Cal. Code Regs. Tit. 10, § 260.216.12.1 - Reserve and Custody Requirements
Current through Register 2022 Notice Reg. No. 16, April 25, 2022
(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 78 a et
seq.) relating to reserves and custody of securities requirements.
(b) Notification and Filings. Every
broker-dealer shall notify, or file a specified document with, or make records
available to, the Commissioner whenever Rule 15c3-3 requires a broker-dealer to
notify, or make records available to, or file a specified document with, the
Securities and Exchange Commission and/or Examining Authority as defined in
Rule 15c3-1 ( 17 CFR 240.15c3 - 1 ). Such notification or filing shall be in
the manner prescribed in Rule 15c3-3.
(c) Control of Securities. Securities under
the control of the broker-dealer shall be deemed to be securities which, in
addition to those specified in Rule 15c3-3 are held in such other locations as
the Commissioner shall upon application from a broker-dealer find and designate
to be adequate for the protection of customer securities.
(d) Examining Authority for Nonregistered
Broker-Dealers. The term "Examining Authority" as used in Rule 15c3-3 shall
mean, in the case of any nonregistered broker-dealer, the
Commissioner.
(e) Exemption. Upon
written application by a broker-dealer, the Commissioner may exempt such
broker-dealer from the provisions of this section, either conditionally or on
specified terms or conditions, if the Commissioner finds that the broker-dealer
has established safeguards for the protection of funds or securities for
customers comparable to those provided for by Rule 15c3-3 and that it is not
necessary in the public interest or for the protection of investors to subject
the particular broker-dealer to the provisions of this section.
(f) References to Securities and Exchange
Rules. For purposes of this section, the following references to rules of the
Securities and Exchange Commission in Rule 15c3-3 shall mean references to
corresponding rules of the Commissioner as set forth in this Chapter 3:
(2)
Rule 15c3-1 ( 17 CFR 240.15c3 - 1 ) shall mean Section260.216.12.
(3) Rule 17a-3 (
17 CFR
240.17a-3 ) shall mean Section
260.241.
(4) Rule 17a-4 (
17 CFR
240.17a-4 ) shall mean
Section260.241.2.
(5) Rule 17a-5 (
17 CFR
240.17a-5 ) shall mean
Section260.241.2.
(6) Rule 17a-13 (
17 CFR
240.17a-13 ) shall mean
Section260.241.6.
Notes
Note: Authority cited: Sections 25216(c) and 25610, Corporations Code. Reference: Section 24216, Corporations Code.
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