As an administrative standard, the Commissioner generally will deny an application by a licensee for approval to have another person make or keep any of the records of such licensee in a case where it is proposed that the other person provide data processing services for the licensee, unless such other person contracts in writing with the licensee that the other person will, at its expense, have its operations and controls reviewed at least once every 12 months by an independent certified public accountant in accordance with the standards and guidelines of the American Institute of Certified Public Accountants and that the other person will, at its expense, provide a copy of each report of such independent certified public accountant to the licensee.

Note: Authority cited: Section 31101, Financial Code. Reference: Section 31508, Financial Code.

History

1. Change without regulatory effect amending section and adding new Note filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).