The sponsor and each person selling program interests on behalf of the sponsor or program shall make every reasonable effort to assure that the persons being offered or sold program interests, by reason of their educational, business, or financial experience, can be reasonably assumed to have the capacity to understand the fundamental aspects of the program and meet the suitability standards imposed. The sponsor or its representatives shall ascertain that the investor can bear the economic risk of an investment in the program and that the program interests are appropriate for the investor's investment objectives, portfolio structure, and financial situation.

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

History

1. Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No. 4).

2. Renumbering of former section 260.140.112.2 to section 260.140.112.3 and new section filed 5-18-92; operative 6-17-92 (Register 92, No. 22).