How to Be Securities Paralegal - Job Description, Skills, and Interview Questions

Feb 18, 2020 / 6 Minutes Read / By Albert

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Due to an increase in complexity of securities laws, the demand for experienced securities paralegals has risen significantly. These legal professionals are responsible for researching, drafting and filing documents related to securities law, such as registration statements, prospectuses, and disclosure statements. They must be knowledgeable about SEC regulations, and have a comprehensive understanding of the legal and business issues related to the securities industry.

Securities paralegals are also responsible for compiling and organizing data for securities offerings and other transactions, performing due diligence investigations, and monitoring compliance with applicable securities laws. As there is an increasing complexity of securities laws, the need for highly-skilled securities paralegals will continue to grow.

Steps How to Become

Obtain a Bachelor's Degree. To become a securities paralegal, the first step is to obtain a bachelor's degree. A degree in paralegal studies, business, finance, accounting or law is preferred.
Get Certified. Although certification is not required to become a securities paralegal, it can help enhance your employability and earning potential. The National Federation of Paralegal Associations offers the Certified Paralegal (CP) designation for those who pass its exam.
Gain Experience. Many employers prefer to hire securities paralegals with some experience in the legal field. You can gain experience through internships and volunteer opportunities.
Get Familiar with Securities Laws. As a paralegal, you will need to be familiar with state and federal securities laws. You should also be able to understand and interpret financial documents.
Become Proficient in Computer Software Programs. Securities paralegals must be proficient in computer software programs such as Microsoft Word, Excel and PowerPoint. It is also helpful to have knowledge of legal research databases such as LexisNexis and Westlaw.
Look for Employment. You can look for employment opportunities at law firms, corporate legal departments or government agencies. You can also search online job boards or contact a local legal staffing agency.

As a securities paralegal, staying ahead and efficient requires staying organized, being proactive and keeping up with industry trends. When a paralegal is organized and keeps track of their tasks, they can plan ahead and stay one step ahead of deadlines. Being proactive means assessing the current situation and anticipating future needs so that they can take action to prevent any potential issues.

Keeping up with industry trends is also important, as it allows the paralegal to identify any changes that may have an impact on their work. This can help them stay current with regulations and make sure that they are always up to date with the latest information. By staying organized, being proactive, and keeping up with industry trends, securities paralegals can ensure that their work is efficient and ahead of schedule.

You may want to check Litigation Paralegal, Tax Paralegal, and Corporate Paralegal for alternative.

Job Description

Prepare legal documents such as corporate resolutions, subscription agreements, and other legal documents related to securities transactions.
Review and interpret legal documents, including prospectuses, offering memoranda, and other legal documents related to securities transactions.
Draft and review company formation documents, including articles of incorporation, bylaws, and other corporate governance documents.
Prepare SEC filings and other documents related to registration of securities with the Securities and Exchange Commission.
Research and analyze complex securities laws and regulations.
Assist with due diligence investigations of potential investments.
Advise clients on disclosure requirements for public offerings and private placements.
Monitor and track corporate changes, such as mergers, acquisitions, reorganizations, and other corporate transactions.
Assist with the preparation of offering documents for public and private securities offerings.
Assist with the preparation of proxy statements, annual reports, and other SEC filings.
Manage communication with clients and other third parties during a securities transaction.
Negotiate terms with brokers, dealers, and other market participants in connection with securities transactions.
Monitor compliance with applicable securities laws and regulations.
Perform due diligence on proposed investments to ensure compliance with applicable laws and regulations.
Maintain accurate records and files related to ongoing securities transactions.

Skills and Competencies to Have

Knowledge of federal, state and local securities laws.
Familiarity with the securities registration process, including filing Forms S-1 and 10-K.
Ability to draft and review disclosure documents, such as prospectuses and registration statements.
Understanding of securities issuance, offering and trading regulations.
Proficiency in due diligence processes and procedures.
Familiarity with the rules governing private placements, public offerings and mergers and acquisitions transactions.
Ability to draft legal memoranda, letters and other documents related to the securities laws and regulations.
Ability to analyze and interpret financial statements.
Ability to research legal issues related to securities law.
Knowledge of corporate governance matters, including board of director meetings and shareholder meetings.

The ability to effectively communicate is an absolutely essential skill for any securities paralegal. Being able to effectively communicate verbally and in writing is critical for a securities paralegal, as they need to be able to interact with clients, attorneys, and other stakeholders. being able to listen carefully and understand the legal and financial implications of different documents is a must in order to properly assist the attorneys they are working with.

Furthermore, having the ability to research complex legal issues and organize complex data into a cohesive format is a vital skill for any securities paralegal. Finally, the ability to stay organized, multitask, and meet deadlines are all necessary skills in order to ensure that the work of the securities paralegal is completed accurately and on time. All of these skills are essential for a successful career as a securities paralegal.

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Frequent Interview Questions

What experience do you have working with securities laws and regulations?
How would you handle a situation where a client's compliance with securities regulations is in question?
What steps do you take to ensure the accuracy of contracts and other documents related to securities law?
Describe a time when you had to manage multiple projects related to securities law.
What strategies do you use to stay organized and up to date on changes in securities regulations?
How do you develop and maintain relationships with clients, attorneys, and other legal professionals?
How do you handle difficult clients or situations involving securities law?
What processes do you use to ensure that all document deadlines are met on time?
In what ways have you contributed to the success of a securities law team?
How do you stay current on the latest developments in securities regulations?

Common Tools in Industry

Word Processing Software. A program used to create, edit, and format documents (e. g. Microsoft Word).
Document Management Software. A program used to store, organize, and track electronic documents (e. g. CaseLines).
Database Software. A program used to organize and store data (e. g. Microsoft Access).
Spreadsheet Software. A program used to create spreadsheets and analyze data (e. g. Microsoft Excel).
Legal Research Software. A program used to research legal precedents and statutes (e. g. LexisNexis).
Case Management Software. A program used to manage case information and documents (e. g. Clio).
Practice Management Software. A program used to manage client information, documents, and billing (e. g. Rocket Matter).
Electronic Filing Software. A program used to file documents electronically with courts (e. g. FileTime).

Professional Organizations to Know

International Securities Law Association
American Bar Association
National Association of Security and Exchange Commission Alumni
Association of Corporate Counsel
International Capital Market Association
American Corporate Counsel Association
National Business Law Association
Securities Industry and Financial Markets Association
Financial Services Institute
Investment Company Institute

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Common Important Terms

Securities Regulation. A set of laws, regulations and guidelines that govern the issuance, trading and reporting of securities.
Investment Adviser. An individual or firm that provides advice to clients about investments, including stocks, bonds, mutual funds and derivatives.
Broker-Dealer. A business entity that buys and sells securities on behalf of its clients.
Private Placement Memorandum (PPM). A legal document that discloses the details of a private offering or sale of securities to investors.
Registration Statement. A document filed with the Securities and Exchange Commission (SEC) by a company that is offering securities for sale to the public.
Blue Sky Law. State laws that regulate the offering and sale of securities within the state.
Disclosure Document. A legal document required by the SEC that contains all of the information a potential investor needs to make an informed decision when considering an investment.
Insider Trading. The illegal practice of trading on material, non-public information about a company or security.
Merger. The process of two companies combining into one entity.
Proxy Statement. A legal document filed with the SEC by a public company to solicit shareholder approval for certain corporate actions such as mergers or acquisitions.

Frequently Asked Questions

What is a Securities Paralegal?

A Securities Paralegal is a paralegal who specializes in securities law, which regulates the sale and trading of stocks, bonds, and other investments.

What tasks do Securities Paralegals perform?

Securities Paralegals typically perform tasks such as researching laws and regulations, assisting attorneys with securities-related litigation and transactions, and preparing documents for filing with the Securities and Exchange Commission (SEC).

What qualifications are needed to be a Securities Paralegal?

To become a Securities Paralegal, an individual must have a bachelor's degree in paralegal studies, or a related field such as business or finance. Additionally, knowledge of securities law, strong communication and research skills, and experience with legal software programs may be helpful in this role.

What certifications are available for Securities Paralegals?

Several certifications are available for Securities Paralegals, including the Certified Paralegal (CP) through the National Association of Legal Assistants (NALA), the Certified Legal Assistant (CLA) through the National Federation of Paralegal Associations (NFPA), and the Accredited Legal Professional (ALP) through the Institute of Certified Paralegals (ICP).

What is the job outlook for Securities Paralegals?

According to the Bureau of Labor Statistics (BLS), the job outlook for paralegals and legal assistants is projected to grow 8% from 2019-2029, which is faster than average. Additionally, there is expected to be increased demand for paralegals who specialize in securities law as financial markets continue to grow.