Source: https://dbo.ca.gov/broker-dealers-state-investment-advisers-and-sec-investment-advisers/
Timestamp: 2020-01-19 21:55:44
Document Index: 686424323

Matched Legal Cases: ['art 1', 'art 2', 'art 1', 'art 2', 'art 2', 'art 2']

Broker-Dealers, State Investment Advisers and SEC Investment Advisers | The Department of Business Oversight
Broker-Dealers, State Investment Advisers and SEC Investment Advisers
The Broker-Dealer and Investment Adviser Division (BDIA) is an operational division under the California Corporations Commissioner. BDIA is headed by a Deputy Commissioner and is responsible for the licensing and regulation of broker-dealers, broker-dealer agents, investment advisers, and investment adviser representatives pursuant to the Corporate Securities Law of 1968.
BDIA reviews applications for licensure under the California Corporations Code Sections 25210 and 25230 and, if all requirements are met, applicants receive a registration approval. Once an applicant is approved, it is included in the regulatory examination cycle for that industry.
BDIA has regulatory examination authority under California Corporations Code Section 25241 to conduct reasonable periodic, special, or other examinations by the commissioner, of its broker-dealer and investment adviser licensees for the protection of investors and in the public interest. Examinations are conducted at the licensed location. BDIA may also conduct a regulatory examination for cause at any time.
Violations of the laws (California Financial Code , California Corporations Code and the California Code of Regulations) are handled by the Department’s Enforcement Division (ENF). BDIA Division refers violations of the laws and enforcement matters to ENF for appropriate administrative, civil or criminal action.
Broker-Dealer and Investment Adviser Division
Phone: 916-322-6270
Fax: 916-445-7193
IAAPP@dbo.ca.gov
(Application related inquiries)
IAAMEND@dbo.ca.gov
(Examination and Annual Filing Inquiries)
Check out your Broker
Check out your Investment Adviser
11/18/2019 – DBO 2020 Fee Announcement
Registration renewal fees for each registered Broker-Dealer Agent (“Agent”) and each registered Investment Adviser Representative (“IAR”) has increased from $25 to $35 for the 2020 renewal season. This new fee will be reflected in the preliminary renewal statement which becomes available on November 11, 2019 through E-Bill on FINRA-Annual Renewal page.
11/18/2019 – NASAA 2020 Fee Announcement
On October 30, 2019, The North American Securities Administrators Association (NASAA) announced the continued waiver of Investment Adviser Registration Depository (IARD) system fees for state-registered investment adviser firms. NASAA also announced a $5 increase in the IARD system fee for state registered investment adviser representatives and the Electronic Filing Depository (EFD) system use fee for Form D, Rule 506 and Form NF-UIT filings, effective January 1, 2020.
10/09/19 – 2020 Renewal Reminder
2020 Renewal Program Calendar for Broker Dealers and Investment Advisers
Monday 11/11/19 – PRELIMINARY Renewal Statements are available through E-Bill on FINRA – Annual Renewal page.
Monday 12/1/19 – DBO Reminder Email will be sent to all Licensees to renew their license for the calendar year 2020. Licensees should ensure they have an active designated email address on file. Please refer to the “News” section on the Broker-Dealer Investment Adviser page for more information about the designated email requirements.
Monday 12/16/19 – RENEWAL PAYMENT DUE DATE. This is the DEADLINE for receipt of Preliminary Renewal Statement payments. Review the Renewal Program Payment Options for detailed information. FINRA recommends using E-Bill to pay your Preliminary Statement. If you use other means, submit your payment with additional time to sufficiently allow for mail delivery and/or payment processing to post to your Renewal Account by the deadline. FINRA-registered firms that do not have payment posted by the deadline may be assessed a Renewal Late Fee.
Thursday 12/26/19 – Last Day to submit form filings prior to year-end. Web CRD and IARD are available form 5 AM until 6 PM Eastern Time (ET).
Friday 12/27/19 – Web CRD and IARD are unavailable due to FINRA statement and renewals processing.
Saturday 12/28/19 – 12/31/19 – Web CRD and IARD are available for QUERY-only and the creation of “Pending” filings.
8/23/19 – Designated Email Address Requirement for Investment Advisers
Effective January 1, 2019, California Financial Code section 331.5 (Authority: SB 1361, Bradford, Chapter 699, Statutes of 2018) requires licensees to establish and maintain an email address for receiving communications and documents from the DBO. Licensees are required by law to notify the DBO before changing the designated email address and provide the DBO with the new designated email address. To satisfy these requirements, Investment Advisers must report a valid designated email address on the ADV Forms, Part 1A (Item 1J) and Part 2A (Item 1). Changes to the designated email address must be reported directly through the FINRA/IARD system by updating the ADV Forms, Part 1A and Part 2A.
The designated email address must be able to receive attachments.
If licensees fail to comply with the designated email address requirements, the licensee may be subject to a fine of up to fifty dollars ($50) per day, not to exceed one thousand dollars ($1,000) in the aggregate.
8/23/19 – Designated Email Address Requirement for Broker-Dealers
Effective January 1, 2019, California Financial Code section 331.5 (Authority: SB 1361, Bradford, Chapter 699, Statutes of 2018) requires licensees to establish and maintain an email address for receiving communications and documents from the DBO. Licensees are required by law to notify the DBO before changing the designated email address and provide the DBO with the new designated email address. Broker-Dealers must create a DBO Self-Service Portal account on the DBO website in order to report a new designated email address. When updating designated email address, Broker-Dealers must first notify the DBO by sending an email to ASK.DBO@dbo.ca.gov and then update the designated email address through the DBO Self-Service Portal account.
The designated email address:
Must not be an email of any individual employee.
Must be able to receive attachments.
01/15/19 – Changes to FINRA Examination (PDF)
Broker-Dealer Information
About Broker-Dealers and Broker Dealer Agents
Broker-Dealer Applications/Forms
Requirements after a Broker-Dealer Certificate has been issued
Finders form (AB 667) (PDF)
Designated Email Address Requirement for Broker-Dealers
Investment Adviser Information
What is a State Licensed Investment Adviser
What is a Securities and Exchange Commission(SEC) Registered Investment Adviser
How to Register As A California Registered Investment Adviser (PDF)
Registration and Examination compliance FAQs (PDF)
Preparing for a Regulatory Examination (Video-22 min)
Investment Adviser Application – Did you Know?
Things you should know when filing your application for an investment adviser certificate. You should carefully review this page. By filing the proper documents, you will help us to efficiently process your application.
Investment Adviser – Check List
Investment Adviser Minimum Financial and Reporting Requirements
Investment Adviser Post-Effective Requirements – State Licensed
Investment Adviser Applications & Forms
Information regarding Part 2 of Form ADV
Dodd-Frank Wall Street Reform and Consumer Protection Act Information
Designated Email Address Requirement for Investment Advisers
Investment Adviser Representative Information
What is a State Licensed Investment Adviser Representative?
What is a SEC Registered Investment Adviser Representative?
For information regarding broker-dealers, broker-dealer agents and investment advisers call the Department’s Consumer Services Office at (866) 275-2677.
Check the background of your broker or investment professional by using Financial Industry Regulatory Authority (FINRA) BrokerCheck. FINRA is also a resource for Investor Alerts and investor education and tools
Check out your commodity broker. A free service from the National Futures Association’s Background Affiliation Status Information Center (BASIC). Whether you are an investor thinking about opening a futures account or an NFA Member contemplating a new business relationship, BASIC can be a valuable resource for you. BASIC contains Commodity Futures Trading Commission (CFTC) registration and NFA membership information and futures-related regulatory and non-regulatory actions contributed by NFA, the CFTC and the U.S. futures exchanges.
Information regarding state registered investment advisers, SEC registered investment advisers
Broker-Dealer Application/Forms
Note: Throughout our web pages, reference may be made to the Rules as found in Title 10, Chapter 3, California Code of Regulations (“CCR”).
For information concerning the CCR and accessing sections of the CCR referenced on these web pages, go to Assistance page.
Any person who intends to become a broker-dealer in California may apply for a broker-dealer certificate by filing an application. If you are a member of the Financial Industry Regulatory Authority (“FINRA”), the application should be filed directly with the Central Registration Depository (“CRD”). If you are not a member of FINRA , the application should be filed directly with the Department of Business Oversight. Please review the Information to Assist Persons Applying for a Broker-Dealer Certificate and Instructions for Completing and Filing Form BD in California by Broker-Dealers Not Filing by Notification. Once you have reviewed this information and have any questions concerning the application process, please feel free to contact us at 1-866-275-2677.
The table below contains a list Broker-Dealer Application/Forms
250.61 Statement of Citizenship, Alienage, and Immigration Status for Application of Department of Business Oversight License or Certificate PDF
260.165 Consent to Service of Process PDF
260.241.2(b) Verification Form Pursuant to California Code of Regulations Rule 260.241.2(B) PDF
ADM 510 Index of Fees, Fines and Penalties PDF
DBO 25206.1 Statement of Information for Finder PDF
DBO 260.211.1 Application by Notification Pursuant to Corporations Code Section 25211(b) for Broker-Dealer Certificate PDF
DBO-260.237.2 Minimum Financial Requirement Worksheet PDF
DBO-BDIA 8018 Request for Live Scan Services PDF
DBO-QR 500.261 Customer Authorization of Disclosure of Financial Records PDF
Form BD Uniform Application for Broker-Dealer Registration PDF
Form BDW Uniform Request for Broker-Dealer Withdrawal PDF
Form U4 Uniform Application for Securities Industry Regulation or Transfer PDF
Form U5 Uniform Termination Notice for Securities Industry Registration PDF
Electronic Versions of Broker-Dealer forms available from the FINRA
DBO-LE-500.262 Customer Authorization of Disclosure of Financial Records PDF
Securities and Exchange Commission(SEC) Registered Investment Adviser
Any person registered with the Securities and Exchange Commission (“SEC”) as an investment adviser and who conducts business in California for more than five clients should file a notice with the Department of Business Oversight. This notice is to be filed within thirty-(30) days of conducting business in California. Please review the Information to Assist Persons Making a Notice Filing for instructions and additional information in regards to making a notice filing in California.
Note: Reference may be made to the Rules as found in Title 10, Chapter 3, California Code of Regulations (“CCR”). For information concerning the CCR and accessing sections of the CCR referenced on these web pages, click assistance page.
Investment Adviser Applications/Forms
Note: Throughout our web pages below, reference may be made to the Rules as found in Title 10, Chapter 3, California Code of Regulations (“CCR”). For information concerning the CCR and accessing sections of the CCR referenced on these web pages, click assistance page.
Any person who wants to become an investment adviser in California may apply for an investment adviser certificate by filing an application. The forms and instructions for filing an application are found below. To begin, please review the Information to Assist Persons Applying for an Investment Adviser Certificate and Instructions for Completing and Filing Application for Investment Adviser Certificate on Form ADV. Once you have this information and have any questions concerning the application process, please feel free to contact us at 1-866-275-2677.
Form ADV — Uniform Application for Investment Adviser Registration Form ADV – Electronic Version
* Form ADV must be filed electronically with the Investment Adviser Registration Depository (“IARD”). To file electronically with IARD, you will need to obtain, complete and return the entitlement forms. These forms may be found on the IARD web site at www.iard.com. For further information, please visit the IARD web site.
Form ADV Part 2 — Uniform Requirements for the Investment Adviser Brochure and Brochure Supplements (PDF)
Form U4 — Uniform Application for Securities Industry Regulation or Transfer (PDF)
Form U5 — Uniform Termination Notice for Securities Industry Registration (PDF)
Form U10 — Test Enrollment Services System (TESS) went live April 2017 as a replacement for the Form U10 process. Individuals who are not registered in CRD enroll for FINRA, NASAA, MSRB, NFA, FDIC exams and CE sessions via TESS.
250.61 — Statement of Citizenship, Alienage, and Immigration Status for Application of Department of Business Oversight License or Certificate (PDF)
260.241.2(B) — Verification Form Pursuant to California Code of Regulations Rule 260.241.2(B) (PDF)
260.165 — Consent to Service of Process (PDF)
260.237.2 — Minimum Financial Requirement Worksheet (PDF)
QR 500.261 — Customer Authorization (PDF)
Electronic Versions of Investment Adviser forms available from the SEC
ADM 510 — Index of Fees, Fines and Penalties (PDF)
SB 496 Financial Abuse Report
Broker-Dealers and Investment Advisers are Mandatory Reporters of Elder Abuse
Effective January 1, 2020, SB 496 makes broker-dealers and investment advisers mandated reporters of suspected financial abuse of an elder or dependent adult. In addition, the bill authorizes broker-dealers and investment advisers to notify a previously designated trusted contact of the financial abuse, and temporarily delay a requested disbursement from the victim’s account.
The bill also requires broker dealers and investment advisers to notify the Department of Business Oversight (DBO), among other entities, of the suspected financial abuse of elders and notify the DBO of delayed disbursements.
Report suspected elder abuse to the DBO at SB496ReportsBDIA@dbo.ca.gov
Contact the DBO by telephone at 916-322-6270
Here is a link to the new full bill: SB 496, Chapter 351, Statutes of 2019.
Annual Reports on Broker-Dealer/Investment Adviser Program
01/10/19 – Annual Report on Broker-Dealer/Investment Adviser Program – 2019 (PDF)
01/18/18 – Annual Report on Broker-Dealer/Investment Adviser Program – 2018 (PDF)
01/23/17 – Annual Report on Broker-Dealer/Investment Adviser Program – 2017 (PDF)
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Last updated: Jan 16, 2020 @ 9:38 am