Thursday, January 24, 2019

January 24, 2019 (LINCOLN, NEB.) —The Nebraska Department of Banking and Finance (NDBF) announced today the release of a new Informed Investor Advisory to raise investor awareness of the risks associated with investments in promissory notes.
State securities regulators have identified promissory notes as a leading source of complaints to their agencies. In fact, the North American Securities Administrators Association (NASAA), of which NDBF is a member, reported 210 investigations involving promissory notes, which led to 149 formal enforcement actions by state securities regulators in 2017.
The advisory reminds investors to be cautious of short-term promissory notes. Investors should be cautious about promissory notes with durations of nine months or less, as these notes generally do not require federal or state securities registration. Such short-term notes have been the source of most (though not all) of the fraudulent activity involving promissory notes.
The full advisory is available here:
Before making any financial decisions, ask questions, do your homework and contact NDBF at 402-471-2171.
More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.


Informed Investor Advisory Promissory Notes.pdf

Consumer Advisory - Promissory Notes.pdf