In People v. Cole, 156 Cal. App. 4th 452 (2007), a California Court of Appeal appeared to reach the surprising conclusion that corporate officers and directors of issuers are required to be licensed as broker-dealers unless they receive a commission for the sale of securities!
As discussed in this post, Commissioner Preston DuFauchard responded to the Cole decision by proposing the adoption of a safe harbor rule that largely mirrors the SEC’s safe harbor rule (Rule 3a4-1). Yesterday, the California Office of Administrative Law approved the Commissioner’s proposed rule (10 CCR 260.004.1). The rule will officially take effect on June 3, 2011.
Please see article below.
Please see full publication below for more information.