June 18, 2019

June 18, 2019

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June 17, 2019

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Commissioner Issues Annual Securities Report

The California Commissioner of Business Oversight is require to prepare an annual report summarizing the data collected from issuers that were granted permits to offer and sell securities pursuant to Corporations Code § 25113(b).  The Commissioner recently issued the 2018 report.  The report includes:

  • General categories of investments for which permits were approved;
  • Experience and net worth requirements imposed on issuers or sponsors;
  • The total amount of money sought to be raised per category;
  • Enforcement actions the Commissioner of Business Oversight has taken against permit holders; and
  • Other information deemed relevant by the Commissioner.

In 2017 (the year covered by the report), the Commissioner issued 126 permits to issuers in the following categories: agriculture, banking, church debt, church extension funds, cooperatives, country clubs, educational services, financing hard money lenders, manufacturing, media, mobile home parks, mutual water companies, real estate investment trusts (REITs), retail, sports and recreation, and technology.  The amount that these companies sought to raise was sizable, totaling $7,157,281,235:

Funds (graph included in the report).

It should be noted the Commissioner's report does not cover offerings qualified by coordination or notification.  Nor does it include offering exempt from qualification under the California Corporate Securities Law.

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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm

Keith Paul Bishop is a partner in Allen Matkins' Corporate and Securities practice group, and works out of the Orange County office. He represents clients in a wide range of corporate transactions, including public and private securities offerings of debt and equity, mergers and acquisitions, proxy contests and tender offers, corporate governance matters and federal and state securities laws (including the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act), investment adviser, financial services regulation, and California administrative law. He regularly advises clients...