Financial Services Division

The Financial Services Division (FSD) is one of three operational divisions under the California Corporations Commissioner. FSD is headed by an Assistant Commissioner and is responsible for the regulation of six separate laws.

The laws under FSD's responsibility are:

FSD reviews applications for licensure under the laws and, if all requirements are met, companies receive a license. Once a company is licensed, it is included in the regulatory examination cycle for that industry.

FSD regulatory examination cycles vary from one year to four years and are conducted at the licensed location. Criteria has been established for each type of license in order to determine the company's compliance with laws and regulations and the financial stability of the business. Analysis of financial information is also performed by FSD to determine whether special examinations are required and to closely monitor problem companies. FSD may also conduct a regulatory examination for cause at any time.

Violations of the laws (California Financial Code and the California Code of Regulations) are handled by the Department's Enforcement Division (ENF).

FSD also works with the United States Attorney's office and the Department of Housing and Urban Development in the regulation of lenders and independent escrow agents.

FSD staff also utilizes the informational resources of the National Association of Consumer Credit Administrators to assist in the regulation of lenders.