At Bakhtiari & Harrison, we focus on securities law, ensuring our clients navigate the complexities of California’s securities regulations with confidence. Below, we provide a detailed overview of key California Securities Statutes, explaining their significance and application.
Corporate Securities Law of 1968
The Corporate Securities Law of 1968 is the foundation of California’s securities regulation. This law governs the issuance and sale of securities in California, ensuring transparency and fairness in the securities markets.
Key Provisions:
- Section 25110: Prohibits the offer or sale of securities in California unless the sale has been qualified or is exempt from qualification.
Section 25110 - Section 25120: Requires issuers to qualify their securities offerings by filing an application with the Department of Financial Protection and Innovation (DFPI).
Section 25120 - Section 25130: Details the exemptions from qualification, including certain private placements and limited offerings.
Section 25130
California Investor Protection Act
The California Investor Protection Act aims to protect investors from fraudulent and unethical practices in the securities markets.
Key Provisions:
- Section 25210: Requires broker-dealers and investment advisers to register with the DFPI.
Section 25210 - Section 25216: Establishes the requirement for broker-dealers and investment advisers to adhere to ethical standards and practices.
Section 25216 - Section 25218: Empowers the DFPI to investigate and discipline registered entities and individuals for violations of securities laws.
Section 25218
California Commodity Law of 1990
The California Commodity Law of 1990 regulates the offer and sale of commodity contracts and options in California.
Key Provisions:
- Section 29520: Prohibits fraudulent practices in the sale of commodities and commodity contracts.
Section 29520 - Section 29531: Requires commodity brokers and advisors to register with the DFPI.
Section 29531 - Section 29536: Establishes record-keeping and reporting requirements for commodity brokers and advisors.
Section 29536
California Franchise Investment Law
The California Franchise Investment Law governs the offer and sale of franchises in California, ensuring franchisors provide prospective franchisees with material information about the franchise.
Key Provisions:
- Section 31110: Requires franchisors to register their franchise offerings with the DFPI before offering or selling franchises in California.
Section 31110 - Section 31119: Mandates that franchisors provide a Franchise Disclosure Document (FDD) to prospective franchisees.
Section 31119 - Section 31123: Details the exemptions from registration for certain franchise offerings.
Section 31123
California Uniform Securities Act
The California Uniform Securities Act is designed to coordinate state securities laws with federal laws and regulations, facilitating uniformity and consistency in securities regulation.
Key Provisions:
- Section 25500: Establishes civil liability for violations of the Corporate Securities Law of 1968.
Section 25500 - Section 25504: Details the joint and several liability of persons who control or materially aid in the violation of securities laws.
Section 25504 - Section 25510: Provides for the statute of limitations on securities fraud actions.
Section 25510
Conclusion
California’s securities statutes play a vital role in protecting investors and maintaining the integrity of the state’s securities markets. At Bakhtiari & Harrison, we are committed to helping our clients understand and comply with these complex regulations. For more information or legal assistance, please contact us at www.bhseclaw.com or call us at (310) 499-4732. Our experienced securities attorneys are here to support you in navigating California’s securities laws.