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On March 17, 2026, the California Department of Financial Protection and Innovation (“DFPI”) announced that it intends to initiate rulemaking in response to stakeholder comments regarding the Fair Investment Practices by Venture Capital Companies Act (“FIPVCC”). Pending completion of that rulemaking and adoption of final regulations, DFPI stated that implementation and enforcement of the FIPVCC will be suspended.
Firms covered by the FIPVCC will not be required to submit registrations or file reports by the law’s April 1, 2026 deadline. DFPI stated that it expects to begin the rulemaking process later this year and plans to solicit input from venture capital companies, industry associations, founders, investors, and other stakeholders before commencing formal rulemaking. DFPI noted that, once initiated, formal rulemaking must be completed within one year.
The decision to pause implementation pending further rulemaking comes as a welcome development. Industry participants have raised a number of practical questions about how the registration and reporting regime would operate in practice. In addition, if implemented, the law’s reporting framework would require collection and submission of sensitive demographic information that, in many cases, is difficult to obtain while also navigating complex employment and data protection requirements, to the extent those apply.
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