Friday, December 03, 2010

California Invites Public Comments on Investment Adviser Rule Proposals

Interested persons are invited to submit comments by January 7, 2011 about new rules and existing rule amendments proposed by the California Department of Corporations that affect investment advisers.

for the invitation and text of the proposed rules/rule changes.

The Department is seeking comments on amendments to the following California securities rules:

Section 260.230.1 (Notice Filing Requirements for Investment Advisers Registered Under Section 203 of the Investment Advisers Act of 1940),
Section 260.231 (Application for Investment Adviser Certificate),
Section 260.235 (Advertisements by Investment Advisers),
Section 260.237 (Custody or Possession of Funds or Securities of Clients),
Section 260.237.2 (Minimum Financial Requirements),
Section 260.238 (Investment Advisers: Fair, Equitable and Ethical Principles), and
Section 260.241.3 (Books and Records to be Maintained By Investment Advisers).

The Department is further seeking comments on the adoption of the following new rules:

Section 260.235.5 (Delivery of Brochures and Brochure Supplements),
Section 260.238.1 (Investment Adviser Code of Ethics),
Section 260.238.2 (Payment for Client Solicitations) and
Section 260.238.3 (Investment Advisers Business Continuity Plan).

* Please submit your comments electronically by January 7, 2011 to

Comments can also be faxed to Karen Fong at (916) 322-5875 or mailed to California Department of Corporations, Office of Legislation and Policy, Attn: Karen Fong, 1515 K. Street, Suite 200, Sacramento, CA 95814.

* Please note that this invitation is a preliminary commenting on the rule changes. Interested persons will again have an opportunity to comment on the proposed rules during the period prior to their being up for public hearing with the intent to adopt.