California Code, Financial Code - FIN § 30205

Upon the receipt of a proper and complete application for license, and all required fees, the commissioner shall immediately examine and investigate all facts connected with the proposed licensee, including but not limited to its stockholders, directors, officers and managers, and its proposed safeguards with respect to custody, handling, recordkeeping, insurance, and auditing of securities on deposit.  The commissioner may or may not require the applicant to submit to an appropriate hearing.  At such hearing any interested person may show cause either in favor of, or opposed to, the application.