1. A. All financial statements submitted with an application to register securities or for inclusion in a Prospectus used in this State, except a Prospectus relating to a federal covered security, shall be audited by an Independent Certified Public Accountant regularly engaged in business as such; provided, however (1) that interim statements prepared since the close of the last fiscal year shall not be required to be audited if prepared on a basis comparable to those audited, and (2) that financial statements approved by the South Carolina Department of Insurance or the United States Securities and Exchange Commission (“SEC”) may be accepted by the Securities Commissioner in his discretion.
2. B. Where a company has been in business for less than one (1) year and submits one statement only which covers a period of less than one (1) year, such statement shall be audited.
3. C. A report signed by the Independent Certified Public Accountant should accompany the statements.
4. D. Financial statements filed with an application for registration of securities shall be updated when necessary so that the Prospectus as finally approved and in definitive form shall contain statements as of a date not more than six (6) months prior to the date of the Prospectus.
5. E. A Prospectus relating to securities in registration should be amended or supplemented whenever necessary to reflect any material changes, but in any event at least once in any period of twelve (12) consecutive months, in order to bring financial data up to date. Failure of the registrant to do so shall be considered cause for suspension of registration. The Securities Commissioner shall have discretion to determine whether to require the reprinting of the entire Prospectus.
6. F. The Securities Commissioner by rule or order, may waive any or all of the provisions of this Order.

HISTORY: Added by State Register Volume 30, Issue No. 6, eff June 23, 2006; State Register Volume 39, Issue No. 6, Doc. No. 4525, eff June 26, 2015.