Monthly Bulletin May 2026

DFPI News

DFPI Cybersecurity Webinar on May 13, 2026

The DFPI invites you to attend a cybersecurity webinar on Wednesday, May 13, 2026, at noon (PT), aimed at helping you strengthen your defenses against ransomware, AI-powered attacks, and other cyberthreats.

The webinar will feature Chris Calley, Special Agent at the FBI, San Francisco, and Erin Rodriguez, Principal Intelligence Specialist from the Financial Intelligence Unit at (Financial Industry Regulatory Authority) FINRA.

Please register in advance.

DFPI Secures First Ruling Upholding CCFPL Enforcement

The DFPI obtained its first administrative decision affirming a California Consumer Financial Protection Law (CCFPL) action, brought against Career Excel LLC (Professionstar). The ruling confirmed that the CCFPL jurisdiction covers violations of California and federal laws involving debt collection, debt settlement, and credit repair services, as well as deceptive acts that harm California consumers. It also allows the DFPI to seek substantial penalties and ancillary relief.

 Professionstar was found to have engaged in unlawful and deceptive debt collection, debt settlement, and credit repair activities against Californians from January 2021 through at least January 2025. On January 17, 2025, the DFPI issued a desist and refrain order, a claim for ancillary relief (including rescission and refunds), and an order assessing $150,000 in penalties.

Two New Consumer Alerts

• Two WhatsApp groups — Freckie Capital and FRK Strategic Partner VIP3 — falsely posing as licensed broker-dealers and urging consumers to download an app called “Bosonic.” Bosonic Securities, LLC, a California-licensed broker-dealer firm, is not associated with these WhatsApp investment groups or the Bosonic app.
• An imposter is contacting consumers through text messages and messaging platforms, such as Telegram and WhatsApp, while falsely claiming to be Douglas Boneparth, a licensed Investment Adviser representative. The imposter attempts to persuade consumers to open accounts on the financial services platforms Uphold and Equator to invest in cryptocurrencies. Neither Douglas Boneparth or his Registered Investment Adviser firm, Bone Fide Wealth, recommends these platforms or conducts advisory business through Telegram or WhatsApp.

Legal News

VCC Law Implementation and Enforcement Suspended pending Rulemaking

Implementation and enforcement of the Fair Investment Practices by Venture Capital Companies Law (FIPVCC) is suspended pending completion of the rulemaking and until final regulations are in place. The DFPI will not require covered entities to submit further registrations or file reports by the April 1, 2026, deadline.

The DFPI will begin the rulemaking process later this year to craft statewide regulations for the law with the goal of promoting clarity, collaboration, and transparency. To maximize stakeholder engagement, the DFPI will seek input from venture capital companies, industry associations, founders, investors, and other relevant parties over the upcoming months before beginning formal rulemaking. The DFPI will notify registrants and subscribers when that occurs. For more information, visit the DFPI website.

Broker-Dealers & Investment Advisers (BDIA) News

Take the BDIA Cybersecurity Questionnaire

This month, the BDIA Division is initiating a cybersecurity questionnaire as part of its regulatory examinations. The questionnaire will help both the DFPI and its licensees assess cybersecurity risks, response capabilities, and internal procedures. BDIA licensees should complete the questionnaire as part of their examination process.

By understanding each institution’s security practices, the DFPI can better identify vulnerabilities, strengthen safeguards, and help licensees improve their overall cyber readiness. This effort reduces the likelihood and impact of cybersecurity threats, protecting California businesses and consumers.

Please direct any questions to [email protected].

Amendments to Form ADV Due within 90 Days of Fiscal Year End

Each year, Investment Adviser firms must file an annual updating amendment to Form ADV (California Code of Regulations Title 10. Section 260.241.4). This annual updating amendment should be filed with IARD within 90 days of a firm’s fiscal year end. Firms must also amend Form ADV (Parts 1 and 2) whenever the information in Form ADV becomes inaccurate. Firms may refer to Form ADV General Instructions, item 4, for further information.

It is important that Form ADV contains current and accurate information. Further, firms should ensure that the contact person’s e-mail address is correct as this e-mail address is used to keep the firm informed of current issues and developments.

Please direct any questions to [email protected].

Financial Filing Requirements – Annual Reports Due 90 Days after Year-End

If an Investment Adviser firm is subject to the minimum financial requirements of the California Code of Regulations (CCR) Title 10. Section 260.237.2, the firm must file with the DFPI Commissioner, not more than 90 days after firm’s year-end, an annual financial report that reflects firm’s financial condition. The annual financial report must include a balance sheet and an income statement prepared in accordance with generally accepted accounting principles and computations of the minimum financial requirements as required under CCR Title 10. Section 260.237.2. Firm may use the Minimum Financial Requirements Worksheet for the computations.

If a firm has held or accepted custody of funds and/or securities for or owe 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 or independent public accountant. If firm only has discretionary authority over client funds or securities, the financial report does not need to be audited.

A verification form must accompany the financial report. The verification form must affirmatively state, to the best knowledge and belief of the person making the verification, that the financial statements and supporting schedules are true and correct and must be signed under penalty of perjury. Firm may use the Verification Form Pursuant to Section 260.241.2(b) for this purpose.

Please direct any questions to [email protected].

BDIA Online Examinations Response Deadline is May 18, 2026

The BDIA Division initiated its annual online examinations for certain registered investment advisers, in accordance with DFPI authority under California Corporations Code Section 25241, subdivision (c) on April 2, 2026. 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.

For licensees selected to participate in the online examination process, responses are due by May 18, 2026.

Please direct any questions to [email protected].

Credit Unions News

California Executive Forum on June 10, 2026

Join the National Association of State Credit Union Supervisors (NASCUS) and California’s Credit Unions on June 10, 2026, for a California Executive Forum with industry leaders, system stakeholders, credit unions, and board members.

Explore and discuss the pressing issues facing the industry today. Expand your network, gain insights into solutions for evolving challenges, and engage in collaborative discussions on the future of the state system. This is an in-person event. See details in the April Monthly Bulletin and register for the event.

Digital Financial Assets News

Application Portal Open for Crypto Company Licensing

The DFPI continues to accept 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 Digital Financial Assets Law (DFAL) license, have applied for a DFAL license, or be otherwise exempt from DFAL licensure. This includes crypto exchanges, crypto custodians, and crypto kiosks. View details in the March Monthly Bulletin.

Escrow News

Some Escrow Annual Reports Due May 18, 2026

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

For fiscal years ending on January 31, 2026, the annual report is due May 18, 2026. CPAs should email reports to [email protected] by the deadline using a secure, encrypted delivery system. The use of a secured Dropbox is also acceptable. If CPAs are 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.

Penalties for failure to file the annual report by the due date or to include required information are $100 per day for the first five days a report is late and $500 per day thereafter (Financial Code section 17408). Failure to file a report or to include any required information 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 more in the January Monthly Bulletin.