Licensing of Capital Access Companies

Title 4, Division 3, Chapter 3 deals with the licensing of capital access companies in California under its securities law.

Section 28150 provides that no person proposing to transact or transacting business in this state, other than a licensee, is allowed to use any name or title that indicates that it is a capital access company or otherwise represent that it is a capital access company or that it is a licensee.

Any company that proposes to apply for a license or that has applied for a license, may, before being issued a license, use a name or title that indicates that it is a capital access company if it meets all three of the specified requirements.

Section 28151 prohibits any person other than a person who meets the definition of a licensee to be issued a license under this division.

Section 28152 provides that, if the commissioner finds all six of the specified conditions with respect to an application for a license, the commissioner is required to approve the application.

Section 28153 allows the commissioner to find that a director, officer, or controlling person of an applicant is not of good character if the director, officer, or controlling person or any director or officer of the controlling person has been convicted of, or has pleaded nolo contendere to, a crime involving fraud or dishonesty.

Section 2854 prohibits a license from being transferable or assignable.

Section 28155 prohibits a licensee to represent that it is sponsored, recommended, or approved by, or that its abilities or qualifications have in any respect been passed upon by, the commissioner.

Also, licensees are prohibited from advertising, printing, displaying, publishing, distributing, or broadcasting, or causing or permitting to be advertised, printed, displayed, published, distributed, or broadcast in any manner, any statement or representation with regard to the business subject to the provisions of this division that is false, misleading, or deceptive, or that omits material information.