The Department of Business Oversight (DBO) is getting a facelift.
Governor Gavin Newsom signed A.B. 1864 into law on September 25, 2020 to revamp and modernize the DBO. The transition begins with a name change aimed at cementing its position as a leading financial regulator and model for consumer protection.
The bill, also known as the California Consumer Financial Protection Law (CCFPL), renames the DBO the Department of Financial Protection and Innovation (DFPI), effective September 29, 2020. But this is only the tip of the iceberg.
Beginning January 1, 2021, the new law expands DFPI powers to protect California consumers from pandemic-inspired scams and allows some regulatory federal agencies to step back, including the Consumer Financial Protection Bureau (CFPB).
Further, the DFPI will:
- expand the state’s consumer protection capacity by adding additional investigators and attorneys to supervise financial institutions and crack down on financial predators;
- create a team to monitor financial markets to identify emerging risks to consumers;
- create a team committed to consumer education, outreach, listening and responding to consumers in specific communities; and
- implement a new Office of Financial Technology and Innovation, dedicated to cultivating financial technology to serve consumers.
first tuesday will continue to follow the DFPI’s progress toward these goals.
