California warned CIBC World Markets and two other investment banks Tuesday that they must comply quickly with a code of financial conduct or be suspended from doing business with the state.

State Treasurer Phil Angelides said the investment banking arm of CIBC, as well as Edward Jones and Wedbush Morgan Securities, will be barred from doing business with California unless they can certify by March 31 that they are in compliance. The state’s so-called investment protection rules, which began to be instituted in mid-2002, “have set new market standards for investment banks,” Angelides said in a statement.

“These standards will help put an end to the destructive marketplace abuses that have rocked our nation’s financial markets and left taxpayers and investors to pick up the pieces.”

Angelides’s office said 41 investment banks have already complied with the regulations.

According to the California Treasurer’s office, CIBC World Markets has participated in underwriting syndicates that have moved more than $26.2 billion in state bonds since January 1999.

During that time, CIBC has conducted more than $6.2 billion worth of securities transactions with the Treasurer’s office.

CIBC spokesman Stephen Forbes said the bank is confident it will meet the California requirements by the March 31 deadline.

“We are in full compliance with all legal and regulatory requirements, both federal and state,” he said.

“In addition, we are working to ensure that we meet the terms set out by state of California, that are not law but mandatory for doing business with the state of California.”

CIBC shares slipped 5¢ Tuesday to close at $69.22.