The California Department of Business Oversight recently issued its annual Broker-Dealer/Investment Adviser report for the fiscal year ended June 30, 2017.  The DBO reports that it had 3,808 investment adviser firms licensed at year end.  These firms reported nearly 54,000 investment adviser representatives. 

In 2016/2017, the DBO reallocated its resources to increase the number of completed investment adviser examinations.  The DBO expects this trend to continue as it has instituted desk examinations for lower risk firms and has begun sending questionnaires to out-of-state firms.  The DBO also states that it has restructured its exam work modules to streamline examinations.  Of course, consumer complaints and regulatory referrals will likely increase the chances of a visit from the DBO's examiners.

The entire report is available here.