California's Institutional Investor Exemption

California has an exemption from the issuer qualification requirement under the Corporate Securities Law of 1968 for any offer or sale to, among other listed entities, institutional investors or governmental agencies or instrumentalities that the Commissioner of Corporations may designate by rule.  Rule 260.102.10 designates certain entities as institutional investors, but that rule hasn't been amended since Survivor was belting out "Eye of the Tiger".  Moreover, the rule, like many California rules, is way out of step with statutory or regulatory exemptions in other states.

Recently, Alan Parness has taken up the task of suggesting some changes to Rule 260.102.10 and related rules.  Here are links to Alan's letter and his proposed amendments.

For more on Section 25102(i), see my earlier post.