California issuer exemption

In our continuing series of state law provisions exempting issuers from selling their own securities, we visit California!  California Administrative Code (10 CCR Section 260.004.1) adopts the US federal issuer exemption under Rule 3a4-1 of the Exchange Act.

“The term “broker-dealer,” as defined in section 25004 of the Corporate Securities Law of 1968, does not include an associated person of an issuer who is deemed not to be a broker pursuant to Rule 3a4-1 under the Securities Exchange Act of 1934 as amended (17 C.F.R. 240.3a4-1) (“Rule 3a4-1”)(50 FR 27946, July 9, 1985).”