Securities Regulation

The Securities Regulation Division (SRD) is one of three operational divisions under the California Corporations Commissioner. SRD is headed by an Assistant Commissioner and is responsible for the qualification of the offer and sale of securities and the licensing and regulation of broker-dealers, broker-dealer agents and investment advisers, pursuant to the Corporate Securities Law of 1968. SRD also qualifies outstanding securities for secondary market transactions that are not traded on an exempt exchange or marketplace. Finally, SRD is responsible for administration of the Franchise Investment Law under which the offer and sale of franchises are registered.

SRD examines and analyzes various types of filings, including: applications for qualification; notices of exemption; consents to transfer legended securities; and the approval of repurchase offers pursuant to the Corporate Securities Law of 1968. Applications for the registration of the offer and sale of franchises pursuant to the Franchise Investment Law are also examined.

SRD is responsible for the licensing, regulation and examination of persons subject to licensing under these laws, such as broker-dealers and investment advisers.

SRD refers matters to the Enforcement Division (ENF) for appropriate administrative, civil or criminal action. SRD works with ENF in the conduct of investigations and proceedings related to the qualification of securities, the registration of franchises, and in connection with administrative proceedings involving broker-dealer and investment adviser Licensees.

SRD also works with the Office of Legislation & Policy (OLP) in regard to rulemaking, releases, legislation, and interpretative opinions.


SRD Information