The California Department of Financial Protection and Innovation (“DFPI”) has announced that it will initiate formal rulemaking in response to stakeholder feedback regarding the Fair Investment Practices by Venture Capital Companies Law (“FIPVCC”). As part of this process, the DFPI is suspending implementation and enforcement of the law until final regulations are adopted.

Covered Entities are not required to submit additional registrations or file reports by the previously established April 1, 2026 deadline.

Later this year, the DFPI will begin formal rulemaking to develop statewide regulations that ensure clarity, consistency, and transparency. In advance of that process, the DFPI will actively seek input from venture capital firms, industry associations, founders, investors, and other relevant stakeholders in the coming months.

The DFPI will issue a notice once the formal rulemaking process officially begins. Upon commencement, the DFPI must finalize the rulemaking within one year.

For additional information, please refer to the DFPI’s official website. Our previous coverage of the venture capital company reporting regime can be found here.

Seward & Kissel submitted a request to the DFPI for written guidance on certain aspects of the FIPVCC and intends to continue engaging with the DFPI on behalf of its clients in advance of the DFPI’s formal rulemaking process.

Please contact the attorney below or your primary Seward & Kissel attorney in the Investment Management Group if you have any questions regarding the status of the venture capital company reporting regime or if you would like to engage with the DFPI, directly or indirectly, in advance of formal rulemaking.