reglab/statecodes huggingface dataset:
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.204.4 - Commodity Contract Sales. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
					 section filed 10-1-73 as an emergency; effective upon filing (Register 73, No.
					 40).
2. Certificate of Compliance filed 12-28-73 (Register 73, No.
					 52).
3. Amendment filed 1-22-75; effective thirtieth day thereafter
					 (Register 75, No. 4).
3. Amendment filed 1-22-75; effective
					 thirtieth day thereafter (Register 75, No. 4).
4. Repealer filed
					 11-29-79 as an emergency; designated effective 1-1-80. Certificate of
					 Compliance included (Register 79, No. 48).
Note: Authority cited: Section
						25610,
						Corporations Code. Reference: Section
						25204,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.204.5 - Merger and Acquisition Specialists

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An exemption from the provisions of Section
					 25210 of the Code is hereby
					 granted, as being necessary and appropriate in the public interest and for the
					 protection of investors, to any person who effects transactions in securities
					 in this state only in connection with mergers, consolidations or purchases of
					 corporate assets, and who does not receive, transmit, or hold for customers any
					 funds or securities in connection with such transactions.
1. New
					 section filed 3-1-74; effective thirtieth day thereafter (Register 74, No.
					 9).
2. Editorial correction of NOTE filed 4-6-83 (Register 83, No.
					 15).
Note: Authority cited: Sections
						25204
						and
						25610,
						Corporations Code. Reference: Section
						25204,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.204.6 - Licensed Lenders

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An exemption from the provisions of Section
					 25210 of the Code is hereby
					 granted, as being necessary and appropriate in the public interest and for the
					 protection of investors, to:
(a) Any
				  person licensed as a finance lender under the California Finance Lenders Law
				  (Division 9, commencing with Section
				  22000 of
				  the Financial Code) when acting under the authority of that license, or
				  licensed as an industrial loan company doing business under the Industrial Loan
				  Law (Division 7, commencing with Section
				  18000 of
				  the Financial Code), when engaged in transactions in a series of notes secured
				  by interests in the same real property, or in undivided interests in a note
				  secured by real property, pursuant to a qualification under Section
				  25110, Section
				  25120 or Section
				  25130 of the Code, or pursuant to
				  the exemption contained in Section
				  25102(e) or
				  Section 25102(i) of the
				  Code, other than an offering which is made pursuant to a registration under the
				  Securities Act of 1933 or a Regulation A exemption under that act
				  (17 CFR
				  230.231 et. seq.).
(b) A person licensed as a business and
				  industrial development corporation ("BIDCO") under the Business and Industrial
				  Development Corporations Law (Division 15, commencing with Section
				  31000 of
				  the Financial Code) when engaged in the sale of notes, and guarantees thereof
				  by the United States Small Business Administration or other federal
				  governmental agency, arising from loans to businesses in this state, made by a
				  licensed BIDCO pursuant to the requirements of the Business and Industrial
				  Development Corporation Law and regulations promulgated thereunder.
1. New
					 section filed 8-27-81 as an emergency; effective upon filing (Register 81, No.
					 37).
2. Order of Repeal of 8-27-81 emergency order filed 9-4-81 by
					 OAL pursuant to Government Code Section
					 11349.6
					 (Register 81, No. 37).
3. New section filed 6-24-82; effective
					 thirtieth day thereafter (Register 82, No. 26).
4. Amendment filed
					 1-10-85; effective thirtieth day thereafter (Register 85, No. 2).
5.
					 Amendment filed 1-31-91; operative 3-2-91 (Register 91, No. 8).
6.
					 Amendment filed 8-6-98; operative 9-5-98 (Register 98, No.
					 32).
Note: Authority cited: Sections
						25204
						and
						25610,
						Corporations Code. Reference: Section
						25204,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.204.7 - State Teachers' Retirement System

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Exempt from the provisions of Sections
					 25210 and
					 25230 of the Code are any
					 individuals who pursuant to Section
					 22205.2 of
					 the Education Code contract to perform investment management or advisory
					 services only for the State Teachers' Retirement System; provided, that the
					 securities transactions are effected by or through a broker-dealer who is
					 licensed under Section
					 25210 of the Code or exempt from
					 licensure under Section
					 25200 of the
					 Code.
1. New
					 section filed 11-20-87; operative 12-20-87 (Register 87, No.
					 48).
Note: Authority cited: Sections
						25204
						and
						25610,
						Corporations Code. Reference: Section
						25204,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.204.8 - Limited Exemption for Commodity Trading Advisers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Commodity trading advisers registered under the federal
					 Commodity Exchange Act, as amended, are exempt from the provisions of Section
					 25230 of the Code when advising or
					 exercising trading discretion, or both advising and trading, with respect to
					 foreign currency options listed and traded exclusively on the Philadelphia
					 Stock Exchange.
1. New
					 section filed 8-3-95; operative 9-2-95 (Register 95, No.
					 31).
Note: Authority cited: Sections
						25204
						and
						25610,
						Corporations Code. Reference: Sections
						25204
						and
						25230,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.204.10 - Certain Canadian Broker-Dealers; Agents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A broker-dealer that is resident in
				  Canada and has no office or other physical presence in this state is not
				  subject to the certification requirements of Section
				  25210 and may effect transactions
				  in Canadian securities in this state; provided, the broker-dealer is effecting
				  transactions in securities with or for, or inducing or attempting to induce the
				  purchase or sale of any security by:
(1) a
				  Canadian resident who is temporarily resident in or visiting this state, with
				  whom the Canadian broker-dealer had a bona fide broker-dealer-client
				  relationship before the Canadian resident entered the United States;
				  or
(2) a "Canadian Retirement
				  Account", as defined by 17
				  CFR 230.237(a)(2) or
				  17 CFR
				  7d-2(a)(2),
				  respectively, of which the holder or contributor thereto is a permanent or
				  temporary resident or visitor in this state.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.204.11 - Pacific Exchange, Inc. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
					 section filed 5-24-2001; operative 6-23-2001 (Register 2001, No.
					 21).
2. Repealer filed 11-10-2009; operative 12-10-2009 (Register
					 2009, No. 46).
Note: Authority cited: Sections
						25204
						and
						25610,
						Corporations Code. Reference: Sections
						25204
						and
						25610,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.204.12 - Capital Access Company

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An investment adviser to a capital access company licensed
					 under the Capital Access Company Law (Corporations Code Section
					 28000 et
					 seq.) is exempt from the certification requirement of Section
					 25230 of the Code as not being
					 necessary or appropriate in the public interest or for the protection of
					 investors when (i) making recommendations with respect to the investment of
					 funds of the capital access company as provided for in subdivision (e) of
					 Section 28152 of the Code for that company
					 and (ii) pursuant to an approved contract as required by Section
					 28212 of the
					 Code.
1. New
					 section filed 4-2-2001; operative 5-2-2001 (Register 2001, No.
					 14).
Note: Authority cited: Sections
						25204
						and
						25610,
						Corporations Code. Reference: Sections
						25204
						and
						25230,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.211 - Application for Broker-Dealer Certificate

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For any broker-dealer that participates
				  in the Central Registration Depository ("CRD"), the application for a
				  certificate as a broker-dealer shall be filed as follows:
(1) INITIAL APPLICATION: The application for
				  a certificate as a broker-dealer pursuant to subsection (a) of Section
				  25211 of the Code and an amendment
				  to such application pursuant to Section
				  260.241.4 shall be filed upon Form
				  BD (Uniform Application for Broker-Dealer Registration,
				  17 C.F.R. §
												249.501) in accordance with the form
				  instructions and by filing the form with CRD for transmission to the
				  Commissioner.
(A) An applicant that files an
				  application through CRD shall complete a Customer Authorization of Disclosure
				  of Financial Records, set forth in Section
				  260.231(i) of
				  these rules, and maintain the form in the applicant's books and records as
				  provided in Section
				  25241 of the Code. The applicant
				  shall provide the form to the Commissioner upon request.
(B) Upon reviewing the application, the
				  Commissioner may require the applicant to submit the following information:
1. A balance sheet as of a date within 45
				  days prior to the filing of the application, which need not be audited. If the
				  balance sheet is not audited, the applicant shall file, in addition, an audited
				  balance sheet as of the end of applicant's last fiscal year.
2. A calculation of the net capital and the
				  ratio of net capital to aggregate indebtedness of the applicant, in accordance
				  with Section
				  260.216.12 of these rules, as of
				  the same date as the balance sheets submitted under paragraph (B)1.
				  above.
3. Copies of all currently
				  effective subordination agreements. If any are substantially similar, attach
				  one copy of the most standard form(s) and a schedule(s) showing the name and
				  address of each lender and the dollar value of the subordinated items on each
				  agreement.
(C) The
				  Commissioner may request additional information, documentation or detail
				  pertaining to Form BD (Uniform Application for Broker-Dealer Registration,
				  17 C.F.R. §
													249.501) to be filed directly with the
				  Commissioner.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.211.1 - Application for License by Notification

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An application for licensing by
				  notification pursuant to Section
				  25211(b)
				  of the Code shall be in the following form and contain the information therein
				  specified:
Mail to:
Fee: $300
State of California
File No.
Department of Business
							 Oversight
Date of Application
1515 K Street, Suite 200
Sacramento, CA 95814-4052
DEPARTMENT OF BUSINESS OVERSIGHT STATE OF CALIFORNIA
					 APPLICATION BY NOTIFICATION PURSUANT TO CORPORATIONS CODE SEC.
					 25211(b) FOR
					 BROKER-DEALER CERTIFICATE
(Only for Use in Connection with Applications and
					 Amendments to Applications for Broker-Dealer Certificate Pursuant to Section
					 25211(b),
					 Corporations Code (Application by Notification), and Section
					 260.241.4, Title 10, California
					 Code of Regulations.)
1.
Date of
							 Notice_____________________________________________
2.
[] Original Notice [] Amended
							 Notice
3.
Name of Broker-Dealer
Address of
							 Principal Office
______________________________________________________________
4.
Name and address of officer
							 or partner of the broker-dealer who is to receive compliance and information
							 communications from the Department and who is responsible for disseminating the
							 same within the broker-dealer's organization.
Name___________________________
___________________________Title
Address___________________________
___________________________Telephone ( )
___________________________
(See Corporations Code Section
							 25245)
5. The
				  following representations are made to the Commissioner of Business Oversight by
				  the broker-dealer.
a. The broker-dealer has a
				  currently effective registration as a broker-dealer under the Securities
				  Exchange Act of 1934 (15 USC
				  78a et seq.).
b. The broker-dealer is a member in good
				  standing of the self-regulatory organizations checked:
[] NYSE
[] NYSE AMEX
[] NYSE
							 Arca
[] FINRA
c.
				  Check the applicable box:
[] (1) The broker-dealer has never had a certificate as a
					 broker-dealer, investment adviser or agent revoked, or an application for such
					 a certificate denied, under the Corporate Securities Law of 1968 or any
					 predecessor statute.
[] (2) The Commissioner has by order waived the denial or
					 revocation of a certificate as a broker-dealer, investment adviser or agent
					 heretofore issued to the broker-dealer.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.211.2 - Expiration of Broker-Dealer Certificates

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A general license as a broker-dealer pursuant to subsection
					 (a) or (b) of Section
					 25211 of the Code continues
					 effective until it is revoked or suspended by the Commissioner or surrendered
					 by the broker-dealer pursuant to Section
					 260.242.
1. Amendment
					 filed 9-2-77; effective thirtieth day thereafter (Register 77, No.
					 36).
2. Amendment filed 11-29-79 as an emergency; designated
					 effective 1-1-80. Certificate of Compliance included (Register 79, No.
					 48).
Note: Authority cited: Section
						25610,
						Corporations Code. Reference: Section
						25211,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.211.3 - Waiver of Denial or Revocation Under Section 25211(b) of the Code

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Pursuant to the provisions of Section
					 25211(b) of the
					 Code, the Commissioner waives in the public interest as a bar to issuance of a
					 broker-dealer certificate by notification any revocation of a broker-dealer
					 certificate pursuant to the provisions of subdivision (b) or (c)(1) of Section
					 25242 of the Code, or pursuant to
					 a provision of a predecessor statute of substantially identical import or
					 effect.
1. New
					 section filed 11-29-79 as an emergency; designated effective 1-1-80.
					 Certificate of Compliance included (Register 79, No. 48).
2.
					 Editorial correction of NOTE filed 4-6-83 (Register 83, No.
					 15).
Note: Authority cited: Sections
						25211(b),
						(c) and
						25610,
						Corporations Code. Reference: Section
						25211,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.211.4 - Exemption for Finders: Form

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An exemption from the provisions of
				  Section 25210 may be obtained from the
				  Commissioner of Business Oversight by a natural person, e.g., individual, who
				  meets the definition of a finder in subdivision (a) of Section
				  25206.1
				  of the Code.
(b) Initial Filing: An
				  individual seeking exemption as a finder pursuant to Section
				  25206.1 of the Code must file with
				  the Commissioner the Statement of Information form set forth in subsection (g)
				  of this section. The Commissioner may request additional information,
				  documentation or detail pertaining to the form to be filed with the
				  Department.
(c) Filing Fee: The fee
				  for filing an initial Statement of Information is $300.00 as prescribed in
				  Section 25206.1, subdivision (c)(2), of
				  the Code. The individual must remit the fee payable to the Department of
				  Business Oversight with the Statement of Information. The fee is not
				  refundable.
(d) Completion of
				  Filing: A Statement of Information is not considered filed until the required
				  fee and a completed form are received by the Commissioner.
(e) Amendment to the Statement of
				  Information: A finder must notify the Commissioner of any change to the
				  information in the initial Statement of Information filed with the Commissioner
				  by filing an amended Statement of Information in accordance with the form
				  instructions within 10 business days of the change.
(f) Exemption Ineligibility: The following
				  individuals are ineligible for the exemption as a finder under Section
				  25206.1 of the Code and if acting
				  as a broker-dealer as defined in Section
				  25004 or an agent as defined in
				  Section 25003 of the Code, must register
				  as a broker-dealer pursuant to Section
				  260.211 or an agent pursuant to
				  Section 260.210 of these rules, unless the
				  individual is otherwise exempt from Section
				  25210 of
				  the Code:
(1) An individual who fails to meet
				  the definition of a finder in Section
				  25206.1, subdivision (a), of the
				  Code,
(2) An individual who has
				  committed any of the acts or satisfied any of the circumstances described in
				  Section 25212 of the Code or Rule 506(d)
				  of Regulation D under the Securities Act of 1933 (17 C.F.R.
				  230.506(d)), or
(3) An individual who is registered as a
				  broker-dealer pursuant to Section
				  260.211 or an agent pursuant to
				  Section 260.210 of these
				  rules.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.211.6 - Notification of Withdrawal: Finder

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A finder must notify the Commissioner of Business Oversight
					 within 15 calendar days of the finder withdrawing from engaging in business
					 under the exemption by filing the Statement of Information form in subsection
					 (g) of Section
					 260.211.4 of these rules with the
					 Commissioner in accordance with the form instructions.
1. New
					 section filed 6-21-2017; operative 6-21-2017 pursuant to Government Code
					 section
					 11343.4(b)(3)
					 (Register 2017, No. 25).
Note: Authority cited: Section
						25206.1,
						Corporations Code. Reference: Section
						25206.1,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 8 - Licensing of Broker-Dealers and Agents › Section 260.211.7 - Maintenance of Records

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  A finder must make and keep the written agreement and any other records for the
				  time period specified in Section
				  25206.1, subdivision (f), of the
				  Code.
(b) The records must be
				  maintained at the location designated by the finder in the Statement of
				  Information.
(c) The records are
				  subject at any time to examination by the Commissioner of Business Oversight as
				  the Commissioner deems necessary or appropriate in the public interest or for
				  the protection of investors.
(d)
				  The prohibition against fraudulent and misleading acts in Section
				  25401 of the Code applies to a
				  finder.
1. New
					 section filed 6-21-2017; operative 6-21-2017 pursuant to Government Code
					 section
					 11343.4(b)(3)
					 (Register 2017, No. 25).
Note: Authority cited: Section
						25206.1,
						Corporations Code. Reference: Sections
						25206.1
						and
						25401,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216 - Fraud and Misrepresentation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The phrase "manipulative, deceptive, or other fraudulent
					 scheme, device, or contrivance," as used in subdivision (a) of Section
					 25216 of the Code is hereby
					 defined to include:
(a) Any act,
				  practice, or course of business which operates or would operate as a fraud or
				  deceit upon any person; and
(b) Any
				  untrue statement of a material fact and any omission to state a material fact
				  necessary in order to make the statements made, in the light of the
				  circumstances under which they are made, not misleading, if the person making
				  the statement or omission knows or has reasonable grounds to believe that it is
				  untrue or misleading.
1. Editorial
					 correction adding NOTE filed 4-6-83 (Register 83, No.
					 15).
Note: Authority cited: Sections
						25216(a)
						and
						25610,
						Corporations Code. Reference: Section
						25216,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.1 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
As used in any Section of these rules adopted pursuant to
					 subdivision (a) of Section
					 25216 of the Code:
(a) The term "customer" does not include a
				  broker-dealer.
(b) The phrase "the
				  completion of the transaction" means:
(1) In
				  the case of a customer who purchases a security through or from a
				  broker-dealer, except as provided in Clause (2) of this subsection, the time
				  when such customer pays the broker-dealer any part of the purchase price, or,
				  if payment is effected by a bookkeeping entry, the time when such bookkeeping
				  entry is made by the broker-dealer for any part of the purchase
				  price;
(2) In the case of a
				  customer who purchases a security through or from a broker-dealer and who makes
				  payment therefor prior to the time when payment is requested or notification is
				  given that payment is due, the time when such broker-dealer delivers the
				  security to or into the account of such customer;
(3) In the case of a customer who sells a
				  security through or to a broker-dealer, except as provided in Clause (4) of
				  this subsection, if the security is not in the custody of the broker-dealer at
				  the time of sale, the time when the security is delivered to the broker-dealer,
				  and if the security is in the custody of the broker-dealer at the time of sale,
				  the time when the broker-dealer transfers the security from the account of such
				  customer;
(4) In the case of a
				  customer who sells a security through or to a broker-dealer and who delivers
				  such security to such broker-dealer prior to the time when delivery is
				  requested or notification is given that delivery is due, the time when such
				  broker-dealer makes payment to or into the account of such
				  customer.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.3 - Disclosure of Control of Issuer

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The phrase "manipulative, deceptive, or other fraudulent
					 scheme, device, or contrivance," as used in subdivision (a) of Section
					 25216 of the Code, is hereby
					 defined to include any act of any broker-dealer or agent controlled by,
					 controlling,or under common control with, the issuer of any security, designed
					 to effect with or for the account of a customer any transaction in, or to
					 induce the purchase or sale by such customer of, such security unless such
					 broker-dealer or agent, before entering into any contract with or for such
					 customer for the purchase or sale of such security, discloses to such customer
					 the existence of such control, and unless such disclosure, if not made in
					 writing, is supplemented by the giving or sending of written disclosure at or
					 before the completion of the transaction.
1. Editorial
					 correction adding NOTE filed 4-6-83 (Register 83, No.
					 15).
Note: Authority cited: Sections
						25216(a)
						and
						25610,
						Corporations Code. Reference: Section
						25216,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.4 - Disclosure of Interest in Distributions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The phrase "manipulative, deceptive, or other fraudulent
					 scheme, device, or contrivance," as used in subdivision (a) of Section
					 25216 of the Code, is hereby
					 defined to include any act of any broker-dealer or agent designed to effect
					 with or for the account of a customer any transaction in, or to induce the
					 purchase or sale by such customer of, any security in the primary or secondary
					 distribution of which such broker-dealer or agent is participating or is
					 otherwise financially interested unless such broker-dealer or agent, at or
					 before the completion of each such transaction, notifies such customer of the
					 existence of such participation or interest.
1. Editorial
					 correction adding NOTE filed 4-6-83 (Register 83, No.
					 15).
Note: Authority cited: Sections
						25216(a)
						and
						25610,
						Corporations Code. Reference: Section
						25216,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.4.1 - Disclosure of Compensation from Financial Planning Activities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The phrase, "manipulative, deceptive, or other fraudulent
					 scheme or device, or contrivance," as used in subdivision (a) of Section
					 25216 of the Code, is hereby
					 defined to include the failure of any broker-dealer or agent to deliver to a
					 financial planning customer a notice in writing at the time and containing the
					 information required by Section
					 260.235.2 of these
					 rules.
1. New
					 section filed 12-20-85; effective thirtieth day thereafter (Register 85, No.
					 51).
Note: Authority cited: Section
						25610,
						Corporations Code. Reference: Section
						25216,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.5 - Churning

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The phrase "manipulative, deceptive, or other fraudulent
					 scheme, device, or contrivance," as used in subdivision (a) of Section
					 25216 of the Code, is hereby
					 defined to include any act of any broker-dealer or agent designed to effect
					 with or for any customer's account with respect to which such broker-dealer or
					 its agent or employee is vested with any discretionary power, or with respect
					 to which such person is able by reason of the customer's trust and confidence
					 to influence the volume and frequency of the trades, any transactions of
					 purchase or sale which are excessive in size or frequency in view of the
					 financial resources and character of such account.
1. Editorial
					 correction filed 11-9-82 (Register 82, No. 46).
Note: Authority cited: Sections
						25216(a)
						and
						25610,
						Corporations Code. Reference: Section
						25216,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.6 - Record of Transactions in Discretionary Accounts

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The phrase "manipulative, deceptive, or other fraudulent
					 scheme, device, or contrivance," as used in Subdivision (a) of Section
					 25216 of the Code, is hereby
					 defined to include any act of any broker-dealer or agent designed to effect
					 with or for any customer's account in respect to which such broker-dealer or
					 its agent or employee is vested with any discretionary power any transaction of
					 purchase or sale unless immediately after effecting such transaction such
					 broker-dealer or agent makes a record of such transaction which record includes
					 the name of such customer, the name, amount and price of the security, and the
					 date and time when such transaction took place.
1. Editorial
					 correction filed 11-9-82 (Register 82, No. 46).
Note: Authority cited: Sections
						25216(a)
						and
						25610,
						Corporations Code. Reference: Section
						25216,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.7 - Control of the Market

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The phrase "manipulative, deceptive, or other fraudulent
					 scheme, device, or contrivance," as used in subdivision (a) of Section
					 25216 of the Code, is hereby
					 defined to include any representation made to a customer by a broker-dealer or
					 agent that any security is being offered to such customer "at the market" or at
					 a price related to the market price unless such broker-dealer or agent knows or
					 has reasonable grounds to believe that a market for such security exists other
					 than that made, created, or controlled by such person, or by any person for
					 whom such person is acting or with whom such person is associated, or by any
					 person controlled by, controlling, or under common control with such person. A
					 written notification to a customer at or prior to the completion of the
					 transaction that a broker-dealer making the principal market in a security may
					 be in control of the market, by virtue of the fact that such person is the only
					 broker-dealer regularly appearing in the sheets or by reason of the volume of
					 such person's transactions in relation to the total volume of trading by all
					 broker-dealers, shall be sufficient to negative any representation which might
					 otherwise be implied that such person is selling "at the
					 market."
1. Editorial
					 correction filed 11-9-82 (Register 82, No. 46).
Note: Authority cited: Sections
						25216(a)
						and
						25610,
						Corporations Code. Reference: Section
						25216,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.8 - Hypothecation of Customers' Securities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) General Provisions. The phrase
				  "fraudulent, deceptive, or manipulative act or practice," as used in
				  subdivision (b) of Section
				  25216 of the Code, is hereby
				  defined to include the direct or indirect hypothecation by a broker-dealer, or
				  its arranging for or permitting, directly or indirectly, the continued
				  hypothecation of any securities carried for the account of any customer under
				  circumstances
(1) that will permit the
				  commingling of securities carried for the account of any such customer with
				  securities carried for the account of any other customer, without first
				  obtaining the written consent of each such customer to such
				  hypothecation;
(2) that will permit
				  such securities to be commingled with securities carried for the account of any
				  person other than a bona fide customer of such broker-dealer under a lien for a
				  loan made to such broker-dealer; or
(3) that will permit securities carried for
				  the account of customers to be hypothecated, or subjected to any lien or liens
				  or claim or claims of the pledgee or pledgees, for a sum which exceeds the
				  aggregate indebtedness of all customers in respect of securities carried for
				  their accounts; except that this clause is not violated by reason of an excess
				  arising on any day through the reduction of the aggregate indebtedness of
				  customers on such day, provided that funds or securities in an amount
				  sufficient to eliminate such excess are paid or placed in transfer to pledgees
				  for the purpose of reducing the sum of the liens or claims to which securities
				  carried for the account of customers are subjected as promptly as practicable
				  after such reduction occurs, but before the lapse of one-half hour after the
				  commencement of banking hours on the next banking day at the place where the
				  largest principal amount of loans of such broker-dealer are payable and, in any
				  event, before such broker-dealer on such day has obtained or increased any bank
				  loan collateralized by securities carried for the account of
				  customers.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.9 - Transmission or Maintenance of Payments Received in Connection with Underwritings

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
It shall constitute a "fraudulent, deceptive or
					 manipulative act or practice," as used in subdivision (b) of Section
					 25216 of the Code, for any
					 broker-dealer participating in any distribution of securities, other than a
					 firm commitment underwriting, to accept any part of the sale price of any
					 security being distributed unless:
(a)
				  the money or other consideration received is promptly transmitted to the
				  persons entitled thereto; or
(b) if
				  the distribution is being made on an "all-or-none" basis, or on any other basis
				  which contemplates that payment is not to be made to the person on whose behalf
				  the distribution is being made until some further event or contingency occurs,
(1) the money or other consideration received
				  is promptly deposited in a separate bank account, as agent or trustee for the
				  persons who have the beneficial interests therein, until the appropriate event
				  or contingency has occurred, and then the funds are promptly transmitted or
				  returned to the persons entitled thereto, or
(2) all such funds are promptly transmitted
				  to a bank which has agreed in writing to hold all such funds in escrow for the
				  persons who have the beneficial interests therein and to transmit or return
				  such funds directly to the persons entitled thereto when the appropriate event
				  or contingency has occurred.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.10 - Disclosure and Other Requirements when Extending or Arranging Credit in Certain Transactions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) It shall constitute a "fraudulent,
				  deceptive or manipulative act or practice," as used in subdivision (b) of
				  Section 25216 of the Code, for any
				  broker-dealer or agent to offer or sell any security to, or to attempt to
				  induce the purchase of any security by, any person, in connection with which
				  such broker-dealer or agent, directly or indirectly, offers to extend any
				  credit to or to arrange any loan for such person, or extends any credit to or
				  participates in arranging any loan for such person, unless such broker-dealer
				  or agent, before any purchase, loan or other related element of the transaction
				  is entered into:
(1) delivers to such person
				  a written statement setting forth the exact nature and extent of
(i) such person's obligations under the
				  particular loan arrangement, including, among other things, the specific
				  charges which such person will incur under such loan in each period during
				  which the loan may continue or be extended,
(ii) the risks and disadvantages which such
				  person will incur in the entire transaction, including the loan arrangement,
				  and
(iii) all commissions,
				  discounts, and other remuneration received and to be received, in connection
				  with the entire transaction including the loan arrangement, by the
				  broker-dealer or agent, by any person controlling, controlled by, or under
				  common control with the broker-dealer or agent, and by any other person
				  participating in the transaction; provided, however, that the broker-dealer or
				  agent shall be deemed to be in compliance with this subsection if the customer,
				  before any purchase, loan, or other related element of the transaction is
				  entered into in a manner legally binding upon the customer, receives a
				  statement from the lender, or receives a prospectus or offering circular from
				  the broker-dealer or agent, which statement, prospectus or offering circular
				  contains the information required by this subsection; and
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.11 - Identification of Quotations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) It shall constitute an attempt to induce
				  the purchase or sale of a security by making a "fictitious quotation," within
				  the meaning of subdivision (b) of Section
				  25216 of the Code, for any
				  broker-dealer to furnish or submit, directly or indirectly, any quotation for a
				  security to an inter-dealer-quotation-system unless:
(1) The inter-dealer-quotation-system is
				  informed, if such is the case, that the quotation is furnished or submitted
(i) by a correspondent broker-dealer for the
				  account or on behalf of another broker-dealer, and if so, the identity of such
				  other broker-dealer; and/or
(ii) in
				  furtherance of one or more other arrangements (including a joint account,
				  guarantee of profit, guarantee against loss, commission, mark-up, mark-down,
				  indication of interest and accommodation arrangement) between or among
				  broker-dealers, and if so, the identity of each broker-dealer participating in
				  any such arrangement or arrangements; provided, however, that th provisions of
				  this paragraph (ii) shall not apply if only one of the broker-dealers
				  participating in any such arrangement or arrangements furnishes or submits a
				  quotation with respect to the security to an
				  inter-dealer-quotation-system.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.12.1 - Reserve and Custody Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Every broker-dealer shall comply with the
				  requirements of 17 CFR
				  240.15c3-3 (Rule 15c3-3)
				  adopted by the Securities and Exchange Commission under the Securities Exchange
				  Act of 1934 (15 USC
				  78a et seq.) relating to reserves and custody
				  of securities requirements.
(b)
				  Notification and Filings. Every broker-dealer shall notify, or file a specified
				  document with, or make records available to, the Commissioner whenever Rule
				  15c3-3 requires a broker-dealer to notify, or make records available to, or
				  file a specified document with, the Securities and Exchange Commission and/or
				  Examining Authority as defined in Rule 15c3-1 (17 CFR
				  240.15c3-1). Such
				  notification or filing shall be in the manner prescribed in Rule
				  15c3-3.
(c) Control of Securities.
				  Securities under the control of the broker-dealer shall be deemed to be
				  securities which, in addition to those specified in Rule 15c3-3 are held in
				  such other locations as the Commissioner shall upon application from a
				  broker-dealer find and designate to be adequate for the protection of customer
				  securities.
(d) Examining Authority
				  for Nonregistered Broker-Dealers. The term "Examining Authority" as used in
				  Rule 15c3-3 shall mean, in the case of any nonregistered broker-dealer, the
				  Commissioner.
(e) Exemption. Upon
				  written application by a broker-dealer, the Commissioner may exempt such
				  broker-dealer from the provisions of this section, either conditionally or on
				  specified terms or conditions, if the Commissioner finds that the broker-dealer
				  has established safeguards for the protection of funds or securities for
				  customers comparable to those provided for by Rule 15c3-3 and that it is not
				  necessary in the public interest or for the protection of investors to subject
				  the particular broker-dealer to the provisions of this section.
(f) References to Securities and Exchange
				  Rules. For purposes of this section, the following references to rules of the
				  Securities and Exchange Commission in Rule 15c3-3 shall mean references to
				  corresponding rules of the Commissioner as set forth in this Chapter 3:
(1) Rule 8c-1 (17 CFR 240.8c-1) and
				  15c2-1 (17 CFR
				  240.15c2-1) shall mean
				  Section 260.216.8.
(2) Rule 15c3-1 (17 CFR
				  240.15c3-1) shall mean
				  Section 260.216.12.
(3) Rule 17a-3 (17 CFR 240.17a-3)
				  shall mean Section
				  260.241.
(4) Rule 17a-4 (17 CFR 240.17a-4)
				  shall mean Section
				  260.241.2.
(5) Rule 17a-5 (17 CFR 240.17a-5)
				  shall mean Section
				  260.241.2.
(6) Rule 17a-13 (17 CFR 240.17a-13)
				  shall mean Section
				  260.241.6.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.13 - Ratio of Net Capital to Aggregate Indebtedness. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Amendment
					 of subsection (a) filed 3-1-74; effective thirtieth day thereafter (Register
					 74, No. 9).
2. Repealer filed 12-31-75 as an emergency; designated
					 effective 1-1-76. Certificate of Compliance included (Register 76, No.
					 1).
Note: Authority cited: Section
						25610,
						Corporations Code. Reference: Sections
						25216,
						25231,
						25237
						and
						25241,
						Corporations Code.
California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2 - Corporate Securities › Article 9 - Regulation of Broker-Dealers and Agents › Section 260.216.14 - Use of Customer Free-Credit Balance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No broker-dealer shall use any funds arising out of any
					 free credit balance carried for the account of any customer in connection with
					 the operation of the business of such broker-dealer unless such broker-dealer
					 has established adequate procedures pursuant to which each customer for whom a
					 free credit balance is carried will be given or sent, together with or as a
					 part of the customer's statement of account, whenever sent but not less
					 frequently than once every three months, a written statement informing such
					 customer of the amount due to the customer by such broker-dealer on the date of
					 such statement, and containing a written notice that (a) such funds are not
					 segregated and may be used in the operation of the business of such
					 broker-dealer; and (b) such funds are payable on the demand of the customer.
					 For the purpose of this section, the term "customer" shall mean every person
					 other than a broker-dealer.
1. Editorial
					 correction adding NOTE filed 4-6-83 (Register 83, No.
					 15).
Note: Authority cited: Sections
						25216
						and
						25610,
						Corporations Code. Reference: Section
						25216,
						Corporations Code.