Home Table of Contents

§ 280.600. Financial Statements.


Barclays Official California Code of Regulations Currentness
Title 10. Investment
Chapter 3. Commissioner of Financial Protection and Innovation
Subchapter 2.3. Capital Access Companies
Article 10. Reports to the Commissioner
10 CCR § 280.600
§ 280.600. Financial Statements.
(a) Whenever pursuant to these rules, or pursuant to an order or request of the Commissioner pursuant to the Capital Access Company Law, a financial statement or other report is required to be audited or be accompanied by the opinion of a certified public accountant or public accountant, such accountant shall be independent of the licensee, as determined in accordance with Section 602.02 of Financial Reporting Release Number 1 issued by the Securities and Exchange Commission.
(b) Except as provided in subsection (c), financial statements of a licensed capital access company required pursuant to these rules must be on a combining basis with an affiliate, if the licensed capital access company or such affiliate if the following conditions exist:
(1) The affiliate controls, is controlled by, or is under common control with, the licensed capital access company, either directly or indirectly, and
(2) The licensed capital access company or the affiliate is substantially dependent, either directly or indirectly, upon the other for services or revenue.
(c) Upon written request of a licensed capital access company, the Commissioner may waive the requirement that an affiliate be combined in a financial statement required pursuant to these rules. A waiver will only be granted when the affiliate is operating under an authority granted by a government agency pursuant to which the affiliate is required to submit periodic financial reports in a form prescribed by such governmental agency that cannot practicably be reformatted into the form prescribed by these rules.
(d) When combined financial statements are required by this section, the independent accountant's report or opinion must cover all the entities included in the combined financial statements. If the accountant's report or opinion makes reference to the fact that a part of the examination was performed by another auditor, the plan shall also file the individual financial statements and report or opinion issued by the other auditor.
(e) Licensed capital access companies which have subsidiaries that are required to be consolidated under generally accepted accounting principles must present either
(1) consolidating financial statements, or
(2) consolidating schedules for the balance sheet and statement of operations, which in either case must show the capital access company separate from the other entities included in the consolidated balances.
(f) Annual financial statements filed with the Commissioner pursuant to Corporations Code Section 25501(a) shall include as an attachment to the financial statements fully disclosing all material transactions with affiliates.
Note: Authority cited: Sections 28500 and 29851, Corporations Code. Reference: Section 28501, Corporations Code.
1. New article 10 (sections 280.600-280.605) and section filed 6-24-99; operative 7-1-99 pursuant to Government Code section 11343.4(d) (Register 99, No. 26).
This database is current through 7/29/22 Register 2022, No. 30
10 CCR § 280.600, 10 CA ADC § 280.600
End of Document