This morning, the California Department of Corporations issued this Invitation For Comments with respect to its investment adviser rules. The Department had proposed an "omnibus" revision to its investment adviser regulations way back in 2007. Unfortunately, events, including changes to the Securities and Exchange Commission's investment adviser rules, have overtaken that proposal.
The Department is seeking comment on the following rules:
The Department is also seeking comment on the adoption of the following rules:
With the redrawing of jurisdictional lines pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, these proposed rules are likely to be of interest to hundreds of investment advisers previously registered with the Securities and Exchange Commission. Note that this is a request for input in advance of formal rulemaking under the Administrative Procedure Act. The deadline for comments is January 7, 2011.