Notice to Applicants


In order to expedite the review of applications for qualification of the offer and sale of securities filed with the Department of Financial Protection and Innovation, it is strongly recommended that counsel submit a cross-reference sheet showing the location in the application, and in any accompanying exhibits filed as part of the application, compliance with, or variance from, all of the applicable provisions of the Corporate Securities Law of 1968 and the Commissioner’s Rules, including the qualification standards (Corporations Code section 25000 et seq. and 10 C.C.R. Sec. 260.110 et seq. and 260.140 et seq.). As an example, an application for qualification of the issuance of securities pursuant to an applicant’s stock option plan for officers, directors, consultants, and employees should be accompanied by a cross-reference sheet showing the location in the plan documents where compliance exists with, or there is variance from, those requirements listed under Rule 260.140.41, among the other applicable requirements. Justifications and other reasons for a request for a variance should be included as part of the cross-reference sheet.

The goal of the Department is to process all applications in an expeditious and efficient manner. The filing of a cross-reference sheet will greatly assist the Department in meeting this goal.