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News Release: 01-06
GRAY DAVIS, Governor
Date: 03/28/01
DEMETRIOS A. BOUTRIS, Commissioner
California Corporations Department Conforms State to Federal Law
California Corporations Department Conforms State to Federal Law
Sacramento, March 21, 2001 — California Corporations Commissioner Demetrios A. Boutris today announced the approval of emergency regulations that give investors in California the same protection from charges of insider trading as enjoyed by investors nationally.
In October, the SEC passed a regulation that allows investors to buy or sell their own company’s stock if the transaction is part of a company’s pre-arranged stock-trading program whose instructions predate inside information that may affect the stock price. The emergency regulations introduced by Corporations Commissioner Boutris bring California law into parity with federal regulations.
"If a stock transaction is legal in New York and legal in Nebraska, it should be legal in California," said Corporations Commissioner Boutris. "The new state regulation provides relief to investors and corporations from unnecessary litigation. In short, this regulation ensures that the rule of reason and the rule of law converge."
The Department of Corporations is California's Investment and Financing Authority, reporting to the Business, Transportation and Housing Agency and the Governor. The Department is responsible for the regulation, enforcement and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending and residential mortgage lending. For further information or to obtain a complaint form, see the Department's Web site at www.corp.ca.gov.
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