Section 260.235.1 - Licensed Broker-Dealers(a) An investment adviser who is a licensed broker-dealer is not subject to the provisions of subdivision (c) of Section 25235 of the Code in connection with any transaction in relation to which such broker-dealer is acting as an investment adviser solely (1) by means of publicly distributed written materials or publicly made oral statements or (2) through the issuance of responses to specific requests for statistical information where such responses involve no expressions of opinion or estimates by such investment adviser as to the investment merits of a particular security; provided, however, that such materials and oral statements include a statement that if the purchaser of the advisory communication uses the services of the adviser in connection with a sale or purchase of a security which is a subject of such communication, the adviser may act as principal for its own account or as agent for another person. For the purpose of this rule, publicly distributed written materials are those which are distributed to 35 or more persons who pay for such materials, and publicly made oral statements are those made simultaneously to 35 or more persons who pay for access to such statements.
(b) The requirement that the investment adviser disclose that it may act as principal or agent for another person in the sale or purchase of a security that is the subject of investment advice does not relieve the investment adviser of any disclosure obligation which may be imposed by subdivision (a) or (b) of Section 25235 of the Code or by other provisions of the Corporate Securities Law of 1968.Cal. Code Regs. Tit. 10, § 260.235.1
1. New section filed 5-29-75 as an emergency; effective upon filing (Register 75, No. 22).
2. Certificate of Compliance filed 9-24-75 (Register 75, No. 39).
3. Editorial correction of NOTE filed 4-6-83 (Register 83, No. 15). Note: Authority cited: Sections 25205 and 25610, Corporations Code. Reference: Sections 25205 and 25235, Corporations Code.
1. New section filed 5-29-75 as an emergency; effective upon filing (Register 75, No. 22).
2. Certificate of Compliance filed 9-24-75 (Register 75, No. 39).
3. Editorial correction of NOTE filed 4-6-83 (Register 83, No. 15).