In the state of California, the Securities Regulation Division ("SRD") of the Department of Corporations is responsible for administering the qualification of securities which are offered for sale, as well as the licensing of broker-dealers and investment advisers. Pursuant to the Corporate Securities Law of 1968, all securities that are offered and sold in the state of California must first be qualified by the SRD through an application process, unless they fall within an exemption set out by state law. Likewise, all broker-dealers and investment advisors must be licensed by the SRD in order to do business within the state of California. The SRD also is responsible for regulating other professionals such as financial brokers, real estate brokers, consumer credit counselors, mortgage lenders, and escrow agents. In the event that California broker fraud is suspected, the SRD works with the Enforcement Division to investigate and initiate the appropriate civil, administrative, and/or criminal proceedings.