Colorado Securities Regulation Continuation Act

Detected March 21st, 2026

Summary

Colorado HB26-1188 continues the regulation of securities and the securities board until 2037. The bill clarifies public document status for deficiency letters, requires licensing for investment advisers, updates appointment processes for the securities commissioner, and revises cease-and-desist and license suspension procedures.

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What changed

Colorado HB26-1188 extends the Division of Securities and the Securities Board until 2037, implementing recommendations from the 2025 sunset report. Key changes include clarifying that deficiency letters are not public documents, mandating licensing for investment advisers operating in Colorado unless exempt, requiring consultation with the Securities Board for the appointment of the Securities Commissioner, and updating statutory language for gender neutrality. The bill also significantly revises the process for issuing cease-and-desist orders and summary license suspensions, shifting authority to the commissioner to issue preliminary orders, with a right to request a hearing within 15 days, which must occur within 30 days of the order's issuance. Orders become final if no hearing is requested and must be obeyed until resolved.

Compliance officers for investment advisers and related entities in Colorado must ensure their representatives are properly licensed and understand the new procedures for deficiency letters and cease-and-desist orders. The revised process for cease-and-desist orders and license suspensions requires prompt action if an order is issued, as failure to request a hearing within 15 days will result in the order becoming final. Entities must also ensure compliance with gender-neutral language updates. The continuation of these regulatory bodies until 2037 indicates a long-term regulatory framework for securities in Colorado.

What to do next

Ensure investment advisers and representatives are licensed in Colorado.
Review and update internal procedures for responding to deficiency letters and cease-and-desist orders.
Comply with new requirements for preliminary cease-and-desist orders and summary license suspensions, including timely hearing requests.

Penalties

The bill revises the process by which a cease-and-desist order is issued or a license is summarily suspended. Failure to obey an order until a hearing is resolved may result in penalties.

Source document (simplified)

HB26-1188

Sunset Process Securities Regulation

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Financial Services & Commerce |
Concerning the continuation of the regulation of securities, and, in connection therewith, implementing the recommendations of the department of regulatory agencies in the department's 2025 sunset report.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

Sunset Process - House Finance Committee. The bill implements the recommendations of the department of regulatory agencies in its 2025 sunset review and report by continuing the division of securities and the securities board until 2037. In connection with continuing these entities, the bill:

Clarifies that deficiency letters and communications concerning a deficiency letter are not public documents that may be inspected under the "Colorado Open Records Act";
Requires that an investment adviser or an investment adviser representative doing business in Colorado must be licensed by the securities commissioner (commissioner) unless otherwise exempt;
Specifies that the executive director of the department of regulatory agencies must consult with the securities board when appointing the commissioner; and
Updates statutory language to be gender neutral. The bill revises the process by which a cease-and-desist order is issued or a license is summarily suspended. Under current law, the commissioner issues a cease-and-desist order or conducts a summary license suspension by issuing an order to show cause as to why a cease-and-desist order or license suspension should not be issued. After appropriate notices are given, a hearing is scheduled with the securities board or an administrative law judge. At the hearing, it is determined whether to issue a cease-and-desist order or suspend the license and what form the order or suspension will take. The bill changes this process to authorize the commissioner to issue a preliminary cease-and-desist order or a summary license-suspension order. If the person that is the subject of the order disagrees with the order, the person may request a hearing to resolve the issue. The hearing must take place within 30 days after issuance of the order. If a hearing is not requested within 15 days after issuance of the order, the order becomes final. The person that is the subject of the order must obey the order until a hearing is requested.

(Note: This summary applies to this bill as introduced.)