Department of Banking outlines package of securities and consumer-credit changes, seeks new enforcement authority

Department of Banking officials told the Banking Committee the agency is asking lawmakers to approve a range of technical and substantive changes to state securities and consumer-credit law.

My name is Matt Smith, Director for Government Relations and Consumer Affairs at the Department of Banking, said the agency is presenting multiple proposals, including HB 6,875 under the Connecticut Uniform Securities Act and provisions in Senate Bill 12-57 affecting consumer credit and commercial financing. "This proposal...creates a state broker-dealer registration exemption for merger and acquisition broker dealers..." Smith said, adding the proposal would also authorize a $250 notice-filing fee for Tier 2 securities offerings and new enforcement tools for securities violations.

The department told the committee the measures are meant to align state law with federal standards and other states, reduce regulatory friction and fill enforcement gaps. Smith said the Tier 2 notice-filing fee mirrors a common state practice; the department receives roughly "20 to 60 notice filings each year" and proposes a $250 fee to match the majority of other states. He also described a proposal to give the banking commissioner authority to "censure or bar a registered broker-dealer, agent, investment adviser, or an investor advisement agent based upon the grounds enumerated in Section 36b-15a," subject…