Stock market laws and regulations in California can be complex, but understanding the basics is crucial for investors. In this article, we will delve into the key aspects of stock market law in California.
Under California state law, brokerage firms are required to register with the Financial Industry Regulatory Authority (FINRA) if they trade in more than $5 million in securities per year. This is known as a "brokerage firm registration" or "Registration Rule 15-12(c)(1)".
California law also provides investor protection for certain types of investments, such as the California Securities Exchange Act (CSEA) and the Uniform Institutional Investor Publication Rules.
The CSEA requires investment advisers to register with the Financial Industry Regulatory Authority (FINRA), disclose their relationship with clients, and provide clear information about their services and fees. Investors can also file complaints with FINRA if they believe an adviser has engaged in unethical or illegal conduct.
Enforcement of California stock market laws and regulations is the responsibility of various state agencies, including the Financial Industry Regulatory Authority (FINRA) and the Attorney General's office. Penalties for non-compliance can range from fines to license revocation.
In conclusion, California's stock market laws and regulations can be complex, but understanding the basics is crucial for investors. By staying informed about key regulations, investor protection laws, enforcement actions, and penalties, investors can make informed decisions when it comes to their financial interests.