The Department of Banking News Bulletin
Bulletin # 2908 - Week Ending November 15, 2019
This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
Reorganization into a Mutual Holding Company
On November 15, 2019, pursuant to Sections 36a-192, 36a-193 and 36a-198 of the Connecticut General Statutes, the Commissioner issued notice of his intent not to disapprove the formation by The Guilford Savings Bank (the “Mutual Bank”) of a mutual holding company to be known as GSB Mutual Holding Company (the “MHC”), approved an application to form a reorganized savings institution to be known as The Guilford Savings Bank (the “Stock Bank”), approved the MHC’s application to establish a subsidiary holding company to be known as GSB Bancorp, Inc., and approved the merger of the Mutual Bank with and into the Stock Bank.
CONSUMER CREDIT DIVISION ACTIVITY
On November 7, 2019, the Commissioner entered into a Consent Order with Poloniex, LLC (NMLS # 1486722) (“Poloniex”), Boston, Massachusetts. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that, from at least January 1, 2017 to January 1, 2019, Poloniex engaged in the business of money transmission in this state without a license, in violation of Section 36a-597(a) of the Connecticut General Statutes. As part of the Consent Order, Poloniex paid $10,000 as a civil penalty and $2,500 as back licensing fees.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
ETFConcepts, LLC (CRD No. 159411)
On November 14, 2019, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-19-8536-S) with ETFConcepts, LLC, a Connecticut registered investment adviser located at 290 East Litchfield Road, Litchfield, Connecticut 06759. The Stipulation and Agreement alleged that, from approximately August 1, 2017 through May 9, 2019, the firm engaged an unregistered investment adviser agent in violation of Section 36b-6(c)(3) of the Connecticut Uniform Securities Act. The investment adviser agent in question has since applied for registration under the Act.
In resolution of the matter, the firm agreed to refrain from regulatory violations and to pay $1,350 to the department. Of that amount, $1,000 constituted an administrative fine and $350 represented reimbursement for past due investment adviser agent registration fees.