Broker-Dealers, State Investment Advisers and SEC Investment Advisers

The Broker-Dealer and Investment Adviser Division (BDIA) is an operational division under the California DFPI Commissioner. BDIA is headed by a Deputy Commissioner and is responsible for the licensing and regulation of broker-dealers, broker-dealer agents, investment advisers, and investment adviser representatives pursuant to the Corporate Securities Law of 1968.

BDIA reviews applications for licensure under the California Corporations Code Sections 25210 and 25230 and, if all requirements are met, applicants receive a registration approval. Once an applicant is approved, it is included in the regulatory examination cycle for that industry.

BDIA has regulatory examination authority under California Corporations Code Section 25241 to conduct reasonable periodic, special, or other examinations by the commissioner, of its broker-dealer and investment adviser licensees for the protection of investors and in the public interest. Examinations are conducted at the licensed location. BDIA may also conduct a regulatory examination for cause at any time.

Violations of the laws (California Financial Code , California Corporations Code and the California Code of Regulations) are handled by the Department’s Enforcement Division (ENF). BDIA Division refers violations of the laws and enforcement matters to ENF for appropriate administrative, civil or criminal action.

How to reach us:

Department of Financial Protection and Innovation
Broker-Dealer and Investment Adviser Division
2101 Arena Boulevard
Sacramento, CA 95834
Phone: 916-576-3638
Fax: 916-928-7928

Email:
IAAPP@dfpi.ca.gov
(Application related inquiries)
IAAMEND@dfpi.ca.gov
(Examination and Annual Filing Inquiries)

For the Consumer

• Submit a Complaint
• Check out your Broker-Dealer
• Check out your Investment Adviser

Announcements

• 5/6/2024 – PRO 07-21: Investment Adviser Representative Continuing Education (IAR CE) On May 1, 2024, the Department’s IAR CE rulemaking file was approved by the Office of Administrative Law and filed with the Secretary of State, and became effective immediately. The IAR CE regulation requires that IARs complete twelve credits of continuing education annually, with six credits focused on Products and Practice and six credits focused on Ethics and Professional Responsibility. The 2024 compliance period runs from May 1, 2024 to December 31, 2024. Credits earned at any time in 2024 will be accepted and count toward 2024 compliance. The final text of the regulation and the final statement of reasons are posted on the Department’s website and available here.
• 4/4/2024 – PRO 07-21: Investment Adviser Representative Continuing Education (IAR CE) On March 28, 2024, the Department resubmitted the IAR CE final rulemaking file with the Office of Administrative Law. The proposed regulation implements continuing education requirements for IARs and incorporates the requirements of the Model Rule developed by the North American Securities Administrators Association (NASAA). Like NASAA’s Model Rule, the Department is proposing a requirement that IARs 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 Department expects the IAR CE rule to become effective in May or June and compliance will be required in 2024 and annually thereafter. Credits earned at any time in 2024 will be accepted and count toward 2024 compliance.
• 02/15/2024 – BDIA Online Examination commences April 2, 2024 The Broker-Dealer / Investment Adviser Division is continuing an annual online examination 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. The online examination for this year is scheduled to commence on April 2, 2024. If selected the advisory firm will be notified on April 2, 2024, and required to complete and submit the online examination by May 17, 2024. The Division is structuring the exam to be conducted on this population on a four-year cycle. However, an Investment Adviser may be selected for a future examination sooner or later than the estimated four-year cycle. To communicate the online examination, as well as any follow-up communication, the Division will use the Investment Adviser email as disclosed on the current Form ADV. The business e-mail address must be dedicated to receiving DFPI communications and be monitored by the executive staff of your firm, to ensure prompt attention is paid to communications from DFPI. If you have any questions or inquiries, please contact the Division at CADFPIexams@dfpi.ca.gov.

Archived News

Broker-Dealer Information

• About Broker-Dealers and Broker Dealer Agents
• Broker-Dealer Applications/Forms
• Requirements after a Broker-Dealer Certificate has been issued
• Finders form (AB 667) (PDF)
• Designated Email Address Requirement for Broker-Dealers Effective January 1, 2019, California Financial Code section 331.5 (Authority: SB 1361, Bradford, Chapter 699, Statutes of 2018) requires licensees to establish and maintain an email address for receiving communications and documents from the DFPI. Licensees are required by law to notify the DFPI before changing the designated email address and provide the DFPI with the new designated email address. Broker-Dealers must create a DFPI Self-Service Portal account on the DFPI website in order to report a new designated email address. When updating designated email address, Broker-Dealers must first notify the DFPI by sending an email to ASK.DFPI@dfpi.ca.gov and then update the designated email address through the DFPI Self-Service Portal account. The designated email address:
  1. Must not be an email of any individual employee.
  2. Must be able to receive attachments.

If licensees fail to comply with the designated email address requirements, the licensee may be subject to a fine of up to fifty dollars ($50) per day, not to exceed one thousand dollars ($1,000) in the aggregate.

Investment Adviser Information

• What is a State Licensed Investment Adviser
• What is a Securities and Exchange Commission(SEC) Registered Investment Adviser
• How to Become a California Registered Investment Adviser (PDF)
• Registration and Examination Compliance FAQs (PDF)
• Preparing for a Regulatory Examination (Video-22 min)
• Investment Adviser Application – Did you Know? Things you should know when filing your application for an investment adviser certificate. You should carefully review this page. By filing the proper documents, you will help us to efficiently process your application.
• Investment Adviser – Check List
• Investment Adviser Minimum Financial and Reporting Requirements
• Investment Adviser Post-Effective Requirements – State Licensed
• Investment Adviser Applications & Forms
• Form ADV’s Instructions and Guidance
• Dodd-Frank Wall Street Reform and Consumer Protection Act Information
• Designated Email Address Requirement for Investment Advisers Effective January 1, 2019, California Financial Code section 331.5 (Authority: SB 1361, Bradford, Chapter 699, Statutes of 2018) requires licensees to establish and maintain an email address for receiving communications and documents from the DFPI. Licensees are required by law to notify the DFPI before changing the designated email address and provide the DFPI with the new designated email address. To satisfy these requirements, Investment Advisers must report a valid designated email address on the ADV Forms, Part 1A (Item 1J) and Part 2A (Item 1). Changes to the designated email address must be reported directly through the FINRA/IARD system by updating the ADV Forms, Part 1A and Part 2A. The designated email address must be able to receive attachments. If licensees fail to comply with the designated email address requirements, the licensee may be subject to a fine of up to fifty dollars ($50) per day, not to exceed one thousand dollars ($1,000) in the aggregate.

Investment Adviser Representative Information

• What is a State Licensed Investment Adviser Representative?
• What is a SEC Registered Investment Adviser Representative?
• Investment Adviser Representative Continuing Education (IAR CE)

Check out your Broker-Dealer

• For information regarding broker-dealers, broker-dealer agents and investment advisers call the Department’s Consumer Services Office at (866) 275-2677.
• Check the background of your broker or investment professional by using Financial Industry Regulatory Authority (FINRA) BrokerCheck. FINRA website is also a resource for Investor Alerts and investor education and tools.
• Check out your commodity broker. A free service from the National Futures Association’s Background Affiliation Status Information Center (BASIC). Whether you are an investor thinking about opening a futures account or an NFA Member contemplating a new business relationship, BASIC can be a valuable resource for you. BASIC contains Commodity Futures Trading Commission (CFTC) registration and NFA membership information and futures-related regulatory and non-regulatory actions contributed by NFA, the CFTC and the U.S. futures exchanges.

Check Out your Investment Adviser

Broker-Dealer Application/Forms

Note: Throughout our web pages, reference may be made to the Rules as found in Title 10, Chapter 3, California Code of Regulations (“CCR”). For information concerning the CCR and accessing sections of the CCR referenced on these web pages, go to Assistance page. Any person who intends to become a broker-dealer in California may apply for a broker-dealer certificate by filing an application. If you are a member of the Financial Industry Regulatory Authority (“FINRA”), the application should be filed directly with the Central Registration Depository (“CRD”). If you are not a member of FINRA, the application should be filed directly with the Department of Financial Protection and Innovation. Please review the Information to Assist Persons Applying for a Broker-Dealer Certificate and Instructions for Completing and Filing Form BD in California by Broker-Dealers Not Filing by Notification.

You may also access Broker-dealer Registration Forms electronically on CRD.

Securities and Exchange Commission(SEC) Registered Investment Adviser

Any person registered with the Securities and Exchange Commission (“SEC”) as an investment adviser and who conducts business in California for more than five clients should file a notice with the Department of Financial Protection and Innovation. This notice is to be filed within thirty-(30) days of conducting business in California. Please review the Information to Assist Persons Making a Notice Filing for instructions and additional information in regards to making a notice filing in California.

Note: Reference may be made to the Rules as found in Title 10, Chapter 3, California Code of Regulations (“CCR”). For information concerning the CCR and accessing sections of the CCR referenced on these web pages, click assistance page.

Investment Adviser Applications/Forms

Note: Throughout our web pages below, reference may be made to the Rules as found in Title 10, Chapter 3, California Code of Regulations (“CCR”). For information concerning the CCR and accessing sections of the CCR referenced on these web pages, click assistance page. Any person who wants to become an investment adviser in California may apply for an investment adviser certificate by filing an application. The forms and instructions for filing an application are found below. To begin, please review the Information to Assist Persons Applying for an Investment Adviser Certificate, How to become a California Registered Investment Adviser, and Instructions for Completing and Filing Application for Investment Adviser Certificate on Form ADV.

Test Enrollment Services System (TESS) went live April 2017 as a replacement for the Form U10 process. Individuals who are not on CRD enroll for FINRA, NASAA, MSRB, NFA, FDIC exams and CE sessions via TESS.

You may also access Electronic Filing for Investment Advisers on IARD here.

SB 496 Financial Abuse Report

Broker-Dealers and Investment Advisers are Mandatory Reporters of Elder Abuse

Effective January 1, 2020, SB 496 makes broker-dealers and investment advisers mandated reporters of suspected financial abuse of an elder or dependent adult. In addition, the bill authorizes broker-dealers and investment advisers to notify a previously designated trusted contact of the financial abuse, and temporarily delay a requested disbursement from the victim’s account. The bill also requires broker dealers and investment advisers to notify the Department of Financial Protection and Innovation (DFPI), among other entities, of the suspected financial abuse of elders and notify the DFPI of delayed disbursements. Report suspected elder abuse to the DFPI at SB496ReportsBDIA@dfpi.ca.gov Contact the DFPI by telephone at 916-576-3638 Here is a link to the new full bill: SB 496, Chapter 272, Statutes of 2019.

Annual Reports on Broker-Dealer/Investment Adviser Program

• 02/01/2024 – Annual Report on Broker-Dealer/Investment Adviser Program – 2024 (PDF)
• 09/08/2023 – Annual Report on Broker-Dealer/Investment Adviser Program – 2023 (PDF)
• 01/25/2022 – Annual Report on Broker-Dealer/Investment Adviser Program – 2022 (PDF)
• 01/07/2021 – Annual Report on Broker-Dealer/Investment Adviser Program – 2021 (PDF)
• 03/02/2020 – Annual Report on Broker-Dealer/Investment Adviser Program – 2020 (PDF)
• 01/10/2019 – Annual Report on Broker-Dealer/Investment Adviser Program – 2019 (PDF)
• 01/18/2018 – Annual Report on Broker-Dealer/Investment Adviser Program – 2018 (PDF)
• 01/23/2017 – Annual Report on Broker-Dealer/Investment Adviser Program – 2017 (PDF)