The California Department of Financial Protection and Innovation (DFPI), formerly the Department of Business Oversight (DBO), regulates a variety of financial services, businesses, products, and professionals. The department operates under the California Business, Consumer Services and Housing Agency. The DFPI protects California consumers and oversees the operations of state-licensed financial institutions, including banks, credit unions, debt collectors, nonbank mortgage lenders, student loan servicers, money transmitters, and others. Additionally, the department licenses and regulates a variety of financial businesses, including securities brokers and dealers, investment advisers, payday lenders, certain fiduciaries, and nonbank lenders. The department also regulates the offer and sale of securities, franchises, and off-exchange commodities. , Commissioner Clothilde V. Hewlett leads the department, which has offices in Sacramento, San Francisco, Los Angeles, and San Diego. History The Department of Financial Protection and Innovation has a long history, dating back to the formation of California's first banking department. It became the DFPI in 2020 with the passage of the California Consumer Financial Protection Law (CCFPL). Formation of State Banking Department (1909) and State Corporations Department (1913) In 1909, California passed the Bank Act, creating the State Banking Department. By doing this, California looked to protect depositors and ensure responsible regulation within the banking system. In 1913, the California Legislature enacted the Investment Companies Act, which created the State Corporations Department. The new department was led by a Commissioner of Corporations who released annual reports about the state of the department. Department of Financial Institutions (1997) The Department of Financial Institutions (DFI) became operative on July 1, 1997, and worked to reduce unnecessary regulations and costs for state-chartered banks, credit unions, trust companies, and other licensees formerly regulated by the State Banking Department. The DFI also focused on further regulatory reforms and helped create an environment of innovation within financial institutions. Department of Business Oversight (2013) Effective July 1, 2013, the Department of Corporations (DOC) and the Department of Financial Institutions (DFI) merged to form the Department of Business Oversight (DBO), which reported to a newly formed Business, Consumer Services and Housing Agency. This change was part of Governor Jerry Brown's plan to increase the efficiency and cost-effectiveness of state government. The former DOC and DFI continued to operate as separate divisions within the DBO, enabling the core missions of both departments to continue. All applications, examinations, and reports continued to be processed by the attorneys and staff who worked for