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HomeFinancial CodeDiv. 1.1Ch. 14Art. 4§ 1514 Bank Investment Company Activities

§ 1514 Bank Investment Company Activities

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

§ 1514 Bank Investment Company Activities

This law lets banks sell certain investment products if they follow training and sales rules set by the state.

Key Takeaways

  • •Banks can sell investment products if they meet state training and sales standards.
  • •The products must be from companies that are allowed to sell securities in the state.
  • •Employees must follow the rules set by the Secretary of Business, Consumer Services, and Housing.

Example

A bank employee sells a mutual fund to a customer who wants to invest savings for retirement.

The bank can do this because the employee has completed the required training and follows the state's sales rules.

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

Official Source
View on CA.gov

§ 1514 Bank Investment Company Activities

A commercial bank may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell securities of any investment company which has qualified to sell its securities in this state pursuant to Part 2 (commencing with Section 25100) of Division 1 of Title 4 of the Corporations Code, if the officers and employees of the bank who sell these securities meet such standards with respect to training, experience, and sales practices as established by the Secretary of Business, Consumer Services, and Housing or the secretary’s designee. For the purpose of this section, “investment company” means an investment company as defined in the Investment Company Act of 1940 (15 U.S.C., Sec. 80a-1 et seq.). (Amended by Stats. 2014, Ch. 401, Sec. 26. (AB 2763) Effective January 1, 2015.)

Last verified: January 11, 2026

Key Terms

commercial bankinvestment companyinvestment adviceunderwritedistributesell securitiesPart 2 of Division 1 of Title 4 of the Corporations CodeSecretary of Business, Consumer Services, and HousingInvestment Company Act of 1940

Related Statutes

  • § 1513 Bank Investment Retention Rights
  • § 1460 Bank Asset Borrowing Limits
  • § 1461 Bank Asset Hypothecation Limits
  • § 1462 Bank Borrowing Limits
  • § 1463 Bank Asset Hypothecation Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1514.
View Official Source