LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeCorporations CodeCh. 1§ 25207 Financial Institution Investment Exemptions

§ 25207 Financial Institution Investment Exemptions

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 25207 Financial Institution Investment Exemptions

This law says that if a bank or similar financial firm works with an investment company under certain special rules, it doesn't have to follow some other rules, but it still has to follow a different set of rules.

Key Takeaways

  • •Financial institutions working under specific investment‑company rules get a break from Sections 25210 and 25230.
  • •They still have to follow other sections (25218, 25234, 25235, 25237, and parts of 25216).
  • •Being exempt from those sections does not change the firm’s status as a broker‑dealer or investment adviser.

Example

A bank helps a mutual fund manage its money under Section 1514 of the Financial Code.

Because the bank is acting under that special rule, it does not have to obey Sections 25210 or 25230, but it still must obey Sections 25218, 25234, 25235, 25237 and parts (a), (b), and (d) of Section 25216.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 25207 Financial Institution Investment Exemptions

A financial institution that undertakes activities with respect to an investment company pursuant to the provisions of Section 1514, 6524, 14652.5, or 18022.5 of the Financial Code shall not be subject to Section 25210 or 25230 in connection with such activities but shall be subject to Sections 25218, 25234, 25235, and 25237 and to subdivisions (a), (b), and (d) of Section 25216, and such rules thereunder as the commissioner may specify by rule. Nothing in this section shall affect the status of such a financial institution as a broker-dealer or investment adviser, or the employees of such persons, when engaged in the activities authorized by the provisions of the Financial Code specified above. (Amended by Stats. 2015, Ch. 190, Sec. 15. (AB 1517) Effective January 1, 2016.)

Last verified: January 10, 2026

Key Terms

financial institutioninvestment companybroker-dealerinvestment adviser

Related Statutes

  • § 25200 Out-Of-State Broker-Dealer Exemption
  • § 25202 Out-Of-State Adviser Exemption
  • § 27002 Definition Of Individual
  • § 25213 Broker-Dealer Discipline Authority
  • § 25214 Employment Ban Violation

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 25207.
View Official Source