Monthly Bulletin – November 2024

2024-25 Assessment Rate for Banks, Foreign Banks, Trust Companies and Industrial Banks

The base rate for commercial banks, foreign banks, trust companies and industrial banks was set at $2.08 per $1,000 of assets, a $0.32 increase from last year’s rate of $1.76.

Invoices for the 2024-25 annual assessment will be emailed during the week of December 2. Licensees that do not receive their invoices should notify the Accounts Receivable Unit at [email protected] as soon as possible.

Invoices are payable in 30 days, with an additional week allowed for payments made via electronic funds transfers (EFT).

For questions about the calculation of an assessment, please refer to “How to Calculate Your Assessment” or email [email protected] or call 1-866-275-2677 Questions regarding assessment payment processing should be directed to the Accounts Receivable Unit at [email protected].

CCFPL and Expand Consumer Protections

Beginning in February 2025, the California Department of Financial Protection and Innovation (DFPI) will register and regulate debt settlement services, education financing, income-based advances, and student debt relief providers, a major milestone in the implementation of the California Consumer Financial Protection Law (CCFPL). With the approval of DFPI’s first registration regulations under the CCFPL by the Office of Administrative Law, the DFPI will now require providers of the following financial products and services to register and submit data to the Department:

• Debt Settlement Services
• Student Debt Relief Services
• Private Postsecondary Education Financing
• Income-Based Advances (also known as “earned wage access”)

The regulations announced on Oct. 22 require formal supervision and data reporting from four industries not previously registered with the DFPI, which will allow for greater insight into emerging trends and potential risks to consumers.

Financial service providers covered by the new regulations must file an application to register by February 15, 2025, to continue operating legally in the state. More information can be found here. Registration will provide valuable data and insights to help inform changes to consumer protection laws and regulations in the future.

Comments Invited on Further Registration Under the CCFPL

The CCFPL protects consumers from unfair, deceptive, or abusive practices committed by providers of financial services or products. Through regulation package PRO 01-21, the DFPI established new registration and reporting requirements for four previously unregistered financial products and services in California: (1) debt settlement services, (2) student debt relief services, (3) private postsecondary education financing, and (4) income-based advances, including “earned wage access” products.

In furtherance of the CCFPL’s purpose of protecting consumers of financial services and products, the DFPI is seeking input from interested parties on whether consumers would be served by additional industries being subject to registration and reporting requirements under the CCFPL. The invitation, including details on how to submit comments, is available here. Comments are due by Dec. 12, 2024.

DFPI Announces New Web Site

Time to Renew

2025 Renewal Program Calendar for Broker-Dealers and Investment Advisers

Monday 11/11/24 – PRELIMINARY Renewal Statements are available through E-Bill on FINRA.

Monday 11/25/24 – DFPI Reminder Emails will be sent to all licensees to renew their license for the calendar year 2025. Licensees should ensure they have an active designated email address on file with the Department. Please refer to the “For Broker-Dealers” and “For Investment Advisers” sections on the Broker-Dealer Investment Adviser  page for more information about the designated email requirements.

Monday 12/9/24 – 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.

Thursday 12/26/24 – 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).

• Effective May 1, 2024, each investment adviser representative with a full year of registration must annually complete 12 credits of continuing education (six credits of Products and Practice and six credits of Ethics and Professional Responsibility). The continuing education must be completed by the representative and reported by the approved course provider before IARD shuts down for the year on Dec. 26, 2024, at 6:00 pm E.T.

Friday 12/27/24 – Web CRD and IARD are unavailable due to FINRA statement and renewals processing.

Saturday 12/28/24 – Tuesday 12/31/24 – 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).

Information on NMLS renewal is available on the Annual Renewal page of the NMLS Resource Center. 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.

“Volt Typhoon” Cybersecurity Threat Warning for Financial Institutions

According to the heads of the top federal agencies with responsibility for monitoring cyber threats against the U.S., a hacking threat identified as “Volt Typhoon” is the People’s Republic of China’s (PRC’s) state-sponsored cyber group focused on positioning itself inside the computer networks of critical infrastructure to cause destructive or disruptive cyber activity to our country when the PRC chooses. A full description of the threat, including guidance on avoidance and mitigation, is posted to the DFPI website under “Important Notices.”

Claims Portal Open for Money Transmitter Sigue Customers

On March 22, the DFPI announced a consent order with Sigue Corporation (Sigue), a licensed money transmitter operating in the state with its headquarters in Sylmar, Calif. The order required Sigue to cease all money transmission activity in California.

Sigue Consumers with unpaid transactions may now file a claim with Instructions here: Information for Customers of Sigue Corporation. The information is also available in Spanish (Información para los clientes de Sigue Corporation – DFPI).

The DFPI Consumer Services Office (CSO) is also sending out letters to known Sigue customers detailing claims information.

As of March 13, 2024, the company reported 8,232 unpaid money transmission transactions in California, totaling more than $1.7 million.

California law (Financial Code section 2037) requires all licensed money transmitters to maintain surety bonds, or other cash and/or securities, to cover potential claims against the licensee by California consumers who have transactions that are unfulfilled by the licensee. This allows the public to receive a refund for any unpaid transactions should the money transmitter fail to comply with the law.

California Department of Public Health Hemp Ban

On Sept. 23, 2024, the California Department of Public Health (CDPH) issued emergency regulations prohibiting the sale of hemp-derived food, beverage, and dietary products containing any detectable amount of tetrahydrocannabinol (THC), the active ingredient in cannabis.  The regulations are discussed on the CDPH website linked below:

• California’s Ban on Intoxicating Hemp Products Now in Effect
• DPH-24-005E Emergency Regulations for Serving Size, Age, and Intoxicating Cannabinoids for Industrial Hemp

The DFPI recommends that depository licensees conduct a thorough review of their customer base to identify any individuals or entities subject to the CDPH regulations.  Should any such customers be identified, appropriate due diligence and risk assessments should be conducted.  For additional guidance, please consult your legal advisors.

Updated CSBS Nonbank Ransomware Self-Assessment Tool

The Conference of State Bank Supervisors (CSBS), partnering with the U.S. Secret Service (USSS) and the Bankers Electronic Crimes Task Force (BECTF), issued on Oct. 18 an updated self-assessment tool to help nonbank financial institutions assess their efforts to mitigate risks associated with ransomware and identify security gaps.

The updated Nonbank Ransomware Self-Assessment Tool (R-SAT), originally released in 2020, includes insights from cybersecurity experts and feedback from financial institutions. The updated R-SAT also includes lessons nonbank institutions have learned from real-life ransomware attacks, including the value of multi-factor authentication, the importance of managing social media during incidents, and the need for understanding cloud-based storage and services.

Upcoming Consumer Education Events

Each month we educate consumers through community events and a monthly consumer financial education webinar.

Scams and Frauds that Target Young Adults webinar

Dec. 4, 12 – 1 p.m. | Virtual 

Although younger, digital savvy consumers may be adept at using the Internet, TIME reported that Generation Z is more than three times as likely as Baby Boomers to fall for scams. Join this webinar to learn how to protect yourself, your loved ones, and young adults from fraud, scams. Topics will include identity theft, data breaches, investment apps, and employment scams. Everyone who registers for this webinar will receive a link to the recording and the presentation slides. Register online.

Understanding the Public Service Loan Forgiveness Program (PSLF)
Dec. 9, 12 – 1 p.m. | Virtual 

On Dec. 9, the DFPI will host a webinar on the Public Service Loan Forgiveness (PSLF) program with the Federal Student Aid. Join this webinar to get a comprehensive overview of the PSLF program, including eligibility requirements, application processes, and recent program updates. Registration.

Protect Yourself from Fraud webinar

Dec. 11, 12 – 1 p.m. | Virtual 

On Dec. 11, the DFPI will host a webinar on how to identify, avoid, and respond to falling victim to financial frauds and scams. Registration TBD.

LICENSEE ACTIVITY

Commercial Bank Activity

Merger

1st Capital Bank, Salinas, to merge with and into Santa Cruz County Bank, Santa Cruz
Effected: 10/01/24

Sale of Partial Business Unit

Bank of Hope, Los Angeles, California to sell the banking businesses of its Annandale and Centreville, Virginia branches to PromiseOne Bank, Duluth, Georgia
Effected: 10/01/24

Credit Union Activity

Merger

Bourns Employees Federal Credit Union, Riverside, to merge with and into
Arrowhead Central Credit Union, Rancho Cucamonga
Approved: 10/01/24
Effected: 10/01/24

Change of Name

California Agribusiness Credit Union, to change its name to Center City Community Credit Union
Effected: 10/17/24

First Imperial Credit Union, to change its name to Corazo Credit Union
Filed: 10/08/24

Foreign (Other Nation) Bank Activity

Discontinuance

BNP Paribas
To discontinue the Wholesale Branch at 180 Montgomery Street, San Francisco, and to establish a Representative Office at the same location
Filed: 10/14/24

Foreign (Other State) Bank Activity

Discontinuance

Emigrant Bank
8730 West Sunset Boulevard, West Hollywood (Facility – insured bank)
Notified: 9/19/24

Toyota Financial Savings Bank
1900 South State College Boulevard, Anaheim, Orange County (Facility – industrial bank)
Discontinued: 12/31/17

Money Transmitter Activity

New Transmitter

Hopper Money (USA), Inc.
Approved: 10/04/24

Ramp Payments Corporation
Opened: 10/31/24

Acquisition of Control

Corpay, Inc., to acquire control of GPS Capital Markets, LLC
Approved: 10/03/24