Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Every licensed securities depository
shall make and keep current the records relating to its business:
(1) Ledgers (or other records) reflecting all
assets, liabilities, and capital, and the income and expenses of the
licensee.
(2) Journals (or other
records of original entry) containing an itemized daily record of all receipts,
deliveries, transfers, pledges and loans of securities (including names of
issuers, certificate numbers and CUSIP (Committee on Uniform Security
Identification Procedures) all receipts and disbursements of cash and all other
debits and credits . Such records shall show the account for which each
receipt, delivery, transfer, pledge or loan of securities was effected; the
name and amount of securities; the CUSIP numbers; the number of units and
aggregate market value (if any); the date of receipt, delivery, transfer,
pledge or loan of securities; and the name or other designation of the person
from whom received or to whom delivered, transferred, pledged or
loaned.
(3) Ledger accounts (or
other records) itemizing separately for each account of every depositor,
customer or pledgee all receipts, deliveries, transfers, for such account and
all other debits and credits to such an account, on a daily basis.
(4) Ledgers (or other records) reflecting
daily the following:
(i) Securities in
transfer, showing from whom transferred and to whom to be delivered,
transferred, pledged or loaned;
(ii) Dividends received and the account for
whom received;
(iii) Dividends paid
or transferred and the account to whom paid or delivered.
(iv) Securities pledged, loaned or held for
the account or benefit of another than the depositor;
(v) Substitution of securities held in
sub-clause (iv) of this clause.
(5) A securities ledger or position record
for each security, on a daily basis, showing the number or unit held and
whether for the depositor's account, pledge, loan or otherwise, including any
security count difference, classified by the date of discovery of the
difference or date of physical count.
(6) A memorandum (or other record) of each
order or instruction received or for the receipt, delivery, transfer, pledge,
loan or otherwise of securities whether completed or incompleted. Such
memorandum shall show all the terms and conditions of the order or
instructions, and any modifications or cancellations thereto.
(7) A record of all receipts, deliveries,
transfers, pledges or loans of securities and all other notices or advice items
for the account of each depositor, customer, or pledgee.
(8) A record of the proof of money balances
of all ledger accounts in the form of a trial balance, prepared at least
monthly. Such trial balances shall be prepared on a basis consistent with the
financial statement filed or required to be filed, pursuant to subdivision (a)
of Section
30213 of
the Financial Code and Section
1805.213 of these rules.
(9) A questionnaire or application for
employment executed by each employee of the securities depository, which
questionnaire or application shall be approved in writing by an authorized
officer of the securities depository and shall contain at least the following
information with respect to each such person:
(i) His name, address, social security
number, and the starting date of his employment with the securities
depository.
(ii) His/her date and
place of birth.
(iii) A complete,
consecutive statement of all his/her business connections and employments for
at least the preceding 10 years, including his/her reason for leaving each
employment.
(iv) A record of any
arrests, indictments or convictions for any felony or any misdemeanor, except
minor traffic offenses, of which he/she has been the subject.
(v) A record of any disciplinary action
taken, or sanction imposed upon him/ her by any federal or state agency, or by
any national securities exchange, national securities association or any
commodity exchange regulated by the federal or by any state
government.
(vi) A record of any
civil actions brought against him/her based upon conduct showing moral
turpitude.
(vii) A record of any
permanent or temporary injunction entered against him/her or against any firm
with which he/she was associated in any capacity at the time such injunction
was entered.
(viii) A record of any
other name or names by which he/ she has been known or which he/she has been
known or which he/she used.
(10) Copies of all applications and
amendments thereto, and of all reports, filed with the Commissioner pursuant to
the provisions of the Securities Depository Law.
(11) A record of all holders of its capital
stock, together with such information as is necessary to demonstrate compliance
with the provisions of Section
30201 of
the Financial Code.
(b)
Every licensed securities depository shall prepare and maintain, at least
monthly and on a regular period basis, a balance sheet as of the close of such
period and a profit and loss statement covering its operations for such period,
such statements to be prepared on a basis consistent with the financial report
required under Section
30213 of
the Financial Code.
(c) Every
licensed securities depository shall keep and maintain its books and records on
an accrual basis, and shall maintain its books, accounts, records and files in
accordance with generally accepted accounting principles and good business
practice.
(d) Every licensed
securities depository shall maintain its books and records in such a manner and
at such locations that the complete destruction of its records at any one
location will not disable it from promptly recovering the information required
to be maintained under this section.
1. Amendment
filed 8983; effective thirtieth day thereafter (Register 83, No.
33).
Note: Authority cited: Section
30006,
Financial Code. Reference: Sections
30210 and
30211,
Financial Code.
