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ARTICLE · 16 FEBRUARY 2022

DFPI BDIA Examinations Continue To Decline

Allen Matkins Leck Gamble Mallory & Natsis LLP
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The California Department of Financial Protection & Innovation's Broker-Dealer/Investment Adviser (BDIA) program licenses and regulates investment advisers, investment adviser representatives, broker-dealers, and broker-dealer agents.

United StatesFinance and Banking
Keith P. Bishop
Keith P. Bishop

The California Department of Financial Protection & Innovation's Broker-Dealer/Investment Adviser (BDIA) program licenses and regulates investment advisers, investment adviser representatives, broker-dealers, and broker-dealer agents. Over the last three fiscal years,1 the number of investment advisers (IAs) licensed by the DFPI has remained relatively flat. According to this report, in the 2018-2019 fiscal year, the DFPI had 3,729 licensed IAs. In the most recently completed fiscal year (2020-2021), the DFPI had 3,734 licensed IAs. During the last three fiscal years, the number of broker-dealers (BDs) declined approximately 3.6% from 2,674 to 2,578.

While the numbers of licensed IAs and BDs has not changed significantly, the DFPI has completed far fewer examinations. In the 2018-2019 fiscal year, the DFPI completed a total of 1,066 examinations (including 598 by questionnaire). In 2020-2021, the number of completed examinations declined 49% to 546 (including

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