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Kansas banking regulator cites "significant and repeated" statutory violations at BFF, proposes corrective action
Summary
Kansas Bank Commissioner David Herndon told the Joint Committee on Fiduciary Financial Institutions Oversight on Nov. 7 that his office's July 23, 2025 examination of Beneficient Fiduciary Financial (BFF) uncovered "significant and repeated" statutory and regulatory violations and that a formal corrective action/consent order will be delivered to BFF's board shortly.
Kansas Bank Commissioner David Herndon told the Joint Committee on Fiduciary Financial Institutions Oversight on Nov. 7, 2025, that his office's examination of Beneficient Fiduciary Financial (BFF) found "significant and repeated" violations of Kansas banking statutes and the TEFI Act and that a formal corrective action is being proposed and will be delivered to BFF's board "today or tomorrow." The report of examination, Herndon said, is confidential under KSA 9-17-12(a), but he disclosed the scope and the regulatory outcome.
Herndon said the OSBC conducted an on-site examination of BFF on July 23, 2025, held an exit meeting with BFF's board, and delivered a final, confidential report to the board on Oct. 22. Because of the volume and severity of cited violations, OSBC intends to institute a continuous examination cycle for BFF and is proposing a consent/ corrective action to address governance, compliance and safety-and-soundness concerns.
Items Herndon listed as causes for concern included lack of corporate oversight and governance by the board, frequent leadership changes, failure or…
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