National Supervisory Authority & Licensing Qualification Dossier • North America
DFPI
United StatesCalifornia Department of Financial Protection and Innovation
Source / Native Reference: 加州金融保护与创新部
- Supervisory tier
- Tier-1
- License classes
- 2
- Licensed records
- 1
- Active / regulated
- 1
Statutory Supervisory Mandate & Scope
California Department of Financial Protection and Innovation (DFPI) (DFPI) is the Tier-2 statutory financial markets and securities supervisory authority in United States (California). It grants and supervises financial services licences across broker-dealers, investment advisers, asset managers, and market operators, enforcing initial and ongoing prudential capital requirements, segregated client asset rules, market conduct standards, and public register disclosures.
Prudential Tier Assessment
Tier-1Tier-1 national capital markets, securities, and derivatives supervisory authority in United States, IOSCO member standards-aligned.
National licensing qualifications & statutory authorisation classes (DFPI)
Authorisation categories, permitted institutional and retail activities, minimum initial capital adequacy, and ongoing prudential solvency rules enforced by DFPI in United States.
| License class / code | Official designation | Permitted institutional & retail activities | Minimum initial / base capital | Ongoing prudential & solvency rule |
|---|---|---|---|---|
| Category 1 / Principal Broker-Dealer | Full-Scope Securities & Derivatives Dealer (Market Maker / Principal) | Dealing as principal or market maker in securities, FX, CFDs, futures, options, and underwriting. | USD $500,000 – $1,000,000+ (or EUR €750,000) minimum regulatory capital | Risk-weighted capital adequacy + minimum liquid capital buffer ≥ 25% of annual fixed overheads. |
| Category 2 / Agency Broker & Asset Manager | Securities Brokerage (Agency / STP) & Discretionary Portfolio Management Licence | Order execution, reception and transmission of client orders, discretionary portfolio management, and investment advisory. | USD $150,000 – $250,000 (or EUR €150,000) minimum base capital | Strict client money segregation, best-execution monitoring, and quarterly regulatory financial returns. |
Investor compensation, client money segregation & digital-asset regime
Statutory counterparty protections, custody reconciliation mandates, and virtual-asset licensing status under DFPI.
National Investor Protection / Compensation Scheme (United States)
- Maximum coverage per client
- EUR €20,000 – USD $100,000+ equivalent per eligible retail investor
- Eligible counterparties & scope
- Retail clients of licensed securities and investment brokerage firms.
DFPI Client Money & Safe Custody Segregation Rules
- Reconciliation & audit cadence
- Daily reconciliation of segregated client trust bank accounts against client trading ledger balances.
- Approved custodian requirements
- Client funds and securities must be held in bankruptcy-remote statutory trust accounts at licensed commercial banks or central securities depositories.
DFPI Digital Asset / Tokenized Securities & VASP Regulatory Framework
- Travel Rule, custody & stablecoin rules
- FATF Recommendation 16 Travel Rule enforcement and institutional qualified custody standards.
Primary Governing Statutes & Rulebooks
- Securities and Capital Markets Act of United States
- DFPI Licensing, Prudential Capital Adequacy & Conduct of Business Rules
- Client Money & Custody Asset Segregation Regulations (United States)
- IOSCO Principles of Securities Regulation & National AML/CFT Rulebook
Regulatory Reporting & Audit Obligations
Quarterly capital adequacy returns and annual IFRS audited financial statements submitted to DFPIAnnual independent auditor attestation on Client Money and Safe Custody complianceTransaction reporting, market abuse surveillance (MAR), and AML/CFT suspicious activity reporting
Cross-Border Equivalence & Passporting
Operates under United States national jurisdiction and IOSCO MMoU cross-border supervisory cooperation.
Supervised institutions & DFPI licence records in our database
1 licence record referencing DFPI (1 regulated/registered).
| Institution | Licence number | Status | Licensed legal entity | Effective date | Verification |
|---|---|---|---|---|---|
| Cathay Bank(Global network record) | 960 | Regulated | Cathay Bank | — |
DFPI (United States): institutional licensing & due diligence FAQ
Key statutory capital, compensation, custody segregation, and verification answers for compliance teams.
What are the primary licensing classes and minimum capital requirements under DFPI (United States)?
DFPI (California Department of Financial Protection and Innovation) supervises financial institutions in United States under Securities and Capital Markets Act of United States and DFPI Licensing, Prudential Capital Adequacy & Conduct of Business Rules. Key statutory authorisation classes include: Category 1 / Principal Broker-Dealer (Full-Scope Securities & Derivatives Dealer (Market Maker / Principal) — min. capital: USD $500,000 – $1,000,000+ (or EUR €750,000) minimum regulatory capital); Category 2 / Agency Broker & Asset Manager (Securities Brokerage (Agency / STP) & Discretionary Portfolio Management Licence — min. capital: USD $150,000 – $250,000 (or EUR €150,000) minimum base capital). Ongoing prudential supervision requires strict adherence to capital adequacy and liquidity buffers.
Does DFPI provide statutory investor compensation and mandatory client asset segregation?
Under DFPI's framework, investor protection is governed by National Investor Protection / Compensation Scheme (United States) with maximum coverage of EUR €20,000 – USD $100,000+ equivalent per eligible retail investor (Retail clients of licensed securities and investment brokerage firms.). For client money and custody assets, supervised firms must comply with DFPI Client Money & Safe Custody Segregation Rules, performing daily reconciliation of segregated client trust bank accounts against client trading ledger balances. with client funds and securities must be held in bankruptcy-remote statutory trust accounts at licensed commercial banks or central securities depositories..
How does DFPI regulate digital assets, crypto exchanges (VASPs/CASPs), and stablecoins?
DFPI's digital-asset regime is structured around DFPI Digital Asset / Tokenized Securities & VASP Regulatory Framework (Regulates security tokens, crypto derivatives, and licensed digital asset intermediaries in United States.). Custody and AML/CFT compliance obligations require: FATF Recommendation 16 Travel Rule enforcement and institutional qualified custody standards.
How can I verify an institution's DFPI licence number and check our 1 recorded licence entries?
Our database currently tracks 1 licence record referencing DFPI (1 marked regulated or registered). To verify a counterparty at the primary source, open DFPI's official public register (https://dfpi.ca.gov/), search by the exact reference number and legal entity name, and confirm that the firm's domain and permitted activities match its statutory authorisation.
Related regulatory & market structure briefings
Research and compliance analysis from RegTech Codex relevant to DFPI and United States.
RegTech & Prudential Compliance
European Financial Regulatory Architecture in 2026: DORA ICT Operational Resilience, MiCA CASP Prudential Supervision, and EU AMLA Direct Oversight
A comprehensive statutory compliance briefing analyzing Regulation (EU) 2022/2554 (DORA) ICT incident reporting and TLPT mandates, Regulation (EU) 2023/1114 (MiCA) Class 1-3 CASP and EMT/ART reserve rules, Regulation (EU) 2023/1113 Travel Rule, and Frankfurt AMLA direct supervision.
Regulatory Compliance & Licensing
FATF Travel Rule (Recommendation 16) Cross-Border VASP Compliance, EU AMLR/AMLA Supervision & FCA/MAS Client Asset Segregation Audits: 2026 Codex
Cross-border Virtual Asset Service Provider (VASP) compliance refers to the synchronized execution of cryptographic wire-transfer messaging under FATF Recommendation 16, direct supranational AML supervision under EU Regulation (EU) 2024/1624 (AMLR) and Regulation (EU) 2024/1113 (TFR), and statutory daily client asset segregation reconciliations mandated by the UK FCA CASS 7/CASS 15 and MAS PSN02/CMSA frameworks.
EU MiCA & DORA Compliance
EU DORA & MiCA Compliance Rules: ICT Incident Reporting, CTPP Oversight & CASP Licensing (2026)
The EU Digital Operational Resilience Act (DORA) mandates major ICT incident reporting within 4 hours (Source: Regulation EU 2022/2554, 2025-01-17) and full MiCA CASP authorization by July 1, 2026 (Source: ESMA, 2026-07-01).
EU MiCA & DORA Compliance
EU Digital Operational Resilience Act (DORA) ICT Risk & 4-Hour Incident SLA: Statutory Capital Floors, Prudential Ratios & Licensing Thresholds (4 Hours Major ICT Incident Alert Benchmark)
EU Digital Operational Resilience Act (DORA) ICT Risk & 4-Hour Incident SLA (EU-DORA-2022-2554) stands at 4 Hours (Major ICT Incident Alert) (Source: ESMA / EBA / EIOPA Joint RTS, 2026-10-20), governing initial permanent
Statutory licensing classes, base capital rules, and investor protection summaries for DFPI (United States) are maintained for institutional benchmarking and do not constitute legal advice. Always verify current rulebooks and active firm authorisations directly on DFPI’s official public register.