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California DBO Proposes Finders Exemption Regulations

Last fall, California enacted a finders exemption to the broker-dealer registration requirement under the Corporate Securities Law of 1968.  See Governor Signs Finders Exemption Bill.  This new exemption took effect on January 1, 2016 isn't exactly taken the state by storm.  See California Finders Exemption Has Yet To Catch On.  Last month, the Commissioner of Business Oversight proposed regulations implementing the new statutory exemption.  The Commissioner's has identified the following objectives of the proposed regulations:

  • Adopting the Statement of Information form that individuals must file with the Department for the exemption;
  • Specifying the requirements for filing and renewing the Statement of Information and paying the filing fees to the Department;
  • Requiring finders to notify the Department of any subsequent change to the information in the Statement of Information and when withdrawing the exemption;
  • Requiring finders to maintain their records at the location identified in the Statement of Information; and
  • Clarifying the Commissioner’s authority to examine the records of a finder at any time.

Notice of Rulemaking Action (May 17, 2016).  The proposed form of notice of exemption and Initial Statement of Reasons are available here and here.  Comments, if any, are due by 5:00 p.m. on July 15, 2016. DBOSeal-75

Ablative Absolutes And The Second Amendment

Yesterday, I mentioned that vice versa is an ablative absolute.  The word "absolute" doesn't mean unqualified or unlimited.  Rather, it is derived from the Latin word absolutus, meaning detached.  Thus, an ablative absolute is a phrase that is grammatically detached from the rest of the sentence.

Many lawyers may be unacquainted with the term "ablative absolute" and yet use the construction in their legal writings.  Here are a couple of examples commonly found in legal writing - pendente lite and mutatis mutandis,   Although the ablative absolute is a construct of Latin's highly inflected grammar (ablative is the name of a Latin noun case ending), an echo of the ablative absolute can be found in the Second Amendment to the United States Constitution:  "A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed."


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30172DBAB0084D3A8F39D7AF0A8E79BC.ashx Keith Paul Bishop
Partner at Allen Matkins
(949) 353-6328
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