California Administrative Code

Upon application (Form 260.141.50), the Commissioner will issue an order eliminating the restriction on transfer provided for in any condition imposed pursuant to Section 260.141.10, or eliminating the restriction on transfer imposed upon securities by an order issued pursuant to…

(a) All previous permits issued by the Commissioner under the California Corporate Securities Law as it existed prior to January 2, 1969, requiring the escrow of securities (other than promotional shares subject to waivers of assets or dividends and other than shares issued by co…

Upon application, the Commissioner may issue an order eliminating the conditions imposed on promotional shares when the issuer has demonstrated a satisfactory earnings record, if no other circumstances exist which would require the continuation of one or more of such conditions. …

When an impound condition is imposed in connection with the sale of securities, the issuer may not issue any certificates or other evidences of securities, except subscription agreements, unless and until the impound condition has been satisfied and the impounds have been release…

(a) When an impound condition is imposed, the issuer shall deliver to each subscriber a subscription agreement in a form approved by the Commissioner. The subscription agreement shall set forth, at least, (1) the complete names and addresses of the issuer and the subscriber; (2) …

In cases where the Commissioner determines that there is an unusual danger that promotional shares might be distributed to the public despite the requirement of a legend on the certificates, he may require that the certificates representing promotional shares be deposited in escr…

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, cons…

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, co…

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 an…

(a) Definitions. For purposes of this section 260.204.9 (this “rule”), the following definitions shall apply: (1) “Private fund adviser” means an investment adviser who provides advice solely to one or more qualifying private fund(s). (2) “Qualifying private fund” means an issuer…

(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 Stre…

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.

§ 7283. Request to Change the Case Record. [Renumbered] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I58D26D834C6B11EC93A8000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageI…

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 a…

(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) Notifica…

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 trans…

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 wri…

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 t…

§ 7285. Prohibition Against Redisclosure. [Renumbered] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I58D924434C6B11EC93A8000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageIt…

§ 9.12. Central Coast Streams: Stream Closures: Special Low Flow Conditions. [Repealed] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/IFEB17E9C5B4C11EC976B000D3A7C4BC3?viewType=FullText&originationContext=document…

The application for a certificate as an investment adviser and all amendments thereto shall be filed as follows: (a) Initial Application: The application for a certificate as an investment adviser pursuant to Section 25231 of the Code shall be made by completing Form ADV in accor…

(a) The filing of an application, renewal, or notice with the Investment Adviser Registration Depository (“IARD”) or directly with the Commissioner shall constitute a representation by the applicant or investment adviser that the applicant or investment adviser is not ineligible …

(a) Definitions. As used in this rule, the following terms mean: (1) “Approved IAR Continuing Education Course” means a course approved by NASAA at the time the IAR takes the course and that is approved in accordance with the process set forth on pages 20 through 27 of the NASAA …

The following activities do not promote “fair, equitable or ethical principles,” as that phrase is used in Section 25238 of the Code: (a) Recommending to a client to whom investment supervisory, management or consulting services are provided the purchase, sale or exchange of any …

(a) An investment adviser's electronic signature on the Execution Page of Form ADV (Uniform Application for Investment Adviser Registration (17 CFR 279.1), filed with the Investment Adviser Registration Depository (“IARD”), shall constitute the consent to service of process requi…

(a) Unless otherwise provided by order of the Commissioner, every broker-dealer shall make, maintain, and preserve books and records in compliance with U.S. Securities and Exchange Commission rules 15c2-11 (17 CFR 240.15c2-11), 15g-2(c) (17 CFR 240.15g-2(c)), 15g-4(b)(2) (17 CFR …

For purposes of Section 25402 of the Code, an issuer or person described in Section 25402 shall not be deemed to have purchased or sold an issuer's security at a time when that person knows material information about the issuer if the issuer or such person demonstrates that the p…

§ 9.26. Main Stem Eel River Restrictions (Mendocino and Lake Cos.), from Mendocino-Trinity County Line to Scott Dam. [Repealed] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/IFEDC863A5B4C11EC976B000D3A7C4BC3?viewT…

For the purposes of Section 25504.2 of the Code and this subarticle, the following definitions apply: (a) “Expert” means any accountant, engineer, appraiser or other person whose profession gives authority to a statement by such person, including without limitation an actuary, as…

(a) When an expert is named in a prospectus or offering circular in accordance with Section 260.504.2.2, there shall be disclosed in the prospectus the nature and amount of any direct or indirect material interest of any such expert in the issuer of such securities, including any…

These regulations may be referred to and cited as the Insurer Securities Permit Regulations; the abbreviated citation is ISPR.

§ 7214.5. Food Service Contracts; Interviews; Selection of a Vendor. [Reserved] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I573279254C6B11EC93A8000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&tran…

A. “Commissioner” means the Insurance Commissioner of the State of California (Section 20) B. “Department” means the Insurance Department of the State of California as constituted by statute. (Sections 21 and 12906) C. “Insurer” for the purpose of these rules includes every organ…

Insurance Code Section 12905 specifies that “The commissioner shall maintain offices in Sacramento, Los Angeles, San Diego, and the San Francisco Bay area.” Office addresses of the Department are: 1901 HARRISON STREET, 3RD FLOOR MAILROOM OAKLAND, CA 94612 300 SOUTH SPRING STREET,…

§ 6558. Foghorn. [Repealed] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I6DE339255B4D11EC976B000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)

An application for an insurer securities permit shall be typewritten in the English language on 8-1/2″ x 13″ paper. They shall be substantially in the form prescribed by this Article. Applications filed in the Los Angeles office shall be in duplicate. Applications filed in the Oa…

The office address of any legal counsel representing applicant in the application matter shall plainly appear on the first page of the application or on the letterhead of the letter transmitting it for filing.

In the event of appearance of new legal counsel after the filing of the initial application, authentic written authority from applicant for the appearance or substitution, as the case may be, shall accompany the first paper filed by the new or substituted attorney at law or shall…

Every application for an insurer securities permit shall be appropriately entitled below the caption. An example of the most common entitlement is: In the Matter of the Application of ) ABC INSURANCE COMPANY ) Sacramento, California ) For a Permit to Offer and Sell ) Shares of it…

Every application for an insurer securities permit shall be descriptively named or labeled so as to identify its nature, e.g.: “Application for Preorganization Permit,” “Application for Subscription Permit,” “Application for Organizational Permit” (for initial sale of stock), “Ap…

Insurance Code Section 834 requires that the application shall be verified as required by the Code of Civil Procedure. All material information submitted shall be verified; otherwise it may be regarded as having no probative value. When an application is executed in this state or…

Unless otherwise provided by these regulations or authorized by statute, every application for an insurer securities permit shall allege under oath or lawful verification as to the truth thereof the following information, either in the body of the application or by exhibits refer…

NOTE: The presence in these regulations of this and the following section in this article does not mean that a negotiating permit is a necessary precedent to a definitive permit. A definitive permit may always and quite often does authorize negotiations. Where applicant is confid…

Negotiating permits are appropriate under the following circumstances: A. Applicant desires to approach the governing body of another entity concerning a proposal which, if duly adopted by the parties, will require the commissioner's (definitive) permit in order lawfully to effec…

Applications by underwritten title companies, attorneys-in-fact of reciprocal insurers, and exclusive managers of domestic insurance companies for permits to sell their stock for initial capitalization purposes, are subject to and shall comply with the applicable portions of Arti…

A. In the case of domestic applicants being organized for the purpose of assuming the risk of loss under contracts of insurance, the quantum of proof customarily needed pursuant to Insurance Code Section 839 must be sufficient to satisfy the commissioner of at least the following…

The persons investing pursuant to this article shall be required to execute an appropriate agreement with the company for the benefit of the company and all of its shareholders providing that the periods hereinafter specified from the date of completion of the original issue or g…

This section applies to Applications for funding for new construction, modernization, Overcrowding Relief Grant, Career Technical Education Facilities Program, Facility Hardship pursuant to Sections 1859.82.1 and 1859.82.2, Charter School Facilities Program, and Small School Dist…

A. Stock options to attorneys at law for applicants are disfavored. (Section 839) B. Stock options to underwriters are not permitted. (Section 839)

§ 9040. Employment Status Notifications. [Renumbered] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I2F07C5C25A1E11EC8227000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageIte…