Division of Corporations

The Division of Corporations (DOC) licenses and regulates securities brokers and dealers, investment advisers and financial planners, consumer and commercial lenders including mortgage lenders, deferred deposit or payday lenders, escrow companies, and certain other fiduciaries. The DOC also regulates the offer and sales of securities, franchises and off-exchange commodities.

The DOC supervises licensees pursuant to the California Financial Code and California Corporations Code and administrative regulations. The Enforcement Division enforces the laws and regulations administered by the DOC.

Financial Services Division

The Financial Services Division (FSD) licenses and regulates payday lenders, mortgage and other non-bank lenders, mortgage servicers, escrow agents and companies, and other financial service providers.

The FSD is responsible for the regulation of six separate laws:

FSD application and examinations:

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.

Broker-Dealer and Investment Adviser Division (BDIA)

The Broker-Dealer and Investment Adviser Division (BDIA) 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 also licenses capital access companies under the Capital Access Company Law. The DOC supervises licensees pursuant to the California Financial Code and California Corporations Code and administrative regulations. The Enforcement Division enforces the laws and regulations administered by the DOC.

Last updated: Aug 22, 2019 @ 3:03 pm