Implementation of California’s Diversity Reporting Law Is Suspended

Implementation of the Fair Investment Practices by Venture Capital Companies Law (FIPVCC) has been paused pending further rulemaking, according to an announcement on March 17, 2026 by the California Department of Financial Protection and Innovation (DFPI). The law would have required venture capital companies (VCs) to register with the DFPI, survey their portfolio companies regarding the demographics of the founding team members, and submit to the DFPI reports about such demographics and other data about the VCs’ underlying investments. 

The DFPI announcement states that implementation and enforcement of FIPVCC has been suspended. The DFPI will commence a formal rulemaking process later this year and will seek input from VCs and other stakeholders before rulemaking begins.

We encourage all those interested in receiving future updates to subscribe to the DFPI’s email communications. Morgan Lewis lawyers will continue to monitor updates on FIPVCC and will be available to discuss any potential comments once the DFPI issues a request for input from all stakeholders.