b. For the purpose of rules or forms, the administrator may classify commodities and commodity contracts, persons, and matters within the administrator’s jurisdiction. 2. Unless specifically provided in this chapter, a rule, form, or order shall not be adopted or issued unless the administrator finds that the action is both of the following: a. Necessary or appropriate in the public interest or for the protection of investors. b. Consistent with the purposes fairly intended by the policy of this chapter. 3. All rules and forms of the administrator shall be published as provided in chapter 17A. 4. A provision of this chapter imposing any liability shall not apply to an act done or omitted in good faith in conformity with a rule or form adopted or order issued by the administrator, notwithstanding that the rule, order, or form may later be amended, or rescinded, or be determined by judicial or other authority to be invalid for any reason. 90 Acts, ch 1169, §16

Iowa Code § 502A.18 Consent to service of process.

502A.18. Consent to service of process. When a person, including a nonresident of this state, engages in conduct prohibited or made actionable by this chapter or any rule or order of the administrator, the conduct shall constitute the appointment of the administrator as the person’s attorney to receive service of any lawful process in a noncriminal proceeding against the person, a successor, or personal representative, which grows out of that conduct and which is brought under this chapter or any rule or order of the administrator with the same force and validity as if served personally. 90 Acts, ch 1169, §17

Iowa Code § 502A.19 Chapter scope.

502A.19. Chapter scope. 1. Sections 502A.2, 502A.5, and 502A.6 apply to a person who sells or offers to sell when either of the following occurs: a. An offer to sell is made in this state. b. An offer to buy is made and accepted in this state. 2. Sections 502A.2, 502A.5, and 502A.6 apply to a person who buys or offers to buy when either of the following occur: a. An offer to buy is made in this state. b. An offer to sell is made and accepted in this state. 3. For the purpose of this section, an offer to sell or to buy is made in this state, whether or not either party is then present in this state, when either of the following occurs: a. The offer originates from this state. b. The offer is directed by the offeror to this state and received at the place to which it is directed, or at any post office in this state in the case of a mailed offer. 4. For the purpose of this section, an offer to buy or to sell is accepted in this state when the acceptance satisfies both of the following conditions: a. The acceptance is communicated to the offeror in this state. b. The acceptance has not previously been communicated to the offeror, orally or in writing, outside this state; and acceptance is communicated to the offeror in this state, whether or not either party is then present in this state, when the offeree directs it to the offeror in this state, reasonably believing the offeror to be in this state and it is received at the place to which it is directed, or at any post office in this state in the case of a mailed acceptance. 5. An offer to sell or to buy is not made in this state when either of the following occurs: a. The publisher circulates or there is circulated on the publisher’s behalf in this state any bona fide newspaper or other publication of general, regular, and paid circulation which is not published in this state, or which is published in this state but has had more than two-thirds of its circulation outside this state during the past twelve months. b. A radio or television program originating outside this state is received in this state. 90 Acts, ch 1169, §18

Iowa Code § 502A.20 Effect of pending judicial review.

502A.20. Effect of pending judicial review. The filing of a petition for judicial review pursuant to chapter 17A does not, unless specifically ordered by the court, operate as a stay of the administrator’s order, and the administrator may enforce or ask the court to enforce the order pending the outcome of the review proceedings. 90 Acts, ch 1169, §19

Iowa Code § 502A.21 Pleading exemptions.

502A.21. Pleading exemptions. It is not necessary for the state to plead the absence of an exemption under this chapter in a complaint, information, or indictment, or a writ or proceeding brought under this chapter. The burden of proof of a claimed exemption is upon the party claiming the exemption. 90 Acts, ch 1169, §20

Iowa Code § 502A.22 Affirmative defense.

502A.22. Affirmative defense. It is an affirmative defense in a complaint, information, indictment, writ, or proceeding brought under this chapter alleging a violation of section 502A.2 based solely on the failure in an individual case to make physical delivery within the applicable time period under section 502A.1, subsection 5, or section 502A.4, subsection 1, paragraph “b” if both of the following apply: 1. Failure to make physical delivery was due solely to factors beyond the control of the seller, the seller’s officers, directors, partners, agents, servants, or employees, every person occupying a similar status or performing similar functions, every person who directly or indirectly controls or is controlled by the seller, or any of them, the seller’s affiliates, subsidiaries, or successors. 2. Physical delivery was completed within a reasonable time under the applicable circumstances. 90 Acts, ch 1169, §21

Source: Iowa Legislature (legis.iowa.gov)URL: https://www.legis.iowa.gov/law/iowaCode/sections?codeChapter=502A&year=2026Fetched: 10/20/2026