California Financing Law: commercial loans: investment advisers.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill allows registered investment advisors with the SEC to apply for and obtain a California finance lender license to make commercial loans on their own behalf and for their clients. To receive the license, these advisors must meet specific requirements, including maintaining a surety bond, undergoing background checks, demonstrating minimum net worth, and filing detailed information about their client accounts. The bill also clarifies that a license covers affiliated investment advisors and establishes a process for reporting commercial lending activity annually.
Key provisions
- SEC-registered investment advisors can apply for a finance lender license.
- Licenses are limited to commercial loans only.
- The license covers affiliated investment advisors.
- Requires an appendix listing all client accounts.
- Requires a surety bond of at least $25,000 per client account.
- Requires background checks and net worth requirements.
- Establishes an annual reporting requirement for commercial lending activity.
- Sets a minimum loan amount ($500,000) for the license to apply.
Who is affected
- Investment advisors (SEC-registered)
- Financial institutions
- Borrowers and consumers of commercial loans
- The California Department of Financial Protection and Innovation
- Affiliated investment advisors
Notable changes
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours