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Bullion Coin Final Checklist


As of August 1, 2013:

  • You should determine whether you are a Bullion Coin Dealer by following the Step-by-Step Instructions.
  • You should comply with the sales practices/prohibited conduct requirements if your bullion coin transactions (both purchases and sales) with consumers for the 12-month period prior to August 1, 2013 meet the $5,000 aggregate transaction dollar amount discussed in Step Three of the Step-by-Step Instructions.
  • You should also maintain documentation of your bullion coin transactions with consumers for the period of July 1, 2013 through June 30, 2014 so that you can determine whether you will meet the $5,000 aggregate transaction dollar amount discussed in Step Three of the Step-by-Step Instructions and must 1) continue to comply with the sales practices/prohibited conduct requirements and 2) take necessary steps to comply with the registration, screening and surety bond requirements by July 1, 2014.
  • If you must comply with the sales practices/prohibited conduct requirements you must do the following:

You must provide the following information in writing to consumers purchasing or selling bullion coin:

  • You must provide in writing to consumers (in a clear and conspicuous manner) the sale or purchase price and the precious metal content, if known, of the bullion coin.  
  • If you do not know the precious metal content of the bullion coin, then you must indicate in writing that the precious metal content is not known and the purchase or sale price is not based on the precious metal content of the bullion coin.
  • You must provide this written notice to consumers prior to the bullion coin transaction or concurrent with the delivery of the bullion coin to the consumer. You must retain a copy of the written notice. 
  • You must also prepare a written invoice for each bullion coin transaction and provide a copy of the invoice to the consumer at the time of the transaction. You must also retain a copy the written invoice.
  • The written invoice must include the following information: 
    • Information that specifically identifies and describes the bullion coin being purchased or sold. 
    • The quantity of bullion coin being purchased or sold.
    • The bullion coin’s sale or purchase price.
    • The bullion coin’s precious metal content, if known. 
    • The registration identification numbers issued to you by the Department of Commerce. (Required after June 30, 2014)
    • The Department of Commerce’s e-mail address and telephone number as follows:

Minnesota Department of Commerce
Telephone Number: 651-539-1599
Email: licensing.commerce@state.mn.us

You must accurately state the following information to consumers purchasing or selling bullion coin:

  • The date you will deliver the bullion coin you have sold to them or the date that you will pay them for the bullion coin you have purchased from them.
  • Your qualifications, affiliations and registration information and the qualifications, affiliations and registration information for your coin dealer representatives.
  • The material aspects of the bullion coin you are marketing, selling, or purchasing, including the bullion coin’s  performance, efficacy, nature, investment value, central characteristics, liquidity, earnings potential, or profitability.
  • The manner in which you will store or otherwise handle bullion coin received from a consumer.

Additional actions you must take when selling bullion coin to consumers or purchasing bullion coin from consumers: 

  • You must deliver the bullion coin to consumers within the time you agreed to deliver them.  If you have not agreed to a time, then you must deliver the bullion coin within thirty days after consumers pay for them. 
  • You must pay consumers for the bullion coin you purchase from them within the time you agreed to pay them.  If you have not agreed to a time, then you must pay consumers within thirty days after consumers have provided the bullion coin to you.
  • Within 3 business days you must respond to consumers’ inquiries about the delivery status of bullion coin or payment status of bullion coin.

You are prohibited from do the following:

  • You must not renegotiate the terms of sale or purchase after receiving a consumer’s bullion coin or the consumer’s payment for bullion coin without first:
    • obtaining the consumer’s agreement to renegotiate the transaction, and
    • offering to fully refund the consumer’s payment or to return all of the consumer’s bullion coin to them. 
  • If consumers request not to be contacted, you must not telephone or solicit them or sell or provide their names to any other bullion coin dealer or coin dealer representative. 
  • You must not violate a subpoena or order from the Department of Commerce or a court.
  • You must not misrepresent to a consumer that you have a relationship with a government agency or mint.
  • You must not improperly withhold, misappropriate, or convert any money or properties received in the course of a buying, selling, soliciting or marketing bullion coin or investments in bullion coin to a consumer.
  • You must not misrepresent to a consumer the terms of an actual or proposed purchase or sale of bullion coin or investments in bullion coin.
  • You must not violate any other federal, state, or local laws or rules related to selling, purchasing, soliciting or marketing bullion coin, investments in bullion coin, or precious metals, or any federal, state or local laws related to taxation or labor standards.

NOTE:  “You” includes bullion coin dealers and their coin dealer representatives.  Bullion coin dealers are responsible for the actions of their coin dealer representatives who are conducting activities on their behalf or at their direction.

You are encouraged but not required to prepare and keep the following:

  • You may wish to prepare a separate document that sets out your qualifications and affiliations and those of your coin dealer representatives that you may then provide to consumers.
  • You may also want to prepare a document that could be used to obtain a consumer’s consent to renegotiate the terms of a sale or purchase and that the consumer was offered the option of a full refund or return of their bullion coin.
  • You should also carefully document any representations you make regarding any material aspect of the bullion coin you are marketing, selling to or purchasing from a consumer, including its performance, efficacy, nature, investment value, central characteristics, liquidity, earnings potential, or profitability.

What you should be doing to ensure your timely registration by July 1, 2014:

  • Before May 1, 2014, you should begin collecting the following information that will be required for you to register with the Department of Commerce:
    • Your name, assumed names, doing business as names, including caller identification names, and business addresses, the name of each owner and officer, and the name and primary work location of each of your coin dealer representative. A bullion coin dealer who wants to carry on business in more than one location must identify each address where business is conducted;
    • If you are doing business under any name other than the your legal name, you must have documentation that your assumed name has been properly filed with the Minnesota Secretary of State;
    • The telephone numbers, including cellular phone numbers, electronic mail addresses, and Website domain names you  or your coin dealer representatives use or intend to use to buy, sell, solicit, market, or deliver to consumers bullion coin or investments in bullion coin;
    • All criminal convictions by any court within the last ten years for you, each of your officers and owners, and for each of your coin dealer representatives;
    • Any civil judgments in favor of a government entity or government entity orders entered, filed, or issued against you, your officers and owners, or your  coin dealer representatives within the last ten years for violation of consumer protection laws or unfair trade practice laws or for failure to account to a consumer for money or property received from the consumer;
    • Any settlement or other agreement with any government entity within the last ten years resolving concerns that you, your officers and owners, or your coin dealer representatives violated consumer protection or unfair trade practice laws, or for failure to account to a consumer for money or property received from the consumer; and
    • Any instance in which you, your officers and owners, or your coin dealer representatives were at any time permanently or temporarily prohibited by any court of competent jurisdiction or ordered to cease and desist as the result of a government agency action from engaging in buying, selling, soliciting, or marketing of bullion coin or investments in bullion coin. (You may rely on the screening process provided for in Minn. Stat. § 80G.05 and the statements of your coin dealer representatives for the purposes of complying with the disclosure requirements of this clause relating to coin dealer representatives, provided that such reliance is reasonable, in good faith, and you have no knowledge of information suggesting that the screening results or statement are inaccurate.)
  • You should contact a vendor that meets the law’s requirements and request the vendor to conduct the required screening of your owners, officers and coin dealer representatives during the 60 period prior to the date you intend to submit your registration applications.
  • You should review the surety bond guidance and contact an insurance agent or company to purchase a surety bond prior to the date you intend to submit your bullion coin dealer and coin dealer representatives’ registration applications. 
  • Beginning as soon as possible after April 30, 2014, when the Department’s on-line registration process will be available, complete the bullion coin dealer and coin dealer representative registration applications through the Department of Commerce website. 

What you must do after you are registered: 

  • You must provide the Department of Commerce with written notice of any of the following changes in the information you provided in your registration applications:
    • your name, assumed names, doing business as names 
    • your business addresses, including business addresses at which you or your coin dealer representatives conduct business 
    • your owners 
    • your electronic mail addresses, Website domain names, or telephone numbers used by you or your coin dealer representatives to buy, sell, solicit, or market bullion coin or investments in bullion coin 

Written Notice of These Changes is Due Within 10 Days After the Change Occurs:

  • You must continue to comply with the sales practices/prohibited conduct requirements.
  • You must continue to maintain a surety bond.
  • Your must renew your registration and the registration of your coin dealer representatives each year by June 30th.