Sec. 260.211.5 - Annual Renewal of Exemption for Finders: Form

ยง 260.211.5. Annual Renewal of Exemption for Finders: Form

(a) Filing: A finder must annually renew the exemption by filing the Statement of Information form in subsection (g) of Section 260.211.4 of these rules with the Commissioner of Business Oversight in accordance with the form instructions on or before the filing date specified in Section 25206.1, subdivision (d)(1), of the Code. The Commissioner may request additional information, documentation or detail pertaining to the form to be filed with the Department.

(b) Filing Fee: The fee for filing the renewal Statement of Information is $275.00 as prescribed in Section 25206.1, subdivision (d)(2), of the Code. The finder must remit the fee payable to the Department of Business Oversight with the Statement of Information. The fee is not refundable.

(c) Completion of Filing: A Statement of Information is not considered filed until the required fee and a completed form are received by the Commissioner.

(d) Amendment to the Statement of Information: A finder must notify the Commissioner of any change to the information in the renewal 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.

(e) Registration as a Broker-Dealer or Agent Required: A finder who commits any of the following acts does not meet the requirements for the exemption as a finder 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) Failure to renew the exemption or pay the renewal filing fee to the Commissioner before the filing due date specified in Section 25206.1, subdivision (d), of the Code,

(2) Failure to comply with the conditions for a finder in Section 25206.1, subdivision (a), of the Code,

(3) Performance of any of the acts or satisfaction of any of the circumstances 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)) pursuant to Section 25206.1, subdivision (d)(1)(A)(ii), of the Code,

(4) Failure to obtain a signed written agreement or the written consent of each person introduced or referred by the finder, or to provide the disclosures and information in accordance with Section 25206.1, subdivision (e), of the Code,

(5) Failure to disclose whether transaction-based compensation was received as specified in Section 25206.1, subdivision (d)(1)(B), of the Code, and

(6) Failure to maintain the records required under Section 25206.1, subdivision (f).

(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 25165, 25206.1 and 25212, Corporations Code; Sections 13140, 13142, 13143 and 13144, Government Code; and 17 C.F.R. 230.506(d).

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