§ 25249 Broker-Dealer Violation Orders

Corporations Code·California

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Key Takeaways

•If a stockbroker or financial advisor breaks the rules, the boss (commissioner) can tell them to stop right away.
•The boss writes an order to stop the bad behavior immediately.
•The order starts working right away but isn’t final until more steps are done (like a review).

Example

A stockbroker is lying to people about how much money they can make from an investment.

The boss finds out and writes an order telling the broker to stop lying immediately. The order starts right away, but the broker can still argue their side later.

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

Official Source

View on CA.gov

§ 25249 Broker-Dealer Violation Orders

If, after examination or investigation, the commissioner has reasonable grounds to believe that any broker-dealer or investment adviser is violating or has violated any law or rule binding upon it, the commissioner shall, by written order addressed to the broker-dealer or investment adviser, direct the discontinuance of the violation. 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. 1. (AB 2433) Effective January 1, 2023.)

Last verified: January 23, 2026

Key Terms

broker-dealer investment adviser written order discontinuance of the violation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 25249.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References