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HomeCorporations CodeCh. 4§ 25250 Broker-Dealer Unsafe Practices Order

§ 25250 Broker-Dealer Unsafe Practices Order

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

§ 25250 Broker-Dealer Unsafe Practices Order

Key Takeaways

  • •The law lets a boss (called the commissioner) stop bad behavior by people who sell investments or give investment advice.
  • •The boss can make them stop right away if they think the person is doing something unsafe or harmful.
  • •The boss must write an order telling them to stop, but it’s not permanent until more steps are taken.

Example

If a person selling stocks keeps lying to customers about how safe an investment is, the boss can tell them to stop lying immediately.

The boss writes an order to stop the lying, and the person must stop right away. But the order isn’t final until more steps are done.

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

Official Source
View on CA.gov

§ 25250 Broker-Dealer Unsafe Practices Order

If, after examination or investigation, the commissioner has reasonable grounds to believe that any broker-dealer or investment adviser, other than an investment adviser subject to Section 25230.1, is conducting or has conducted business in an unsafe or injurious manner, the commissioner shall, by written order addressed to the broker-dealer or investment adviser, direct the discontinuance of the unsafe or injurious practices. The order shall be effective immediately, but shall not become final except in accordance with the provisions of Section 25251. (Amended by Stats. 2022, Ch. 188, Sec. 2. (AB 2433) Effective January 1, 2023.)

Last verified: January 23, 2026

Key Terms

broker-dealerinvestment adviserunsafe or injurious mannerwritten orderSection 25230.1Section 25251

Related Statutes

  • § 25240 Broker-Dealer Service Consent
  • § 25249 Broker-Dealer Violation Orders
  • § 25243 Broker-Dealer Misrepresentation Prohibition
  • § 25244 Surrender Revoked Certificates
  • § 25253 Broker-Dealer Remedial Actions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 25250.
View Official Source