In accordance with Governor Lamont's emergency declaration, employees and the public are asked to observe social distancing measures to ensure communal safety and to slow the spread of the novel coronavirus (COVID-19). People are asked to work from home and telecommute wherever possible. Adhering to these instructions, the Department of Banking has closed its offices to the public. However, agency staff will continue to provide services to consumers and industry through telework. When contacting the Department, please use electronic communication whenever possible. Agency staff will continue to check voicemails during this time. Consumers are encouraged to use our online form for complaints. If you are unsure where to send an inquiry, you may send it to Department.Banking@ct.gov and it will be routed appropriately. Thank you for your patience during this time.

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.

 

STATE BANK ACTIVITY
 

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

 

Consent Order
 
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.

 

 

      Dated: Tuesday, November 19, 2019

 

      Jorge L. Perez
      Banking Commissioner