Monthly Bulletin – November 2023
Volume 11, Number 4
KC Mohseni Appointed Chief Deputy Commissioner of the Department of Financial Protection and Innovation
KC Mohseni is Chief Deputy Commissioner of the California Department of Financial Protection and Innovation. He was appointed by Governor Gavin Newsom in October 2023 to help oversee the department’s efforts to protect consumers, regulate financial services, and foster responsible innovation.
Chief Deputy Commissioner Mohseni brings experience from more than a decade in leadership roles in the State of California. Most recently, Mohseni served as Chief Operating Officer in the State Controller’s Office from 2022 to 2023. He was Deputy Director of Administration at the California Department of Housing and Community Development from 2020 to 2022, where he managed the department’s growth through nearly doubling its budget and implementing the innovative Homekey and Emergency Rental Assistance flagship programs.
Mohseni was also Project Director for the California Homeless Data Integration System at the California Business, Consumer Services and Housing Agency from 2018 to 2019, and Chief Fiscal Officer at the California Board of State and Community Corrections from 2015 to 2018, where he oversaw the implementation of the Financial Information System for California.
Mohseni is a California native. He earned a Bachelor of Arts degree in Political Science from the University of California, Irvine, and a Juris Doctor degree from the University of California, Davis School of Law.
Governor Newsom Signs AB 39, the Digital Financial Assets Law
Governor Newsom signed AB 39, the Digital Financial Assets Law, on Oct. 13. This legislation creates a comprehensive regulatory framework for many cryptocurrency companies and requires DFPI to license and supervise these businesses operating in California.
DFPI has begun developing a roadmap for implementing this groundbreaking new law that takes effect on July 1, 2025. The Department will share more information as it works toward full implementation.
California will continue to lead by protecting consumers and investors while promoting innovation. The Digital Financial Assets Law will enable DFPI to provide stronger consumer and investor protections to prevent fraud and ensure that bad actors are held accountable.
Time to Renew
2024 Renewal Program Calendar for Broker-Dealers and Investment Advisers
Monday, Nov. 6, 2023 – PRELIMINARY Renewal Statements are available through E-Bill on FINRA.
Monday, Nov. 20, 2023 – DFPI Reminder Emails will be sent to all licensees to renew their license for the calendar year 2024. Licensees should ensure they have an active designated email address on file with the Department. Please refer to the “Broker-Dealer Information” and “Investment Adviser Information” sections on the Broker-Dealer Investment Adviser page for more information about the designated email requirements.
Monday, Dec. 11, 2023 – RENEWAL PAYMENT DUE DATE. This is the DEADLINE for receipt of Preliminary Renewal Statement payments. Review the Renewal Program Payment Options for detailed information. FINRA recommends using E-Bill to pay your Preliminary Statement. If you use other means, submit your payment with additional time to sufficiently allow for mail delivery and/or payment processing to post to your Renewal Account by the deadline. FINRA-registered firms that do not have payment posted by the deadline may be assessed a Renewal Late Fee.
Tuesday, Dec. 26, 2023 – Last Day to submit form filings prior to year-end. Web CRD and IARD are available from 5 AM until 6 PM Eastern Time (ET).
Wednesday, Dec. 27, 2023 – Web CRD and IARD are unavailable due to FINRA statement and renewals processing.
Thursday, Dec. 28, 2023 – Dec. 31, 2023 – Web CRD and IARD are available for QUERY-only and the creation of “Pending” filings.
NMLS License Renewal Began Nov. 1
As of Nov. 1, the Conference of State Bank Supervisors (CSBS) encourages individuals and businesses that provide mortgage, money transmission, debt collection and consumer financial services to renew their annual licenses in the Nationwide Multistate Licensing System & Registry (NMLS).
More than 261,000 mortgage loan originators (MLOs) and companies are licensed to conduct business, accounting for nearly 1.1 million state licenses to be renewed. There are nearly 21,000 more MLOs eligible to renew their licenses than this time last year. In addition, the number of individual state licenses eligible for renewal is 13 percent higher than the same time last year, while the number of company licenses eligible for renewal is up 16 percent compared to this time last year.
Information on NMLS renewal is available on the Annual Renewal page of the NMLS Resource Center (www.nmls.org). To find specific guidance under the California Financing Law, begin by selecting “California” on the State Licensing page and follow the links to the transition checklists for the Financing Law.
Federally registered MLOs and institutions must also renew their registrations via NMLS by Dec. 31. More information for federal registrants is available on the NMLS Federal Registry Resources page.
Education Resources for New Americans
DFPI is pleased to make available resources for new Americans on its website:
- Debt – A Guide for New Americans — introduces new Americans to the concepts of good versus bad debt, building good debt, managing short and long term debt, avoiding scams and checking for licenses.
- Basic Banking and Credit for New Americans (Part One) — covers opening an account at a bank or credit union, safety, accessing funds, earning interest, and building your financial future.
These are the first two articles in a series about resources for new Americans. Forthcoming articles include Inclusive Banking Services for New Americans and Understanding and Building Your Credit in the U.S.
Register for the DFPI’s Shop Smart and Safe Webinar
During this holiday season, it’s crucial to make informed shopping decisions while protecting yourself from scams, fraud, and deceptive business practices.
Join this free webinar, hosted by the DFPI’s Targeted Outreach team, on November 22 at 12 p.m. to learn about online and in-store shopping security, consumer rights, protecting your personal data, mobile app safety, and more! Register for this free webinar.
Student Loan Webinars Nov. 15 and Dec. 6
Nov. 15, 11 a.m. – 12 p.m. | Virtual
Join this free webinar to learn all about you California Student Loan Borrower rights and how to manage disputes. Webinar includes a live Q&A session. Register online.
Dec. 6, 11 a.m. – 12 p.m. | Virtual
Join the DFPI for an informational webinar explaining the Public Service Loan Forgiveness (PSLF) program, how to apply, and learn about important PSLF updates. This webinar will explain PSLF program rules, update you on new requirements, and help you navigate the PSLF application process. Register online.
Final Stages of Proposed Rulemaking: PRO 07/21
The Commissioner of Financial Protection and Innovation is in the final stages of adopting a new regulation under the Corporate Securities Law of 1968 to require investment adviser representatives (“IARs”) to annually complete continuing education requirements. The proposed regulation parallels the Model Rule developed by the North American Securities Administrators Association (“NASAA”). Like NASAA’s Model Rule, the regulation will require IARs to complete twelve total hours of continuing education annually, with six hours focused on Products and Practice and six hours focused on Ethics and Professional Responsibility.
The Notice of Proposed Rulemaking was published in the California Register on December 2, 2022. The 45-day public comment period began on December 2, 2022 and ended on January 16, 2023.
The Department filed the final rulemaking file with the Office of Administrative Law on October 24, 2023. If the rulemaking action is approved by the Office of Administrative Law, the regulation will be operative on January 1, 2024, and investment adviser representatives will be required to meet the minimum continuing education requirements in the 2024 calendar year.
The Notice of Proposed Rulemaking, Text of Proposed Regulations, and Initial Statement of Reasons are posted on the Department’s website and available at https://dfpi.ca.gov/regulations-rulemaking-investment-and-financial-services-laws/law-and-regulations-corporate-securities-law/.
State Bank Regulators Update Ransomware Self-Assessment Tool for Banks
State regulators, in collaboration with the Bankers’ Electronic Crimes Taskforce and the U.S. Secret Service, released an updated Ransomware Self-Assessment Tool (R-SAT) for banks to help mitigate new risks associated with ransomware attacks and identify security gaps.
The new version updates the R-SAT originally released in 2020 due to evolutions in the ransomware threat environment, bad actor tactics and changes in bank environments and controls. The revised R-SAT incorporates insights from cybersecurity experts, feedback from financial institutions and lessons learned from analyzing real-life ransomware attacks.
While financial institutions may have good cybersecurity practices in place, rapid advancements in ransomware techniques and the potentially devastating consequences of a successful attack require every financial institution to review and update their ransomware-specific controls. The updated R-SAT places an increased emphasis on topics such as multi-factor authentication, employee awareness and security training, cloud-based systems or activities, and the identification of control risks that have not been mitigated to an acceptable risk level.
An industry-wide webinar hosted by the Conference of State Bank Supervisors briefed bankers on the updated tool, covering the specific changes to the R-SAT, research and insights from the industry that led to these changes and how banks can most effectively leverage the tool to protect their institution and customers.
State regulators continue to be proactive and adaptive to the needs of the diverse banking system. Updates to the R-SAT 2.0 are yet another example of state regulators empowering their institutions with the tools to ensure our financial system remains safe, sound and resilient.
Visit www.csbs.org/ransomware-self-assessment-tool for more information on the R-SAT 2.0 and how to implement it at your institution.
Commercial Bank Activity
Banc of California, National Association, Santa Ana, to merge with and into Pacific Western Bank, Beverly Hills
Acquisition of Control
Banc of California, Inc. to acquire control of PacWest Bancorp
Premium Finance Company Activity
New Premium Finance Company
3100 W Burbank Boulevard, Los Angeles
Preferred Premium Finance
250 Rincon Street, Corona
Premier Premium Financing Services, Inc.
23276 S. Pointe Dr., Laguna Hills
Acquisition of Control
Golden Oak Cooperative Corporation to acquire control of Birch Financial, Inc.
Change of Name
ETI Premium Finance of California, to change its name to Honor Capital Corporation
Foreign (Other Nation) Bank Activity
Resona Bank, Limited
350 South Grand Avenue, Los Angeles (Representative Office)
Money Transmitter Activity
Nobel Financial, Inc.
CLOTHILDE V. HEWLETT Commissioner, Department of Financial Protection and Innovation
The November 2023 Monthly Bulletin covers the month ended October 31, 2023.
It is issued pursuant to Financial Code section 376.
The Monthly Bulletin is available at no charge via e-mail.
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