Exemptions from the Securities Qualification Requirements under California Law

Unless covered by an exemption, securities offerings and sales in California must be qualified by the state. Apart from the standard exemption for covered securities, state- or federally-guaranteed securities, and interests in a national bank or California trust company, California exempts certain offerings based on the offering size, purchasers, offering plan type, and other criteria. This practice note explains these exemptions from qualification: (1) limited offering exemption, (2) small offering exemption, (3) qualified purchaser exemption, (4) exemption for purchase or option plans and agreements, and (5) the recently adopted crowdfunding exemption.

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Related Content

• Announcement of Proposed Offering (Qualified Purchaser Exemption) (CA)
  Announce an offering exempt from qualification because it is restricted to qualified purchasers.

• Cover Letter to First Notice of Transaction (Qualified Purchaser Exemption) (CA)
  File the notice of transaction with the California Department of Financial Protection and Innovation.

• Investor Representation Letter (Qualified Purchaser Exemption; Entity) (CA)
  Collect required representations of qualified purchaser status for an entity.

• Investor Representation Letter (Qualified Purchaser Exemption; Natural Person) (CA)
  Collect required representations of qualified purchaser status for a natural person.

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