1. (a) In this Section:

   1. (1) “Subject person,” when used with respect to a licensee, means:

      1. (A) Any individual who controls the licensee;
      2. (B) Any person (other than an individual) which controls the licensee or which otherwise is an affiliate of the licensee (including, in case any such person consists of a group of persons acting in concert, each person who is a member of such group); or
      3. (C) Any director, officer, or employee of such licensee or of any affiliate of the licensee.
   2. (2) “Reporting subject person,” when used with respect to a licensee, means any subject person of such licensee who is a director, officer, employee, or affiliate of the licensee.

2. (b) Whenever a licensee or any subject person of a licensee is arrested for, or charged by complaint, information, or indictment with, a crime against the licensee or any affiliate of the licensee, a crime relating to the business of the licensee or of any affiliate of the licensee, or a crime involving an act of fraud or dishonesty, the licensee and, in case the subject person arrested or charged is a reporting subject person, such reporting subject person shall promptly file with the Commissioner a report containing the following information:

   1. (1) State the name of the person arrested or charged, and, unless such person is the licensee, describe the relationship of the person with the licensee.
   2. (2) State the date on which the arrest was made or the charge was issued.
   3. (3) State the name and address of the arresting or prosecuting agency.
   4. (4) State the date on which the crime is alleged to have been committed.
   5. (5) Describe the circumstances of the alleged crime.
3. (c) Whenever any criminal proceeding of the type referred to in Subdivision (b) of this Section is concluded, the licensee and, in case the person arrested or charged is a reporting subject person, such reporting subject person shall promptly file with the Commissioner a report identifying the proceeding and describing the conclusion of the proceeding.

Note: Authority cited: Section 31101, Financial Code. Reference: Section 31506, 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).