December 7, 2022

Volume XII, Number 341

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December 06, 2022

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December 05, 2022

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DFPI Empowered To Stop Actions That Are Not Ongoing

In this July post, I noted that " if conduct is not ongoing, it is impossible for someone to discontinue or desist".  The California legislature, however, sees no such logical problem.  Late last month, it enacted and Governor Gavin Newsom signed AB 2433 (Grayson).   Consequently, the Commissioner of the Department of Financial Protection & Innovation will soon have the authority to issue desist and refrain orders even though the activity in question has already stopped.  

According to the Senate Floor analysis, the bill's genesis was two 2020 decisions by Administrative Law Judges finding that the Commissioner lacked the authority to issue desist and refrain orders when the activity is not continuing.  The bill amends Corporations Code Sections 25249, 25250, 25251, 29542, 31406, and 31407 of the Corporations Code and Financial Code Sections 2148, 12307.2, 17415, 17602, 17603, 17604, 22690, 22707.5, 22712, 28158, 28164, 50321, 50322, and 50323.  The bill will take effect on January 1, 2023.

© 2010-2022 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XII, Number 252
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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
Partner

Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...

949-851-5428
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