California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 11 - Securities Depositories › Section 1805.210 - Books and Records of Securities Depositories

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Every licensed securities depository
				shall make and keep current the records relating to its business:
(1) Ledgers (or other records) reflecting all
				assets, liabilities, and capital, and the income and expenses of the
				licensee.
(2) Journals (or other
				records of original entry) containing an itemized daily record of all receipts,
				deliveries, transfers, pledges and loans of securities (including names of
				issuers, certificate numbers and CUSIP (Committee on Uniform Security
				Identification Procedures) all receipts and disbursements of cash and all other
				debits and credits . Such records shall show the account for which each
				receipt, delivery, transfer, pledge or loan of securities was effected; the
				name and amount of securities; the CUSIP numbers; the number of units and
				aggregate market value (if any); the date of receipt, delivery, transfer,
				pledge or loan of securities; and the name or other designation of the person
				from whom received or to whom delivered, transferred, pledged or
				loaned.
(3) Ledger accounts (or
				other records) itemizing separately for each account of every depositor,
				customer or pledgee all receipts, deliveries, transfers, for such account and
				all other debits and credits to such an account, on a daily basis.
(4) Ledgers (or other records) reflecting
				daily the following:
(i) Securities in
				transfer, showing from whom transferred and to whom to be delivered,
				transferred, pledged or loaned;
(ii) Dividends received and the account for
				whom received;
(iii) Dividends paid
				or transferred and the account to whom paid or delivered.
(iv) Securities pledged, loaned or held for
				the account or benefit of another than the depositor;
(v) Substitution of securities held in
				sub-clause (iv) of this clause.
(5) A securities ledger or position record
				for each security, on a daily basis, showing the number or unit held and
				whether for the depositor's account, pledge, loan or otherwise, including any
				security count difference, classified by the date of discovery of the
				difference or date of physical count.
(6) A memorandum (or other record) of each
				order or instruction received or for the receipt, delivery, transfer, pledge,
				loan or otherwise of securities whether completed or incompleted. Such
				memorandum shall show all the terms and conditions of the order or
				instructions, and any modifications or cancellations thereto.
(7) A record of all receipts, deliveries,
				transfers, pledges or loans of securities and all other notices or advice items
				for the account of each depositor, customer, or pledgee.
(8) A record of the proof of money balances
				of all ledger accounts in the form of a trial balance, prepared at least
				monthly. Such trial balances shall be prepared on a basis consistent with the
				financial statement filed or required to be filed, pursuant to subdivision (a)
				of Section
				30213 of
				the Financial Code and Section
				1805.213 of these rules.
(9) A questionnaire or application for
				employment executed by each employee of the securities depository, which
				questionnaire or application shall be approved in writing by an authorized
				officer of the securities depository and shall contain at least the following
				information with respect to each such person:
(i) His name, address, social security
				number, and the starting date of his employment with the securities
				depository.
(ii) His/her date and
				place of birth.
(iii) A complete,
				consecutive statement of all his/her business connections and employments for
				at least the preceding 10 years, including his/her reason for leaving each
				employment.
(iv) A record of any
				arrests, indictments or convictions for any felony or any misdemeanor, except
				minor traffic offenses, of which he/she has been the subject.
(v) A record of any disciplinary action
				taken, or sanction imposed upon him/ her by any federal or state agency, or by
				any national securities exchange, national securities association or any
				commodity exchange regulated by the federal or by any state
				government.
(vi) A record of any
				civil actions brought against him/her based upon conduct showing moral
				turpitude.
(vii) A record of any
				permanent or temporary injunction entered against him/her or against any firm
				with which he/she was associated in any capacity at the time such injunction
				was entered.
(viii) A record of any
				other name or names by which he/ she has been known or which he/she has been
				known or which he/she used.
(10) Copies of all applications and
				amendments thereto, and of all reports, filed with the Commissioner pursuant to
				the provisions of the Securities Depository Law.
(11) A record of all holders of its capital
				stock, together with such information as is necessary to demonstrate compliance
				with the provisions of Section
				30201 of
				the Financial Code.