Every SECURITY is subject to the Uniform Securities Act's anti-fraud provisions. Some securities are exempt, and some are sold thru exempt transactions. Those securities don't have to be registered. But they are still securities, so if they are sold deceptively, the anti-fraud provisions apply. The folks who put out bogus offering documents, misstating important facts and leaving out important negative information, can be prosecuted and/or sued.
But--and the test is exactly this tricky and mean--if the investment is NOT A SECURITY, it is not subject to anything under the Uniform Securities Act. Therefore, the test could ask you whether a fixed annuity or whole life insurance would be subject to the anti-fraud provisions. The answer?
Why?They're not securities. But a Treasury bond, a municipal bond, or a church bond--though they don't have to be registered--are all securities. Therefore, they are still subject to the Uniform Securities Act's anti-fraud provisions.
And then the securities that are not exempt (non-exempt securities) are not only subject to the anti-fraud provisions, but also they have to either be registered with the Administrator or sold through an exempt transaction.
That way the regulators can keep things the way they like them--nice and simple.