Monthly Bulletin March 2026

DFPI News

Heightened Cyber Awareness

FBI counterterrorism and counterintelligence teams remain on high alert worldwide, following the ongoing situation in the Middle East. All institutions are encouraged to maintain a high level of awareness as the situation overseas continues to unfold. 

 Based on historical data, counterintelligence organizations warn of potential activities, including cyberattacks and malicious insider activity. This has the potential to seriously disrupt commerce and everyday activities. Although we are not aware of a specific threat, the DFPI has contacted its licensees and registrants about this. If you experience a cybersecurity incident, please report it to the relevant authorities and let DFPI know by completing this form. 

DFPI Joins Attorney General to Oppose Federal Escrow Proposal

We joined Attorney General Rob Bonta and a bipartisan coalition of 23 Attorneys General to oppose federal rules that would block California’s law requiring banks to pay interest on mortgage escrow accounts. If adopted, the proposal could harm millions of Californians — including people still recovering from last year’s LA wildfires. Read the DFPI’s comments opposing the proposal.

3 New Consumer Alerts

WhatsApp Imposter Posing as California-Licensed Investment Adviser – An individual calling himself Professor Jake Civiello is falsely posing as a California-licensed investment adviser. He runs a WhatsApp group called VIP Guidance Group, which is not connected to any licensed investment adviser or broker-dealer in California.

Coinme Enforcement Order – We ordered Coinme, one of the largest crypto kiosk operators in the state, to refund an additional $175,000 to California consumers who were unlawfully overcharged. This builds upon a previous enforcement action against Coinme in June 2025.

Unchained Enforcement Action – Unchained, a crypto lender, will pay a $200,000 fine for violating the California Financing Law (CFL). The company was found issuing risky bitcoin-based loans in California and failing to consider borrowers’ ability to pay them back.

Applications for the 2026-28 CalMoneySmart Grant Program Open on March 30, 2026

The DFPI will accept applications for the 2026-28 CalMoneySmart Grant Program from March 30 through April 27, 2026. Additional information regarding eligibility, application instructions, and previous program years is available on the DFPI CalMoneySmart webpage.

CalMoneySmart supports nonprofit organizations that deliver free, high‑quality financial education and empowerment services to underserved Californians. The program has awarded more than $10 million in grants to help expand financial literacy across the state.

Digital Financial Assets News

Digital Financial Assets Law (DFAL) License Applications Open in a Few Days

Starting this Monday, on March 9th, the DFPI will begin accepting online license applications from companies or individuals offering certain crypto-related activities to California residents.

By July 1, 2026, any individual or company offering certain crypto-related activities for or on behalf of California residents must either hold a DFAL license, have applied for a DFAL license, or be otherwise exempt from DFAL licensure. This includes crypto exchanges, crypto custodians, and crypto kiosks.

You will be able to apply for the license via our website, but please note that your application involves using the NMLS system.

On March 23, the DFPI has arranged a training webinar to equip potential applicants on how to establish and navigate an NMLS account. It will also cover how to avoid common mistakes when completing a DFAL application.

If you are required to obtain a DFAL license by July 2026, you are strongly encouraged to attend the March 23 webinar at 12:00 PM Pacific time. You can register for the training here.

The DFPI will hold virtual office hours for potential applicants on March 10 and 17.

If you have any questions about the application process, please contact [email protected].

Applications for a DFAL license open on March 9, 2026 through the Nationwide Multistate Licensing System (NMLS).

Escrow News

Some Escrow Annual Reports Due March 16

Escrow agents are required to submit to the Commissioner of the DFPI an annual report prepared by an independent certified public accountant (Financial Code section 17406) within 105 days after the close of the escrow agent’s fiscal year. The annual report should include audited financial statements and required supplemental information.

If your fiscal year ended on November 30, 2025, your annual report is due by March 16, 2026. Please have your CPA email your report to [email protected] by the deadline using a secure, encrypted delivery system. The use of a secure Dropbox is also acceptable. If your CPA is unable to submit the annual report electronically, it can be mailed to Stephanie Yoro, Office Technician, Escrow Law, Department of Financial Protection and Innovation, 320 West Fourth Street, Suite 750, Los Angeles, CA 90013.

Failure to file the annual report by the due date or to include the required information may result in a $100 fine per day for the first five days a report is late and $500 per day thereafter (Financial Code section 17408). It may also result in the suspension or revocation of an escrow agent’s license or prompt an immediate examination (Financial Code section 17602.5). For questions about the annual reports, email [email protected].

Escrow Assessment Clarification for Licensees

To ensure clarity for all escrow licensees, the DFPI is providing additional explanation regarding the timing of the new annual Escrow assessment rate. The DFPI’s fiscal year runs from July 1 through June 30.  

 Each May, the DFPI issues annual assessment invoices for the upcoming fiscal year that begins on July 1. Given this, the invoices that licensees will receive in May 2026 are for the 2026–27 fiscal year.  

 Read the full details in our January issue. 

Broker-Dealers & Investment Advisers News

BDIA Online Examinations Start on April 2, 2026

The Broker-Dealer / Investment Adviser Division is initiating its annual online examinations for certain registered investment advisers, in accordance with DFPI’s authority under California Corporations Code Section 25241, subdivision (c). This mandatory examination consists of an online examination for investment advisers registered with the DFPI, who have their principal place of business in another state.

This year’s exam is scheduled to start on April 2, 2026.

The DFPI will use the investment adviser’s business email address disclosed on Form ADV for all communications about the online exam and follow-up communications. Please ensure that this email address is accurate, monitored by the executive staff of the firm, and dedicated to receiving DFPI communications.   

If you have any questions or inquiries, please contact us at [email protected].

Investment Adviser Filing Deadlines

• Each year, an investment adviser (IA) must file an annual updating amendment to Form ADV [Section 260.241.4]. This amendment should be filed with Investment Adviser Registration Depository (IARD) within 90 days of the firm’s fiscal year-end. Firms must also amend Form ADV (Parts 1 and 2) whenever the information in Form ADV becomes inaccurate. Please refer to Form ADV General Instructions, Item 4, for further clarification.Form ADV must contain current and accurate information, including a current e-mail address. The DFPI uses this e-mail address to keep you informed of current issues and developments.
• If an investment adviser (IA) is subject to the minimum financial requirements (Section 260.237.2), the firm must submit an annual financial report to the DFPI Commissioner within 90 days after the firm’s year-end. This report should accurately reflect the firm’s financial condition.The annual financial report must contain a Statement of Financial Condition prepared in accordance with generally accepted accounting principles (GAAP) and computations of the minimum financial requirements required under Section 260.237.2. Firms may use the Minimum Financial Requirements Worksheet for the computations of the minimum financial requirements.

  If an IA held or accepted custody of funds and/or securities for, or owed money or securities to customers or clients during the period covered, the firm must file audited financial statements prepared by an independent certified public accountant. If your firm has discretionary authority over client funds or securities, the financial report need not be audited.

  A verification form must accompany the financial report. It must affirmatively state, to the best of the knowledge and belief of the person making the verification, that the financial statements and supporting schedules are true and correct, and must be signed to indicate that the information provided is accurate. Please use the Verification Form Pursuant to Section 260.241.2(b) for this purpose.

  Financial reports should be emailed to [email protected].

Mortgage News

Submit Holden Act Reports by March 31, 2026

Mortgage lending licensees must file their Residential Mortgage Loan Report (Holden Act Report) for calendar year 2025 no later than March 31, 2026.

The report must be filed by all state-licensed residential mortgage lenders that do not report the data to a federal or state regulatory agency, as provided by the Home Mortgage Disclosure Act of 1975.

Licensees should consult their internal compliance officers to determine whether they are required to file the report. Instructions and reporting forms are available on the DFPI website here.

Completed reports may be scanned and emailed to [email protected] on or before March 31.

Consumer Financial Protection News

Reminder: Submit CCFPL Annual Reports by March 15, 2026

Every registrant under the California Consumer Financial Protection Law (CCFPL) is required to submit an Annual Report to the Commissioner of the DFPI by March 15, 2026. This is the same deadline as submitting a Commercial Financing Annual Report.

See our December Bulletin for more information.

Debt Collection News

Reminder: DCLA Annual Report Due by March 16, 2026

All licensees under the Debt Collection Licensing Act (DCLA) that were licensed before January 1, 2026, must submit an annual report by March 16, 2026. For questions about the content of the report or clarification on the instructions, please email [email protected].

Upcoming Consumer Education Event

Every month, we educate consumers through community events and a monthly webinar.

This month, join Student Loan Ombudsmen and Advocates from multiple states, including California, Connecticut, and Washington, in our webinar:

Navigating the Future of Student Loans: Insights from State Ombudsmen and Advocates Webinar

March 18, 12 – 1 p.m.

Learn the latest on federal student loans and vital borrower resources. Topics include borrower rights, repayment plans, new borrowing limits, Public Service Loan Forgiveness (PSLF), default management, and more.

Register here.