Client Alert

California Department of Business Oversight Issues New Rules Affecting Investment Advisers and Broker Dealers

January 30, 2014


California’s Commissioner of Business Oversight (the “Commissioner”) recently issued new rules and regulations affecting investment advisers and broker dealers licensed by the California Department of Business Oversight (the “DBO”). On January 9, 2014, the Commissioner adopted amendments to the state’s custody rule, Section 260.237 of Title 10 of the California Code of Regulations. The new rule incorporates provisions from Rule 206(4)-2, promulgated by the Securities and Exchange Commission under the Investment Advisers Act of 1940, and the North American Securities Administrators Association Model Rule. On November 22, 2013, the Commissioner issued an order regarding electronic communications, requiring licensees to establish and monitor an email address dedicated to receiving communications from the DBO.

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