The Department of Banking News Bulletin
Bulletin # 2949 - Week Ending August 28, 2020
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
Credit Union ActivityOn August 27, 2020, the Commissioner approved the merger of Connecticut Transit Federal Credit Union (“Connecticut Transit”), a federal credit union, with and into America’s First Network Credit Union (“AFNCU”), a Connecticut credit union, pursuant to Section 36a-468a of the Connecticut General Statutes. In conjunction with the merger, AFNCU’s field of membership will expand to include the select employee group that makes up Connecticut Transit’s field of membership.
Out of State Bank Activity
On August 27, 2020, Centreville Bank, a Rhode Island-chartered savings bank, filed notice pursuant to Connecticut General Statutes Sections 36a-412 and 36a-145 of the closing of its limited branch at the Creamery Brook Village, 36 Vina Lane, in Brooklyn, Connecticut as of November 30, 2020.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Wilmington Capital Securities, LLC (CRD No. 133839)
On August 25, 2020, the Banking Commissioner entered a Consent Order (No. CO-20-202-91-S) with respect to Wilmington Capital Securities, LLC, a Connecticut-registered broker-dealer located at 600 Old Country Road, Suite 200, Garden City, New York 11530. The Consent Order alleged that the firm engaged in dishonest or unethical business practices within the meaning of Section 36b-31-15a(b) of the Regulations under the Connecticut Uniform Securities Act by paying an unregistered sales assistant a percentage of the commissions earned by those broker-dealer agents the sales assistant supported. The Consent Order also alleged that the firm violated Section 36b-31-6f(b) of the Regulations by failing to establish, enforce and maintain a supervisory system reasonably designed to achieve compliance with applicable securities laws and regulations.
The Consent Order directed the firm to cease and desist from regulatory violations and to remit $11,275 to the department. Of that amount, $10,000 constituted an administrative fine and $1,275 represented reimbursement for past due broker-dealer agent registration fees.
CONSUMER CREDIT DIVISION ACTIVITY
Memorandum and No Action Position
On August 26, 2020, the Department issued a memorandum to advise consumer collection agencies of practices considered to be indirect consumer collection activities requiring licensure by the Department. The memorandum can be found on the Department's website. To allow persons sufficient time to make any necessary changes to comply, the department will take a no action position concerning licensure requirements of persons engaged in indirect consumer collection activity until November 1, 2020.
Dated: Tuesday, September 1, 2020
Banking Commissioner