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.

* * * * * * * * * * * * * * * * * * 


IN THE MATTER OF:

COLUMBIA FUNDS SERIES TRUST

COLUMBIA FUNDS SERIES TRUST I



* * * * * * * * * * * * * * * * * * 


*
*
*
*
*
*
*
*
*
*
*

   STIPULATION AND
   AGREEMENT

No. ST-17-8276-S

   

WHEREAS, the Banking Commissioner (the “Commissioner”) is responsible for administering Chapter 672a of the Connecticut General Statutes, the Connecticut Uniform Securities Act (the “Act”) and Sections 36b-31-2 et seq. of the Regulations of Connecticut State Agencies (the “Regulations”) promulgated under the Act;

WHEREAS, Columbia Funds Series Trust (“Columbia Trust”) of 225 Franklin Street, Boston, Massachusetts 02110 is an open-end management investment company formed under Delaware law on October 22, 1999.  Columbia Trust offers various portfolios of securities to the public;

WHEREAS, Columbia Funds Series Trust I (“Columbia Trust I”), also of 225 Franklin Street, Boston, Massachusetts 02110, is an open-end management investment company formed under Massachusetts law on October 6, 1987.  Columbia Trust I also offers various portfolios of securities to the public;

WHEREAS, the securities issued by Columbia Trust and Columbia Trust I would be deemed “covered securities” within the meaning of Section 18(b)(2) of the federal Securities Act of 1933;

WHEREAS, Section 36b-21(c) of the Act provides, in part, that:  “(1)  Any person who offers or sells a security that is a covered security under Section 18(b)(2) of the Securities Act of 1933 shall file with the commissioner . . . a notice for each series or portfolio prior to the initial offer of such security in this state, provided such notice requirement does not apply to any offer or sale described in subdivision (9) or (12) of subsection (b) of this section.  The notice shall contain such information as the commissioner may require and shall be accompanied by a consent to service of process as required by subsection (g) of section 36b-33 and, except as provided in subdivision (4) of this subsection, a nonrefundable fee of five hundred dollars . . . (3) any notice filed pursuant to this subsection relating to a redeemable security issued by an open end management company, as defined in the Investment Company Act of 1940, shall be valid until December thirty first of the calendar year in which it was first filed, without limitation as to the number of shares or aggregate amount.  Such notice may be renewed annually thereafter upon submission of such information as the commissioner may require together with a nonrefundable fee of five hundred dollars”;

WHEREAS, both Columbia Trust and Columbia Trust I relied on a third party service provider, BNY Mellon Investment Servicing (US) Inc./ClearSky Services, to make the filings required by Section 36b-21(c) of the Act;

WHEREAS, on December 15, 2015, Columbia Trust and Columbia Trust I self-reported, through the third party service provider, that Connecticut sales of the following portfolios had been made on the dates indicated even though no prior related filings had been made under Section 36b-21(c) of the Act:

a)     October 25, 2013:  Columbia Funds Series Trust (Columbia AMT-Free North Carolina Intermediate Muni Bond Fund);
 
b)  October 25, 2013:  Columbia Funds Series Trust (Columbia AMT-Free South Carolina Intermediate Muni Bond Fund);
   
c)  November 26, 2013:  Columbia Funds Series Trust (Columbia AMT-Free California Intermediate Muni Bond Fund);
   
d)  December 31, 2013:  Columbia Funds Series Trust I (Columbia AMT-Free Oregon Intermediate Muni Bond Fund);
   
e)  January 21, 2014:  Columbia Funds Series Trust (Columbia AMT-Free Virginia Intermediate Muni Bond Fund);
   
f)  June 12, 2014:  Columbia Funds Series Trust (Columbia AMT-Free Maryland Intermediate Muni Bond Fund)
  
g) July 24, 2015:  Columbia Funds Series Trust I (Columbia California Tax-Exempt Fund)

WHEREAS, the Department only received initial filings and initial filing fees for the affected portfolios on or about December 15, 2015;

WHEREAS, Columbia Trust and Columbia Trust I desire to settle the matters involving the filing delinquencies described herein and voluntarily enter into this Stipulation and Agreement;

WHEREAS, Section 4-177(c) of Chapter 54 of the Connecticut General Statutes permits the resolution of a contested case by stipulation or agreed settlement;

WHEREAS, the Commissioner, Columbia Trust and Columbia Trust I acknowledge that this Stipulation and Agreement is in lieu of any court action or administrative proceeding against either trust, its trustees, officers, employees, agents or representatives adjudicating any issue of fact or law on the specific matters described herein;

WHEREAS, Columbia Trust and Columbia Trust I, through their respective execution of this Stipulation and Agreement, voluntarily waive any rights each may have to seek judicial review or otherwise challenge or contest the terms and conditions of this Stipulation and Agreement;

NOW THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:

1.
No later than the date this Stipulation and Agreement is executed by the Commissioner, Columbia Funds Series Trust and Columbia Funds Series Trust I shall jointly and severally remit to the department via check payable to “Treasurer, State of Connecticut” the sum of eight thousand five hundred dollars ($8,500), five thousand dollars ($5,000) of which shall constitute reimbursement for past due notice filing fees and three thousand five hundred dollars ($3,500) of which shall constitute an administrative fine;
2.
Columbia Funds Series Trust and Columbia Funds Series Trust I shall refrain from offering or selling securities in or from Connecticut absent compliance with Section 36b-16 of the Act, including timely compliance with the filing requirements in Section 36b-21(c) of the Act;
  
3. Execution of this Stipulation and Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Columbia Funds Series Trust or Columbia Funds Series Trust I based upon a violation of this Stipulation and Agreement or the basis for its entry if the Commissioner determines that compliance is not being observed with the terms hereof;
   
4. Nothing in this Stipulation and Agreement shall be construed as limiting the Commissioner's ability to take enforcement action against Columbia Funds Series Trust and/or Columbia Funds Series Trust I based upon evidence of which the Commissioner was unaware on the date hereof relating to a violation of the Act or any regulation or order under the Act; and
5. This Stipulation and Agreement shall become binding when executed by Columbia Funds Series Trust, Columbia Funds Series Trust I and the Commissioner.

IN WITNESS WHEREOF, the undersigned have executed this Stipulation and Agreement on the dates indicated.


Dated at Hartford, Connecticut       ____/s/_____________
this 24th day of October 2017. Jorge L. Perez
Banking Commissioner 


I, Lyn Kephart-Strong, state on behalf of Columbia Funds Series Trust, that I have read the foregoing Stipulation and Agreement; that I know and fully understand its contents; that I am authorized to execute this Stipulation and Agreement on behalf of Columbia Funds Series Trust and that Columbia Funds Series Trust agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

Columbia Funds Series Trust
 
 
By    _______/s/______________
Lyn Kephart-Strong
Title:  Vice President


On this 16 day of Oct. 2017, personally appeared Lyn Kephart-Strong, signer of the foregoing Stipulation and Agreement, who, being duly sworn, did acknowledge to me that [she] was authorized to execute the same on behalf of Columbia Funds Series Trust and acknowledged the same to be [her] free act and deed, before me.


_____/s/_________________________
Notary Public
My Commission Expires:  Jan. 31, 2021


I, Lyn Kephart-Strong, state on behalf of Columbia Funds Series Trust I, that I have read the foregoing Stipulation and Agreement; that I know and fully understand its contents; that I am authorized to execute this Stipulation and Agreement on behalf of Columbia Funds Series Trust I and that Columbia Funds Series Trust I agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

Columbia Funds Series Trust I
 
 
By    ______/s/________________
Lyn Kephart-Strong
Title:  Vice President


On this 16 day of Oct. 2017, personally appeared Lyn Kephart-Strong, signer of the foregoing Stipulation and Agreement, who, being duly sworn, did acknowledge to me that [she] was authorized to execute the same on behalf of Columbia Funds Series Trust I and acknowledged the same to be [her] free act and deed, before me.


_____/s/_________________________
Notary Public
My Commission Expires:  Jan. 31, 2021




Administrative Orders and Settlements