Professional fiduciaries.

Assembly Member Flora's legislation to modernize California's professional fiduciary regulations would allow licensed fiduciaries to organize as professional corporations while establishing new oversight requirements. The bill amends multiple codes to incorporate professional fiduciary corporations into existing regulatory frameworks.

Under the proposed changes, licensed professional fiduciaries could form corporations to provide fiduciary services, subject to requirements that all directors, shareholders, officers and employees holding fiduciary roles maintain active licenses. These corporations would operate under both the Moscone-Knox Professional Corporation Act and new provisions in the Business and Professions Code.

The legislation creates comprehensive reporting obligations for fiduciary corporations, including regular disclosure of client information, case details, and aggregate managed assets to the Professional Fiduciaries Bureau. While some data would be publicly accessible, the bill restricts disclosure of sensitive client information. Corporations must specify which licensed fiduciary has primary responsibility for each case.

The Professional Fiduciaries Bureau would gain authority to regulate these corporations, promulgate relevant regulations, and take disciplinary action for non-compliance. Superior courts could only appoint professional fiduciary corporations that meet licensing requirements and properly identify the responsible licensed fiduciary for each matter.

By expanding organizational options while maintaining oversight, the bill aims to preserve accountability as the profession evolves. The changes would take effect within existing regulatory timelines, with current Professional Fiduciaries Act provisions remaining in force until 2028.