News & Analysis as of

Investment Adviser California

Procopio, Cory, Hargreaves & Savitch LLP

When Must Private Fund Managers File as an Exempt Reporting Adviser in California?

Some private fund managers in California face potentially dire consequences if they fail to properly register with the state and the U.S. Securities and Exchange Commission (SEC). Failing to adhere to relevant securities laws...more

Allen Matkins

California's Legislature Mulls Weird Definition Of "Hedge Fund"

Allen Matkins on

As the California legislature approaches its final recess of the current session, it is continuing to move AB 3129 (Wood), a bill that would according to the bill's digest "require a private equity group or a hedge fund, as...more

Allen Matkins

Governor Seeks $7.9 Million To Implement Venture Capital Company Reporting Law That He Branded As "Problematic"

Allen Matkins on

Article 14, Section 12 of the California Constitution requires the Governor to submit a budget to the Legislature by January 10 of each year.  The Constitution further required that the budget be accompanied by a budget bill,...more

Allen Matkins

What's The Deal With New SEC Rule 3a5-4 And California?

Allen Matkins on

Section 3(a)(5) of the Securities Exchange Act of 1934 defines the term “dealer” to mean “any person engaged in the business of buying and selling securities . . . for such person’s own account through a broker or otherwise,”...more

Seward & Kissel LLP

SEC Wins First “Shadow Trading” Trial

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On April 5, 2024, after an eight-day trial, a jury in the U.S. District Court for the Northern District of California returned a verdict for the Securities and Exchange Commission in its first “shadow trading” case after...more

Allen Matkins

Mum's The Word At California's Civil Rights Department Regarding Fair Investment Practices By Investment Advisers Law (AKA SB 54)

Allen Matkins on

I wrote about a bill, SB 54, that would have required institutional investors, securities and real estate brokers, and others to report on the diversity status of "founding teams".  At the time, I criticized the bill as being...more

Wiley Rein LLP

California Court of Appeal Confirms Investment Advisor’s Unauthorized Copying of Trade Publication Is Not a Wrongful Act in the...

Wiley Rein LLP on

In a win for Wiley’s client, the California Court of Appeal, applying California law, affirmed the grant of an insurance tower’s motion for summary judgment, finding that an investment advisor’s unauthorized copying of a...more

DarrowEverett LLP

Venture Capital Firms Face New Reporting Requirement With California Law

DarrowEverett LLP on

Over three and a half years since the death of George Floyd spurred some members of the venture capital community to enact promises to increase their investments in diverse entrepreneurs, California has enacted legislation in...more

BCLP

California Imposes Sweeping Demographic Reporting Rule on Private Fund Sponsors

BCLP on

On October 8, 2023, California Governor Gavin Newsom signed into law Senate Bill 54, Fair Investment Practices by Investment Advisers (“SB54”). The law requires that “covered entities” collect and report sensitive demographic...more

Allen Matkins

DFPI Posts Annual B-D/IA Report To The Legislature

Allen Matkins on

The California Department of Financial Protection & Innovation recently posted its 2023 Annual Report to the Legislature regarding its broker-dealer and investment adviser programs.  The report's title is a bit of a misnomer...more

Allen Matkins

California Bill Would Require Notice To The Attorney General 6 Months Before Making Any Purchase From A Grocery Store!

Allen Matkins on

California Assemblymember  Brian Maienschein has introduced a bill, AB 853, that seemingly would impose a notification burden on just about anyone anywhere...more

Allen Matkins

California Bill Would Require Some Advisers To Venture Capital Firms To File Diversity Reports, But What About Preemption?

Allen Matkins on

As I discussed in this post from earlier this month, SB 54 would have required institutional investors, securities and real estate brokers, and others to report diversity status of startup founding teams.  The bill has since...more

Allen Matkins

When Selling Partnership Interests May Require A Real Estate Broker's License

Allen Matkins on

The definition of a "real estate broker" under the California Real Estate Law encompasses much more than simply selling real estate.   For example, Business & Professions Code Section 10131.3 defines a real estate broker as...more

Allen Matkins

CalPERS' Russian Investments

Allen Matkins on

The California Public Employees Retirement System (CalPERS) styles itself as the United States' largest public fund.  In response to a letter from Governor Newsom, CalPERS has reported that it has over three quarters of a...more

Allen Matkins

DFPI BDIA Examinations Continue To Decline

Allen Matkins on

The California Department of Financial Protection & Innovation's Broker-Dealer/Investment Adviser (BDIA) program licenses and regulates investment advisers, investment adviser representatives, broker-dealers, and...more

Allen Matkins

New Laws For A New Year

Allen Matkins on

California's Department of Financial Protection & Innovation has complied this summary of new laws that affect or may otherwise be of interest to persons licensed by the department.  In general, these laws will take effect on...more

Allen Matkins

Governor Appoints New Commissioner - Go Bears!

Allen Matkins on

Yesterday, Governor Gavin Newsom has announced the appointment of Clothilde “Cloey” Hewlett to serve as California's next Commissioner of the Department of Financial Protection and Innovation.  Ms. Hewlett has been serving as...more

Allen Matkins

Commissioner Alvarez Leaves Office On Friday - What Happens Next?

Allen Matkins on

Recently,  Manuel P. Alvarez announced that June 18 will be his last day as Commissioner of the Department of Financial Protection & Innovation.  Until Governor Newsom appoints a successor, Chief Deputy Commissioner Chris...more

Allen Matkins

California's Alarmingly Expansive Definition Of "Investment Adviser"

Allen Matkins on

Is someone who predicts a future stock market crash and advises reallocating investments to precious metals or real estate an investment adviser?  A recent complaint filed the Commodity Futures Trading Commission, California...more

Allen Matkins

Does California's New Consumer Financial Protection Law Apply To SEC Registered Investment Advisers?

Allen Matkins on

As has been previously noted, California's Governor recently signed  AB 1864 (2020 Cal. Stats. Ch. 157) into law (aka the "California Consumer Financial Protection Law").  Broadly speaking, this new law will bestow new...more

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