Cal. Code Regs. Tit. 10, § 1805.210 - Books and Records of Securities Depositories

(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.

(b) Every licensed securities depository shall prepare and maintain, at least monthly and on a regular period basis, a balance sheet as of the close of such period and a profit and loss statement covering its operations for such period, such statements to be prepared on a basis consistent with the financial report required under Section 30213 of the Financial Code.

(c) Every licensed securities depository shall keep and maintain its books and records on an accrual basis, and shall maintain its books, accounts, records and files in accordance with generally accepted accounting principles and good business practice.

(d) Every licensed securities depository shall maintain its books and records in such a manner and at such locations that the complete destruction of its records at any one location will not disable it from promptly recovering the information required to be maintained under this section.

Notes

Cal. Code Regs. Tit. 10, § 1805.210

Note: Authority cited: Section 30006, Financial Code. Reference: Sections 30210 and 30211, Financial Code.

1. Amendment filed 8983; effective thirtieth day thereafter (Register 83, No. 33).