Over a year ago, the Commissioner issued this invitation for comments with respect to a complete rewriting of California's custody rule for investment advisers, 10 CCR § 260.237.  The Commissioner received a number of comments.  However, none of the commenters suggested a comprehensive alternative approach.  Now, the Commissioner has issued notice of her intention to proceed with rule making. The proposed rule in general adopts the model rule adopted by the  North American Securities Administrators Association (Model Rule 102(e)(1)-1).

The Commissioner has not scheduled a hearing on the proposed rule.  However, any interested person or his or her duly authorized representative may request, in writing, a public hearing pursuant to Section 11346.8(a) of the California Government Code. The Department of Corporations must receive a request for hearing no later than 15 days prior to the close of the written comment period.  The comment period ends at 5:00 p.m. on December 31, 2012.