California Department of Business Oversight
Volume 7, Number 2 – September 2019
- Training Conference Planned for Broker-Dealer Examiners
- CSBS Launches New Fintech Tools for Banking
- Federal Exam Council Encourages Standard Approach to Assess Cybersecurity Preparedness
- Suspicious Emails with DBO Return Address Reported
- Reminder: State Treasurer Time Deposit Program
- Licensee Activity
Training Conference Planned for Broker-Dealer Examiners
The California Department of Business Oversight (DBO), Financial Industry Regulatory Authority (FINRA), and North American Securities Administrators Association (NASAA) are bringing state securities regulators together on September 26 for a joint conference on training for broker-dealer examiners.
This collaborative, one-day event will focus on strategies and solutions to help examiners strengthen their exam skills.
The session will be held at:
Omni Los Angeles Hotel at California Plaza
251 South Olive Street
Los Angeles CA 90012
The conference is free, although attendance is limited to 160 on a first-come, first-served basis. Those who register should receive an email confirmation. Please make sure your registration has been confirmed prior to arrival.
For registration questions, visit the conference page on the FINRA website. FINRA also has posted a brochure including the agenda.
CSBS Launches New Fintech Tools for Banking
The Conference of State Bank Supervisors (CSBS) has launched three new online tools to help the industry navigate the state regulatory system and protect against cyber risks. The tools are:
- A portal of state agency guidance for nonbank financial services companies.
- An interactive map of agent-of-the-payee exemptions from money transmission laws.
- A new cybersecurity 101 resource center for banks and nonbanks alike.
The state regulatory guidance portal will help nonbanks keep up to date with state regulatory guidance.
The interactive map for what are known as agent-of-the-payee exemptions identifies states that do not require a money transmitter license to receive a payment on behalf of a third party. The map includes state-by-state summaries of exemption requirements.
The cybersecurity 101 resource center offers a non-technical guide and related information to help financial institutions develop comprehensive cybersecurity programs.
The tools are part of CSBS Vision 2020, a roadmap of initiatives to modernize nonbank licensing and supervision.
Federal Exam Council Encourages Standard Approach to Assess Cybersecurity Preparedness
On Aug. 28, the Federal Financial Institutions Examination Council (FFIEC) issued a statement emphasizing the benefits of using a standardized approach to assess and improve cybersecurity preparedness.
The council noted that firms that adopt a standardized approach are better able to track their progress over time and share information and best practices with other financial institutions and regulators.
Institutions may choose from a variety of standardized tools aligned with industry standards and best practices to assess their cybersecurity preparedness. These include:
- FFIEC Cybersecurity Assessment Tool
- National Institute of Standards and Technology Cybersecurity Framework
- Financial Services Sector Coordinating Council Cybersecurity Profile
- Center for Internet Security Critical Security Controls
While the FFIEC does not endorse any particular approach, these standardized tools all support institutions’ self-assessment activities. The tools are not examination programs and the FFIEC members take a risk-focused approach to examinations. As cyber risk evolves, examiners may address areas not covered by all tools.
Suspicious Emails with DBO Return Address Reported
On Aug. 30, employees of several licensees informed the Department of Business Oversight they had received suspicious emails with the return address of a department examiner, Haben Hagos.
The DBO conducted an internal investigation and confirmed that the emails contained a link to a website that may contain malicious software or attempt to steal login passwords from visitors. The emails were sent by someone outside the DBO and were crafted to appear to be legitimate emails from the DBO examiner. The DBO regrets any inconvenience this may have caused.
If you receive a suspicious email from the department, do not open it. Please contact ASK.DBO@dbo.ca.gov.
For more information on past alerts please go to the DBO Consumer Alert page.
Reminder: State Treasurer Time Deposit Program
The State Treasurer’s Office (STO) has issued a reminder to commercial banks and credit unions that they can apply to receive funds through the Time Deposit Program administered by the STO. As of June 30, the program had $4.9 billion in deposits with 69 participating financial institutions.
Among its benefits, the program:
- Enables financial institutions that might not otherwise compete for state moneys through other short-term investment options to receive substantial deposits.
- Provides a stable source of funding at attractive rates.
- Is user-friendly, with easy administrative and professional interactions.
- Stimulates growth in small businesses, home mortgages, auto loans, personal loans and other lending throughout the state.
For more information, contact Evelyn Gorman or Sean Collier in the STO’s Investment Division at 916-653-3147 or firstname.lastname@example.org.
Commercial Bank Activity
First State Bank of Colorado, Greenwood Village, Colorado, to merge with and into United Business Bank, Walnut Creek
Rabobank, N.A., Roseville, to merge with and into Mechanics Bank, Walnut Creek
Presidio Bank, San Francisco, to merge with and into Heritage Bank of Commerce, San Jose
Acquisition of Control
US Metro Bancorp, Garden Grove, to acquire control of US Metro Bank, Garden Grove
Premium Finance Company Activity
New Premium Finance Company
Biz Premium Finance Corp.
6200 Canoga Avenue, Woodland Hills
C & A Funding, Inc.
600 West Broadway, San Diego
Mojave Financial Corp.
6200 Canoga Avenue, Woodland Hills
National Premium Finance, Inc.
1081 Westwood Boulevard, Los Angeles
Foreign (Other State) Bank Activity
Boston Partners Trust Company
100 Drakes Landing Road, Greenbrae (Facility – Uninsured Trust Company)
Inland Bank and Trust
52 San Bonifacio, Rancho Santa Margarita (Facility – Insured Bank)
No Objection: 8/16/19
11801 Pierce Street, Riverside (Facility – Insured Bank)
No Objection: 8/14/19
Trust Company Activity
New Trust Company
Peninsula Bay Trust Company
577 Airport Drive, Burlingame
Money Transmitter Activity
New Money Transmitter
PingPong Global Solutions Inc.
MANUEL P. ALVAREZ
Commissioner of Business Oversight
The September 2019 Monthly Bulletin covers the month ended August 31, 2019. It is issued pursuant to Financial Code section 376. The Monthly Bulletin is available without charge via e-mail. To subscribe, go to: https://dfpi.ca.gov/connect-with-the-dbo-via-email/.
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