California Financial Code

§ 30206

FIN § 30206Div. 14 · Ch. 2

Statute text

The commissioner may refuse to issue any license being applied for, and shall refuse to issue any license being applied for if upon his examination and investigation, and after appropriate hearing, he finds any of the following:

(a)That the incorporators, directors, officers, or stockholders lack the character, experience, or general fitness to engage in such a business.

(b)That the proposed licensee’s program of safeguards with respect to custody, handling, recordkeeping, insurance, and auditing of securities on deposit is inadequate for the protection of investors.

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Legislative history

Added by Stats. 1972, Ch. 1057.