August 12, 2022

Volume XII, Number 224

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August 12, 2022

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August 11, 2022

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OAL Approves DFPI Commercial Financing Disclosure Rules - But Who Got Stuck With The Check?

Yesterday, the California Office of Administrative Law approved the Department of Financial Protection and Innovation’s (DFPI) proposed commercial financing disclosure regulations.  The DFPI adopted these regulations pursuant to SB 1235 (Glazer), 2018 Cal. Stats. ch. 1011.  The DFPI's final statement of reasons is available here.  The regulations do not take effect until December 9, 2022.  

The DFPI began the process of writing regulations in 2020.  After publishing its initial rule proposal, the DFPI submitted four proposed modifications of it proposed text for public comment.  This process is not unusual, but it does raise the question about who bore the cost of the rulemaking.  The DFPI is what is known as a special fund department within California government.  This means that it is supported by the fees paid by its licensees.   Many of the DFPI's licensees, however, are not subject to the new law (e.g., depository institutions) or simply do not make loans at all.  These entities should not be saddled with these regulatory costs.

© 2010-2022 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XII, Number 161
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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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