Administrative Report to the Governor
2024-2025

Department At A Glance:
Commissioner Jorge L. Perez

Established - 1837

Statutory Authority - Titles 36a, 36b and subsections (b), (d), (h) and (i) of Section 47a-21
Connecticut General Statutes, and Related Laws

Central Office - 
260 Constitution Plaza
Hartford, CT 06103-1800

Average number of full-time employees - 128 budgeted, 122 filled

Recurring operating expenses, 2024-2025 - $24,533,188 (actual)

Organization Structure:

• Executive/Administration
• Financial Institutions Division
• Consumer Credit Division
• Securities and Business Investments Division
• Government Relations and Consumer Affairs
• Business Office
• DAS/Information Technology Services
• DAS/Smart Unit (Human Resources services)
• DAS Equal Employment Opportunity Unit

Agency Mission

The Department of Banking (DOB) is the primary state regulator for state-chartered banks and credit unions, securities, and consumer credit.  Its mission is to protect users of financial services from unlawful or improper practices by ensuring regulated entities and individuals adhere to state banking, consumer credit and securities laws.  We accomplish this through regular, thorough, and cost-effective examinations of the entities we supervise.  The Department also engages the public and other stakeholders (including elected officials) through a variety of media platforms, educational outreach initiatives, and press communications.

Statutory Responsibility

The Department of Banking is responsible for the regulation and examination of financial institutions and various related entities who are, or are required to be, chartered, licensed or registered by the state. The Banking Commissioner is charged with administering the banking and credit union laws of the state as well as the laws regarding securities and business opportunities. The Banking Commissioner also administers the Truth-in-Lending Act and other consumer credit laws (mortgage, student loan servicers, consumer collection, money transmission, etc.) and a major portion of the law concerning rental security deposits.

The Department's customers include the general public, representatives of the public, regulated entities, researchers, and consultants. Connecticut residents benefit broadly from agency activities, which protect their funds in depository institutions, offer important investor and consumer protections, assist in dispute resolution, and provide helpful educational resources and information.

The Department engages with all levels of government, including the Governor’s Office, members of the General Assembly, other elected and appointed officials, federal, state and municipal government offices, the Department of Justice as well as with various other law enforcement agencies.  This is achieved largely through case referrals, proposed legislation, media events and educational outreach initiatives.

The Department is comprised of the executive office, three operational divisions, and two support units and other partners through DAS. Specific regulatory functions are assigned to each operational division within the Department.  In addition, the Department receives support from the Department of Administrative Services (DAS) through its SmART Unit for Human Resource services; Equal Employment Opportunity/Affirmative Action Unit; and Bureau of Information Technology Solutions (BITS).

The Executive/Administrative Office provides overall supervision as well as strategic guidance for the agency. Comprised of the Commissioner and the Chief of Staff/General Counsel, the office also houses the Student Loan Ombudsperson and the agency’s Hearing Officer/Freedom of Information Coordinator. With input from the other divisions, the Executive Office sets the vision and goals for the agency as well as public policy. 

In 2024, the Office of the Student Loan Ombudsperson was established, under the supervision of the Banking Commissioner, to serve as the state’s chief authority and specialist on all issues related to student loans.  The office is administratively held within the Department of Banking and is led by a Student Loan Ombudsperson who is appointed by the Banking Commissioner.  The Student Loan Ombudsperson has an independent statutory authority to analyze and monitor laws and policies that impact student loan borrowers at the federal, state, and local level, and to make recommendations. The Student Loan Ombudsperson works directly with loan borrowers to address complaints and help them navigate issues and identify resources.

In the 2024-2025 fiscal year, the Commissioner appointed a Senior Assistant Division Director assigned to the Financial Institutions Division, responsible for the supervision and regulation of innovation banks as well as legal matters for the Division.  The Commissioner also appointed a Program Manager of Innovation and Strategy. While assigned to the Securities and Business Investments Division, the Program Manager offers guidance to other Divisions in their efforts to regulate emerging financial technologies through the implementation of training and program development.

The Financial Institutions Division is responsible for the supervision of insured state-chartered bank and trust companies, savings banks, savings and loan associations and credit unions, in addition to innovation banks and trust banks. The Division also licenses foreign banking organizations that establish and maintain representative offices, agency offices and branch offices in Connecticut, and supervises bank holding companies.  It has responsibility for analyzing applications for new bank or credit union charters, acquisitions, mergers, conversions, branches, changes in corporate structure, and credit union field of membership expansions.  In addition, the Division licenses business and industrial development corporations (BIDCOs), international trade and investment corporations and certain non-banking corporations that exercise fiduciary powers.

The Consumer Credit Division is responsible for examination, enforcement, and licensing of mortgage lenders, brokers, servicers, lead generators of residential mortgage loans and loan originators; small loan companies; sales finance companies; debt adjusters; debt negotiators; consumer collection agencies, including debt buyers; money transmitters; check cashing services; and student loan servicers.  The Division also registers federal student loan servicers; private education lenders and loan creditors; and commercial financing brokers and providers.  In addition, Consumer Credit also administers Truth-in-Lending laws and retail installment sales financing laws.

The Securities and Business Investments Division is responsible for registering securities and business opportunity offerings sold in or from Connecticut, registering (licensing) broker-dealers, agents, investment advisers and investment adviser agents who transact business in Connecticut and registering branch offices of broker-dealer and investment advisory firms. The Division also conducts examinations of broker-dealers, investment advisers and branch office registrants, and enforces the Connecticut Uniform Securities Act and the Connecticut Business Opportunity Investment Act.

Government Relations and Consumer Affairs Division assists consumers with issues involving financial services and products regulated by the Department and oversees the administration and enforcement of the rental security deposit laws.  The unit also directs the agency's legislative program, manages communications and media relations for the Department, coordinates financial and investor-education outreach efforts and provides assistance to homeowners in foreclosure or in danger of foreclosure through the Foreclosure Assistance Hotline.

The Business Office at the Department of Banking is a support unit for the agency. The Business Office is responsible for the accounting, budgeting, fiscal, purchasing and financial reporting functions for the Department. 

The DAS Small Agency Resource Team (DAS/SmART Unit) provides Human Resource support for the agency. This unit consolidates human resources and payroll personnel from multiple agencies into one unit and provides services to several departments throughout state government.

The DAS Equal Employment Opportunity (EEO) Unit helps ensure that the agency complies with federal, state and local affirmative action and equal opportunity laws including serving as the Americans with Disabilities Act coordinator.  The EEO Unit also ensures compliance with the agency’s non-discrimination and anti-harassment policies and compiles the agency’s affirmative action plan which is made available through the Department’s intranet. The Department did not knowingly do business with any bidder, contractor, sub-contractor, supplier of materials, or licensee who discriminates against members of any class protected under Conn. Gen. Statutes Sec. 4a-60 or 4a-68. As a Department of the State of Connecticut, the agency adheres to the State’s requirement of being an equal opportunity employer.

Information technology support is provided to the Department of Banking through the DAS Bureau of Information Technology Solutions.

Public Service

The Department of Banking is strongly committed to maintaining a standard of excellence in meeting its regulatory responsibilities while balancing strong consumer protections in a business-friendly environment.

To provide the public with convenient 24-hour, 7-day access to information on agency programs, licensing activity, and educational resources, the Department maintains its website, www.ct.gov/dob where consumers may send inquiries, file a complaint or conduct research using available data, at any time.  During the 2024-2025 fiscal year, approximately 319,000 visitors viewed over 1.1 million pages on the agency website. The rental security deposit page continues to be the most visited landing page throughout the entire site. 

The Department updates and maintains information regarding licensees and registrants, as well as financial and industry information related to the financial institutions operating in Connecticut.  Relevant financial information is updated quarterly for banks and credit unions, in addition to providing the public with easy access to such public filings as the quarterly Call Report.  

The Department of Banking posts on its website administrative actions taken by the agency against various entities, subject to the jurisdiction of the Department, for a period of ten years. Visitors may also find indices to advisory opinions issued by the Commissioner concerning banks, credit unions, consumer credit, rental security deposits and securities and business opportunity matters.

Each Division within the Department routinely collaborates with other law enforcement agencies such as the Federal Bureau of Investigation (FBI), the Connecticut State Police and the U.S. Attorney’s office.

A weekly News Bulletin provides information on applications before the agency, recent administrative orders and legal actions, and intended changes in regulations.  The Securities Division produces a quarterly Securities Bulletin advising the industry of new regulatory developments.  Both publications are emailed to thousands of people through Constant Contact, making it easier to view on mobile devices, and are posted to the agency website.

The Department prominently features on its website consumer alerts for the general public and industry. These alerts may come from other state or federal agencies or as a result of work done by the Department. These are designed to raise awareness of current trends and new frauds and scams that are relevant to Connecticut consumers and industry professionals. 

The Department utilizes social media as one of its tools in communicating with its stakeholders including consumers, investors, and industry professionals. Through its Facebook page (facebook.com/ctdob) the Department shares news and updates, as well as financial education information, to the general public and industry alike. 

Office of the Student Loan Ombudsperson (SLO)

The Student Loan Ombudsperson has independent oversight over student loan matters and advocacy for the rights of borrowers.  In this role, the Ombudsperson works with Government Relations and Consumer Affairs to review and attempt to resolve student loan borrower complaints, analyzes student loan borrower complaint data, assists borrowers in understanding their rights and responsibilities, and otherwise seeks to fulfill the duties set forth in General Statutes Section 36a-25.

The Student Loan Ombudsperson developed a comprehensive strategy to engage with state and federal partners as well as building a network with other state Ombudspersons. This strategy included outreach to legislative Banking Committee leadership, the Office of Higher Education, Office of the Attorney General, Department of Administrative Services, Department of Consumer Protection, and representatives from the Student Loan Fund, a non-profit advocacy group located in New Haven.

The Department of Banking expanded its website during the fiscal year 2024-2025 to offer pages dedicated to the Office of the Student Loan Ombudsperson.  Those pages provide up-to-date information on student and parent loans, including resources and how to file a complaint if the borrower experiences issues with their servicer.  In 2024, the Office of the Student Loan Ombudsperson updated the Student Loan Repayment Guide which offers key information for Connecticut loan borrowers.  The guide is a starting point for borrowers to understand their rights, responsibilities, repayment and forgiveness options, and will be updated annually.  It is currently available in six other languages (Chinese, Haitian-Creole, Italian, Polish, Portuguese, and Spanish).

Financial Institution Division (FID)

As of June 30, 2025, the Financial Institutions Division had regulatory oversight over twenty-three state-chartered domestic banks, two trust banks, two innovation banks, twenty-six credit unions, one international trade and investment corporation, two business and industrial development corporations (BIDCOs), three licensees that administer trust and/or special need services, as well as one branch office and two representative offices of foreign banking organizations operating in the State.

During this fiscal year, the Department issued temporary certificates to organize two innovation banks - Moneycorp Bank US and Fnality Bank US.  The temporary certificate issued to TNB USA Inc. expired on February 22, 2025.  In addition to the traditional safety and soundness examinations conducted by FID, its regulatory obligations include multiple specialty examinations such as information technology, cybersecurity, Community Reinvestment Act, Truth-In-Lending Act, and Bank Secrecy Act.

During this reporting period FID licensed two new BIDCOs, one based in Hartford and the other in New Haven. With the assistance of state grant money administered through the Department of Economic and Community Development (DECD), these licensees will offer more lending opportunities in these traditionally underserved communities. 

During this fiscal year, the Banking Commissioner participated in a number of industry-related meetings with Chief Executive Officers (CEOs) of banks and credit unions. The Commissioner and other agency staff participated in a number of industry events sponsored by the Federal Deposit Insurance Corporation (FDIC), Connecticut Bankers Association (CBA), Connecticut Community Bankers Association, the Credit Union League of Connecticut, Bank Compliance Association of Connecticut (BCAC), the Conference of State Bank Supervisors (CSBS) and the National Association of State Credit Union Supervisors (NASCUS).

The Department of Banking successfully maintained its accreditation of the banking and credit union areas.  The national accreditation programs are administered by CSBS and NASCUS respectively with both accreditations renewed in the fourth quarter of 2024.

Consumer Credit Division (CC)

The Consumer Credit Division issues eighteen different license or registration types across several sectors of the non-depository financial services market.  During fiscal year 2024-2025 the Division began issuing commercial financing broker or provider registrations.  As of June 30, 2025, overall, the Division licensed 3,639 companies and branch offices (including 723 mortgage companies) and 9,270 individuals. The Division approved seven bona fide nonprofit organizations.

For fiscal year 2024-2025, the Division conducted sixty-one examinations of licensees.

The Division continued its enforcement efforts, including conducting investigations of companies engaged in unlicensed activity.  The Division issued fifty-two actions, resulting in penalties of approximately $4.3 million.  In addition, Division efforts brought restitution to the public in excess of $2.2 million.  The Consumer Credit Division routinely cooperates with other law enforcement agencies, such as the U.S. Attorney’s office and the Federal Bureau of Investigation.

The Consumer Credit Division is part of the CSBS initiative to modernize the software of the Nationwide Multistate Licensing System & Registry (NMLS). NMLS 2.0 is designed to greatly increase efficiencies for both industry and regulators when licensing mortgage and non-mortgage individuals and entities. The State Examination System (SES) is an end-to-end examination management system that supports supervision, complaint, investigation, and enforcement activities for all non-depository financial entities, including but not limited to mortgage companies, money services businesses, consumer credit companies and debt collectors.

The Consumer Credit Division represents the Department as a member of the American Association of Residential Mortgage Regulators (AARMR), which provides opportunities for the Division to engage and work with other states to identify industry trends and best practices. The agency’s mortgage regulatory program under the direction of the Consumer Credit Division celebrated their re-accreditation awarded by the Conference of State Bank Supervisors (CSBS) Performance Standards Committee. The Division satisfied the extensive criteria established by CSBS and AARMR. The Performance Standards Committee voted for this re-accreditation, commending the Division for its robust licensing application review procedures along with recommendations for areas of improvement.

Securities and Business Investments Division (SBID)

The Securities Division conducted remote and on-site books and records examinations of registered broker-dealers, registered investment advisers, and their offices (both main offices and branch offices).  One of the Securities Division’s goals was to examine in-state investment advisers falling within the agency’s jurisdiction once every three years.  More filers were able to make filings and remittances electronically and therefore speed up processing time.  Microsoft Teams continued to be an effective tool in maintaining Division communications.  The agency also implemented a system for conducting hearings remotely.

The SBID’s securities industry registrant and notice filing base remained relatively stable throughout the fiscal year.  As of fiscal year-end, 1,940 broker-dealer firms and 419 investment advisory firms were registered in Connecticut, representing a slight decrease (1.4 percent) in brokerage firms and a slight decrease (1.8 percent) in investment advisory firms from June 30, 2024.  The number of Securities and Exchange Commission (SEC)-registered investment advisers making a notice filing with the agency increased 5 percent, from 2,550 to 2,680.  As of June 30, 2025, 213,160 broker-dealer agents employed by brokerage firms and 14,939 investment adviser agents associated with investment advisers were registered with the Securities Division, a fiscal year-end population increase of 2.5 percent for broker-dealer agents and a population decrease of 3.68 percent for investment adviser agents when compared to the preceding fiscal year-end.  The number of in-state registered broker-dealer branch offices increased slightly from 2,331 in 2024 to 2,368 as of June 30, 2025.

The Division also investigates violations of the state’s securities and business opportunity laws, pursuing administrative, civil and criminal remedies where appropriate.  Many times, this involves interacting with other state securities regulators, the SEC, the U.S. Attorney’s Office, the Connecticut Attorney General’s Office, and other enforcement bodies to ensure that violators are brought to justice.

The Securities Division investigated several noteworthy matters during the fiscal year.  The first occurred on December 20, 2024, when the Banking Commissioner entered a Consent Order (No. CO-23-11056-S) with respect to Edward D. Jones & Co., L.P. The multistate action focused on the firm charging front-load commissions for investments in Class A mutual fund shares in situations where the customer sold or moved the mutual fund shares sooner than originally anticipated.  The firm was fined $320,754.72 and remitted an additional $15,000 constituting Connecticut’s allocated share of the investigative costs involved in the multistate settlement.

The second action involved a Consent Order (No 25-202513-S), dated March 25, 2025, with The Vanguard Group, Inc., an SEC-registered investment adviser, and its wholly owned subsidiary, Vanguard Marketing Corporation.  The Consent Order was an outgrowth of a multistate investigation into the activities of the firm and a parallel investigation by the SEC.  The Vanguard Consent Order was significant since it highlighted the cooperation between state and federal securities regulators in addressing regulatory problems.  The Consent Order acknowledged that Respondents had agreed to pay $135 million in remediation to the Securities and Exchange Commission Fair Fund, administered by the SEC, to benefit harmed investors.  Counting offsets, the total amount of remediation was $92.91 million, which Vanguard paid into the Fair Fund on or about January 24, 2025.  In addition, on or about January 24, 2025, Respondents paid an administrative penalty of $13,500,000 into the SEC Fair Fund.

On a related note, the North American Securities Administrators Association Enforcement Section honored Division Staff Attorney Elena Zweifler and Principal Examiner Klem Klementon for their work on the Vanguard matter.  Connecticut was one of the lead states which conducted a three-year comprehensive investigation culminating in the substantial settlement.

The third action involved a multistate Consent Order (No. CO-24-2024-1-S-S), dated February 13, 2025, with Plutus Financial Holdings Inc., Plutus Financial Inc., Plutus Lending LLC, Abra Boost LLC and William Barhydt.  The four entities were affiliated and under the common control of William Barhydt.  The multistate investigation focused on Respondents’ offer and sale of interest-bearing depository account products, referred to as “Abra Earn” and “Abra Boost.”  Members of the public purchased the investments through a smartphone application. The Consent Order required that the Respondents return all outstanding assets in Connecticut customer accounts having a value of $10 or more no later than the date the Consent Order was entered by the Commissioner.  Approximately 93 Connecticut investors, whose accounts totaled approximately $98,609, were eligible for a monetary return.  Approximately $92,838 has been paid out to those Connecticut investors whom Respondents were successful in contacting.  The Plutus Consent Order directed the Respondents to cease and desist from regulatory violations and fined the Respondents $100,000.  Payment of the fine, however, would be suspended as long as Respondents returned customer assets in accordance with the Consent Order.

All told, intervention by the SBID during the fiscal year resulted in restitution and rescission offers to the investing public totaling $477,438 (independent of the SEC Fair Fund figure described above).  The Division also imposed $781,704 in fines for violations of the state’s securities and business opportunity laws.

The Securities Division continued its enforcement efforts in responding to securities complaints from the Connecticut investing public.  Investigations focused on schemes involving digital asset and cryptocurrency products; the misappropriation or conversion of investor funds; fraudulent sales of securities to Connecticut residents at unrealistic rates of return; dishonest or unethical practices by investment advisers; sales of securities by unlicensed firms and individuals; elder fraud; and brokerage firm supervisory lapses.  The Division worked closely with securities regulators in other states as well as federal law enforcement authorities in pursuing many of these investigations.

During fiscal year 2024-2025, the SBID continued its ongoing evaluation of regulatory policies and rules to ensure that they remained responsive to an ever-changing economic environment and the needs of the investing public.

The Securities Division was also actively involved in the agency’s educational outreach program (described more fully below) providing presentations regarding investor fraud, abusive sales practices and cryptocurrency.  

Government Relations and Consumer Affairs (GRCA)

The Government Relations and Consumer Affairs unit manages the external affairs for the Department of Banking through its consumer affairs team, its legislative efforts, and its communications and educational outreach programs.

Consumer Affairs

As part of the Department’s efforts to protect Connecticut consumers, the consumer affairs unit assists with consumer complaints and dispute resolution in their transactions with entities regulated by the Department. Consumers are encouraged to contact the Department of Banking whenever they need assistance in dealing with financial entities. Agency employees promptly assist consumers with issues involving the financial services industry in Connecticut, those residents who might be facing foreclosure, and tenants involved with issues regarding their rental security deposits.

During the fiscal year 2024-2025, GRCA’s consumer affairs unit – excluding the Foreclosure Hotline and rental security deposit complaints – responded to 2,593 telephone inquiries and 897 written complaints from the public.  As a result of their efforts, GRCA obtained approximately $102,863 in adjustments and reimbursements on behalf of consumers during the period. Consumer Affairs also refers consumers to federal and state regulatory agencies for complaints outside the jurisdiction of the department, including the Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) and other state agencies as appropriate. 

The Foreclosure Assistance Hotline, established in 2007, has continued to be a valuable resource for Connecticut residents.  Callers to the toll-free number receive pertinent advice and guidance regarding their mortgage problems.  During the 2024-2025 fiscal year, the Hotline assisted 537 individual consumers.

The agency received 686 telephone calls for rental security deposit issues in the fiscal year.  The consumer affairs unit resolved 239 landlord/tenant disputes and recovered approximately $25,377 for Connecticut residents who had complained to the Department that landlords had unjustly withheld their refundable rental security deposits.

GRCA staff uses the eLicense system to process, track and manage written complaints to the Department. This system has completely digitized the unit’s workflow and has allowed the possibility of remote work.

On May 31, 2024, the Department launched Robin, an artificially intelligent chatbot with pre-determined responses to assist in supporting website visitors. It automatically answers common questions and provides links for additional information.  The Department of Administrative Services worked to develop the chatbot as a product designed to enhance the digital experience for citizens by providing assistance and guidance throughout their interactions with the government.  During the 2024-2025 fiscal year, visitors to the agency website started 1,010 chats with Robin, generating 1,964 dialog hits.  The most frequently searched topics were “Debt or Credit Information,” “Checks,” and “Banking.”

Legislative Update

During the 2025 legislative session the Department submitted several proposals for consideration by the legislature.  Working closely with the legislature, all agency proposals passed both chambers and were signed into law by Governor Lamont.  

The Financial Institutions Division (FID) proposed a clarifying change to the Treasurer’s Community Bank and Credit Union Initiative as well as modernizing statutes around the innovation bank charter.  This was passed into law as Public Act 25-103, An Act Concerning the Community Bank and Community Credit Union Investment Program Established by the State Treasurer.  The Division also proposed allowing certain credit unions who were certified community development financial institutions to allow for non-member deposits.  This proposal became Public Act 25-37, An Act Concerning Various Revisions to the Credit Union Statutes Relating to Nonmember Payments, Member Business Loans, Charitable Contributions, Extensions of Credit, Capital and Net Worth.

FID also submitted changes that updates and modernizes statues concerning the innovation bank charter, which was passed by the legislature as Public Act 25-104, An Act Concerning the Organization, Administration and Receivership of Certain Financial Institutions.  Specifically, Public Act 25-104:

• increases the application fee to organize a Connecticut bank from $15,000 to $20,000;
• increases the amount of deposit assets that trust banks and innovation banks must keep from $1 million to $1.5 million; 
• exempts innovation banks from some CRA ratings, because innovation banks do not accept retail deposits;
• decreases the period allotted for submitting written objections to a proposed name change of a Connecticut bank from 30 to 15 days of a capital stock; and
• requires receivers, when liquidating an innovation bank, to consider the innovation bank’s credit conditions instead of the credit conditions in the locality of the innovation bank.

Consumer Credit Division submitted a series of proposals including requiring disclosures around Shared Appreciation Agreements; requiring bonds to be canceled electronically updating statutes to reflect electronic bond procedures for consumer credit licensees; clarifying servicing provisions for sales finance companies, small loan companies, mortgage servicers and student loan servicers; clarifying “balance due under the contract” and establishing limitations on actual and reasonable expenses in repossessions; providing enforcement authority and registration timelines for consumer credit registrants; requiring APR (annual percentage rate) disclosures by commercial financing providers; and clarifying obligations concerning private student education cosigner releases.  These proposals became Public Act 25-115, An Act Consumer Credit and Commercial Financing.

The Securities and Business Investments Division spearheaded Public Act 25-85, An Act Concerning the Connecticut Uniform Securities Act. The legislation, which became effective upon passage, created a state broker-dealer registration exemption for merger and acquisitions broker-dealers who facilitated a change in control of private companies.  In addition, the legislation created a notice filing requirement for securities offerings made pursuant to Regulation A Tier 2 promulgated under the federal Securities Act of 1933.  Specifically, twenty-one calendar days before the initial sales of securities in Connecticut, affected issuers would file a Regulation A - Tier 2 notice filing form, a Consent to Service of Process and a $250 filing fee.  Initial filings would be effective for twelve months following which they could be renewed. The legislation also expanded the Commissioner's enforcement powers to enable the Commissioner to censure or bar a registrant, or any partner, officer, director or control person of a registrant based on grounds enumerated in Section 36b-15(a) of the Connecticut Uniform Securities Act and subject to the registrant’s right to request a hearing.

The Department also offered testimony and engaged the legislature, industry and consumer advocates concerning earned wage advances, which was passed into law as Public Act 25-155, An Act Concerning Earned But Unpaid Wage or Salary Income Advances. The Banking Committee introduced legislation which was negotiated with interested stakeholders that exempted certain practices from our small loan law, giving industry more flexibility to offer these products to Connecticut consumers.

Educational Outreach

The primary focus of the Department’s educational outreach program is to help Connecticut's consumers and investors make informed financial decisions and to protect their money from fraud and scams.  Through GRCA, the agency publishes consumer alerts and information on known frauds and scams.  Agency staff provide vital information to consumers through speaking engagements, presentations, seminars, and expos, and are often called upon to share their expertise in helping consumers and investors of all ages learn about and avoid financial fraud.

During the 2024-2025 fiscal year, agency staff participated in over 75 outreach programs, consisting primarily of in-person presentations and programs.  The agency’s educational outreach coordinators continued to offer both virtual and in-person engagements to a variety of audiences, including older adults, high school and college students, and industry professionals, on topics ranging from financial fraud and exploitation to credit and debt management and cybersecurity.

The key to the success of the outreach program at the Department is building relationships and developing partnerships.  Through our outreach program, we utilize partnerships with state, federal and community organizations to empower residents with the knowledge to protect their finances.  Department staff are often called upon to share their expertise in helping consumers and investors learn about and avoid financial fraud, and these collaborations were evident throughout this fiscal year.

Libraries have consistently provided the Department of Banking with opportunities to share our expertise and resources with the general public.  The outreach coordinators provided both in-person and virtual programs for libraries in towns including Bethel, Durham, Greenwich, Rockville, and Warehouse Point during the fiscal year on issues such as protecting your personal information online, avoiding banking scams, identity theft, and how to avoid travel scams.

The Department’s Financial Fraud Bingo program continues to be one of the most requested outreach programs offered for seniors.  During the 2024-2025 fiscal year, the agency’s outreach coordinators presented 18 Financial Fraud Bingo programs for residents in housing communities and senior centers across the state, including Bristol, Jewett City, Monroe, North Haven, Norwalk, Stamford, and Woodbridge.  Two programs in New Britain were translated into Spanish.  This program has shown to be a fun, interactive way to educate seniors about banking scams and fraud prevention, and targeted outreach to resident service coordinators at senior communities has greatly increased opportunities. 

The agency’s educational outreach coordinator developed a creative collaboration with Town Clerks to provide financial education to couples seeking marriage licenses.  She represents the Department of Banking at their bi-annual conferences by hosting an agency table to distribute copies of Marriage & Money: Starting Your Financial Life Together.  During the 2024-2025 fiscal year, she distributed nearly 9,000 copies of the financial guide to Town Clerks at their Fall and Spring conferences, who in turn provide the booklet to couples obtaining their marriage license.

During the 2024-2025 fiscal year, the agency’s outreach coordinators had opportunities to collaborate with higher education to conduct outreach programs for college students.  She conducted multiple workshops and presentations in both the fall of 2024 and spring of 2025 at CT State Community College Manchester on avoiding online scams; the University of Bridgeport, as part of their first-year seminar; and the University of New Haven, for their financial wellness program.  The University of St. Joseph in West Hartford included the Department at their Wellness Fair for students.  Commissioner Perez continued his partnership with Central Connecticut State University by addressing a Bank Management class in March 2025.

The Department looks for ways to encourage high school students to focus on their finances and money management.  In the fall of 2024, the outreach coordinators partnered with an educator from UConn Extension to provide a workshop for a special education class at East Windsor High School.  In March 2025, she was a guest speaker for Chelsea Groton Bank’s annual Money Madness Conference at CT State Community College Three Rivers in Norwich, where she provided five break-out sessions on protecting yourself and your finances online to groups of area high school students. In April 2025, the Student Loan Ombudsperson met with students and parents and staffed a resource table in April 2025 at New Britain High School for their Family Finance Night.

Partnerships with credit unions provided the Department with outreach opportunities during 2024-2025.  In November 2024, Department staff shared resources and spoke with attendees at a fraud event hosted by American Eagle Financial Credit Union in East Hartford.  In April 2025, agency staff from the Department and the Office of the Student Loan Ombudsperson participated at Financial Reality Fairs in Stamford and Bridgeport, hosted by Members Credit Union and Mutual Security Credit Union, respectively.  The events bring hundreds of high school students together to participate in an interactive simulation designed to help them experience real-life financial decision-making. 

Conferences and expos provide agency staff an opportunity to meet directly with the public and share resources and promotional materials with Connecticut consumers and investors.  In July 2024, the outreach coordinator represented the Department at a senior fair hosted by Senior Resources Area Agency on Aging at Dodd Stadium in Norwich.  In September, she met with seniors and distributed materials at a Senior Health and Wellness Fair in Shelton.  In October, both outreach coordinators represented the Department at the UCONN Work/Life Expo, held at the Student Union on the Storrs campus.

Financial Exploitation Training

The Department offers training to financial professionals who work with seniors to identify and report signs of fraud and exploitation through its Senior$afe™ program. In September 2024, the agency's outreach coordinators provided a Senior$afe™ training for management at Newtown Savings Bank. She provided an overview of the red flags of financial fraud and exploitation, and the benefits of making reports to Protective Services.  She also presented a Senior$afe™ training on October 15, 2024, for advisers at an investment firm in West Hartford, alongside the manager of the Department of Social Services Protective Services for the Elderly.

Community Event in New Haven for College Bound Students

The Department helped organize an event on November 13, 2024, at the Dixwell Community House (Q House) in New Haven that focused on helping high school students learn ways to help pay for college. The Student Loan Ombudsperson provided a presentation to students and their families that included an overview of the financial aid process.  The Department’s educational outreach coordinators staffed a resource table at the event and spoke one-on-one with students and their parents.

The agency’s educational outreach coordinator remains active on several state coalitions, including Connecticut Saves, the Coalition for Elder Justice in Connecticut, and the Connecticut Jump$tart Coalition for Personal Financial Literacy.  The Department is a member of the Bank On Connecticut coalition, a state-wide initiative designed to help unbanked and underbanked communities across Connecticut.  Bank On works with banks and credit unions to offer banking products and services to communities in need.

Coalitions

The Coalition for Elder Justice in Connecticut (CEJC) is a multidisciplinary group of private and public stakeholders working together to prevent elder abuse and protect the rights, independence, security, and well-being of vulnerable seniors in Connecticut.  The Department of Banking supported CEJC efforts in several ways during the 2024-2025 fiscal year.  The outreach coordinator shared resources at a CEJC networking event in June 2025 to recognize World Elder Abuse Awareness Day, which was an opportunity to meet peers, learn about services, and gain information about elder justice in our state.

The Connecticut Saves Coalition is the state campaign of America Saves, a national campaign that encourages individuals and families to save money, reduce debt, build wealth, and create better financial habits.  To recognize America Saves Week 2025, savings tips and informational posts were shared throughout the week on social media, and daily e-mails were sent to Department staff as reminders to save automatically, save for the unexpected, save for major milestones, pay down debt, and save at any age.  The educational outreach coordinators, along with the Student Loan Ombudsperson, participated in a financial action fair at UConn-Hartford in April 2025 to share their educational resources with students as a way to promote America Saves Week. The Ombudsperson joined Connecticut Saves partner agencies in a webinar in April 2025 for college students.

The Governor’s Council on Women and Girls is a group tasked with providing a coordinated state response to issues that impact the lives of women, girls, their families, and the State of Connecticut.  Commissioner Perez is a member of the Council and is active on its Economic Opportunity & Workforce Equity Subcommittee.  The agency’s outreach coordinator continues to help update the state’s financial literacy portal.

Improvements/Achievements 2024-2025

The Department held two agency-wide staff meetings during the fiscal year, on November 19, 2024, and on June 5, 2025.  These in-person events provide the opportunity for Commissioner Perez to address employees as a group in order to provide department updates and other agency items, discuss projects, and take questions from staff.  Division representatives shared industry and legislative updates, guest speakers presented professional development programs, and the agency’s Morale Committee led the staff in team-building challenges.

Strategic Plan

The Commissioner, along with the chief of staff and division directors, have developed a detailed strategic plan providing overall vision for the agency. Highlights included staff development and succession planning, policy and operational objectives as well as creating economic growth for the state.  In early 2025, agency leadership revisited the 5-year strategic plan to mark progress toward its goals and updated it as necessary.

Department of Banking Accreditation

During 2024-2025, the Department achieved reaccreditation through the Conference of State Bank Supervisors (CSBS) for banks and mortgages lenders and the National Association of State Credit Union Supervisors (NASCUS) for credit unions. The accreditation program provides in-depth reviews and continuous oversight, ensuring that the Department upholds the highest standards of excellence and strengthens the Department’s role in the financial system.  To achieve reaccreditation, the Department demonstrated compliance across key areas, including agency administration, personnel and training, examination procedures, supervision practices, and legislative authority. The Department exceeded accreditation standards in its communications with other regulators and in its leadership roles in industry, financial literacy and educational outreach, agency fiscal management, consumer complaint resolution, and the mortgage license application process. The Department also received feedback on areas on which it can improve.

The Department was first accredited for its banking regulatory program in 1986 and has been continually accredited since. It was first accredited by NASCUS in 1990 and has maintained its accreditation since. The mortgage regulatory program has been accredited since 2019.

Department Cryptocurrency Committee

The Department of Banking Cryptocurrency Committee, made up of members across all divisions, met regularly to work on educational and legislative efforts.  In October 2024, the Cryptocurrency Committee took on the task of leading the Department’s efforts related to cybersecurity training.

Cybersecurity is a growing concern for the Department. Its approach to mitigate this risk among our regulated entities has been to expand its information technology (IT) examinations and employ tools to help identify these risks and bolster training efforts among staff. One tool the Department has used is Security Scorecard, which assists Examiners in evaluating the cyber risks of companies we examine.  Agency staff continued to identify and provide various training opportunities in IT and cybersecurity for Department employees. 

The Policy and Legislation Subcommittee continued to focus their efforts on researching other states’ statutes, regulations, and legislation and following developments at the federal level regarding digital assets. The Subcommittee has been assisted by two law student interns from Quinnipiac University School of Law, who are helping with research and drafting potential legislation aimed at Digital Assets.

The Education Subcommittee continued to add content related to cryptocurrency and fintech resources to the agency website during the fiscal year.  Information pertaining to exchange-traded funds (ETFs) was developed to help investors understand the difference between ETFs and mutual funds, and to explain their potential risks and benefits.  Members of the Education Subcommittee held a book club discussion in July 2024 on Number Go Up, by Zeke Faux, which described the collapse of cryptocurrency exchange FTX.

Digital Assets Advisory Group

During 2024-2025, the Department organized a Digital Assets Advisory Group designed to offer industry expertise in the growing field of Digital Assets. The diverse group engages industry experts from several financial sectors including banking, consumer credit, securities and cryptocurrency. The goal is to consider and draft potential digital asset legislation and otherwise implement policies designed to (1) protect consumers and investors, (2) support responsible financial services innovation in the State, and (3) foster economic development. Their first meeting is scheduled to take place in September of 2025.

Financial Literacy Initiative

At times as part of settlements, the Department of Banking receives monies to be used for investor education, staff training and educational material.  Commissioner Perez established a working group to develop a plan to partner with third-party vendors to provide educational programs that meet certain objectives, namely 1) to provide personal finance tools that will prepare residents for a financially successful future, with an emphasis on women and young girls and 2) to teach how to make smart money management decisions that will enable them to be independent and financially secure.  After issuing a Request for Proposal (RFP) utilizing the state’s eProcurement system, the committee recommended several entities for the Commissioner’s consideration to receive funding for financial literacy education. 

In March 2024, Commissioner Perez joined Governor Lamont and Lt. Governor Bysiewicz to announce the release of three state grants totaling more than $400,000 that are being used to support programs focused on improving the financial wellness of Connecticut residents with a priority focus on women and girls.  The monies under the grant were ultimately issued to recipients late in 2024, and those organizations will be required to report to the Department on the progress of their programs in 2025.

Divisions

The Financial Institutions Division (FID) remains committed to continuing its communication with industry representatives.  At the conclusion of every examination FID staff meet with the bank’s or credit union’s board of directors. Examiners conducted a mix of virtual and in-person meetings during the year.  The institutions are also given the opportunity to provide feedback directly to the Banking Commissioner by completing a two-page post-examination survey.  Institutions are given the opportunity via the survey to comment on staff performance, examination efficiency, and examination time demands in an effort to improve future examinations.

Connecticut General Statutes Section 36a-70(t) allows for the organization of an innovation bank, formerly referred to as uninsured bank.  An innovation bank has all the powers of a traditional bank and is subject to all of the requirements and limitations applicable to a bank and trust company or savings bank. However, an innovation bank cannot accept retail deposits and does not need to comply with community reinvestment laws. Retail deposits are defined as deposits made by individuals who are not accredited investors under federal securities regulations. During 2024-2025, the Department chartered two innovation banks and has issued a Temporary Certificate of Authority to another. Several more applications are pending before the Department.  

The FID staff remain active members of both the CSBS and NASCUS.  Financial Institutions Division staff also serve on a variety of committees, actively participate in webinars and conference calls, and assist in the development of regulatory and best practice standards. The Division received re-accreditation from CSBS (bank area) and NASCUS (credit unions area) in November 2024, and for the first time the mortgage banking area also achieved CSBS accreditation.

The Department hosted a Credit Union CEO Roundtable on October 7, 2024, which included representatives from the credit union industry and the Credit Union League of Connecticut.  The session included a discussion of regulatory and industry issues impacting the credit union industry and provided an opportunity for credit union managers to highlight new initiatives and achievements.

The Department hosted Bank CEO Roundtable meetings on October 17 and 22, 2024, which included representatives from the banking industry and the Connecticut Bankers Association.  The sessions included a discussion of regulatory and industry issues impacting the banking industry and provided an opportunity for bank CEOs to highlight new initiatives and achievements.

The Consumer Credit Division (Consumer Credit) maintained steady involvement in several working groups with members from multiple states in the areas of mortgage, consumer finance, debt, and money services business. The working groups provide forums for discussion and feedback toward national reform within the entire consumer credit space. Division staff continued to conduct multi-state coordinated examinations of our licensed entities and the Division continued to collaborate with the Consumer Financial Protection Bureau (CFPB).

Consumer Credit continues to fill several key roles in the Nationwide Multistate Licensing System & Registry (NMLS) initiative to create “One System of Supervision,” and continues its role on the steering committee to enhance the State Examination System (SES) for examinations of all license types. Several Examiners continued to play active roles in both projects by providing necessary feedback to the developers and collaborating with other states on system processes.  While NMLS 2.0 is still in the development phase, SES is now in production and is being utilized in our state as planned.

Consumer Credit continues to participate in One Company, One Exam (OCOE) examinations in the Mortgage and Money Services Business area on an ongoing basis.

The Consumer Credit Division continued to assist the CFPB in its efforts to monitor and provide guidance to ensure smooth and accurate transfers of student loan accounts to other servicing contractors.

The Securities and Business Investments Division (SBID) has the ability to draw on the expertise of a Securities Advisory Council, a volunteer group comprised of industry representatives, academics and members of the bar, all of whom serve without compensation.  The Securities Advisory Council is on hand to provide insight to the Commissioner and staff on proposed regulatory initiatives.

The Department continued its active participation in the North American Securities Administrators Association, Inc. (NASAA).  Organized in 1919 and dedicated to investor protection, NASAA is a voluntary association whose membership consists of 67 state, provincial, and territorial securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico.  During the fiscal year, SBID staff served on NASAA committees and project groups dedicated to cybersecurity, examination training and support, broker-dealer training, investment adviser resources and training, and enforcement training.

During the fiscal year, the Securities Division achieved greater efficiency through continued use of the Electronic Filing Depository (EFD) for certain private placement filings and unit investment trust filings.  Developed by NASAA, the online EFD platform made compliance easier for securities issuers who could now make their filings simultaneously in multiple states.  The system also allowed members of the public to conduct free online searches of filings made through the system.  The Securities Division is continuing to work with NASAA on expanding the EFD platform to cover other types of filings.

The Business Office fulfilled its fiduciary responsibility by expeditiously handling total receipts of $56,049,777 through its accounting, budgeting, purchasing and financial reporting functions.  Of this total, the Business Office directed $42,899,557 to the Banking Fund and $13,060,220 to the General Fund.  The Business Office led the agency’s efforts during its recent audit by the Auditors of Public Accounts, the office responsible for state agency audits. In this audit cycle, the agency had no findings, offering a clean audit of the Department. 

The Director of the Business Office serves as one of the Department’s LEAN Coordinators and helps guide agency staff through the LEAN process. Currently, the Department is focused on decreasing paper record volumes as it continues to increase use of electronic records. The Department has identified SharePoint as the new document management system to be implemented. Document management continues to be the current LEAN initiative for the Department.

Dixwell Community House (Q House)

Commissioner Perez continues to serve on the Board of the Dixwell Community House (Q House). Representing the Governor on this board, Commissioner Perez, along with other board members, provides strategic leadership and guidance to the core anchor institution in the Dixwell/Newhallville sections of New Haven. As chair of the Board’s finance committee, he provides experienced and prudent financial oversight, ensuring its ability to continue to provide services to the community.  

New Haven Works

As a founding member and Chairman of the Board, Commissioner Perez represents Governor Lamont on the New Haven Works Board of Directors.  New Haven Works is a workforce development organization that seeks to build a middle class in an urban center and improve economic stability in all communities by providing employers with a trained and qualified workforce and connecting New Haven residents to good jobs. 

 

Committees

Commissioner Pérez engages with industry professionals by collaborating on initiatives and serving on the following committees and boards

• Chair, Conference of State Bank Supervisors (CSBS) District One 
• Chair, Conference of State Bank Supervisors (CSBS) District One (expired, April 2025)
• Board Member at-large, CSBS
• Board of Directors, Cornell Scott-Hill Health Center Foundation
• Member of the CSBS Non-Depository Supervisory Committee (NDSC)
• Committee member of the NASCUS Audit Committee, former Chairman
• Ex officio Member of the Connecticut Housing Finance Authority Board of Directors
• Ex officio Member of the Connecticut Retirement Security Authority Board
• Member of the Community Economic Development Fund Foundation Board of Directors
• Member of the State of Connecticut Department of Emergency Services and Public Protection (DESPP) Cybersecurity Committee
• Member of the Governor’s Council on Women and Girls
• Member of the Hispanic Merchants Outreach/Meet the Bankers Committee
• Chair of the New Haven Works Board of Directors
• Member of the Dixwell Community House (Q House) Finance and Fund Development Committee

Agency staff served in the following leadership roles during the fiscal year, including:  

• Co-Chair of the NASAA Broker-Dealer Training Project Group
• Co-Chair of the NASAA NEMO Training and Support Committee
• Senior Sustainability Officer (SSO) in compliance with the Governor’s Executive Order No. 1 regarding Sustainability in the State of Connecticut
• Member of the AARMR Education Committee
• Member of the American Bar Association State Regulation of Securities Committee
• Member of Bank On Connecticut
• Member of the Connecticut Jump$tart Coalition for Personal Financial Literacy
• Member of the Connecticut Management Advisory Council (MAC) serving as a Management Representative for the Department of Banking 
• Member of the Coordinating Council of the Elder Justice Coalition of Connecticut
• Member(s) of the CSBS District I Committee
• Member of the CSBS IT Advisory Committee
• Member of the CSBS Mortgage Exam Standards Working Group 
• Member of the CSBS Prudential Standards Implementation Working Group
• Member of the CSBS SES Agency Advisory Group
• Member of the NASAA Broker-Dealer Investigations and Compliance Project Group
• Member of the NASAA Cybersecurity Committee
• Member of the NASAA Enforcement Training Project Group
• Member of the NASAA FinTech Committee
• Member of the NASAA Investment Adviser Cybersecurity and Technology Project Group
• Member of the NASAA Investment Adviser Resources and Publications Project Group
• Member of the NASAA Investment Adviser Training Project Group
• Member of the NASAA Investor Education Senior Outreach Project Group
• Member of the NASAA Professional Development Committee
• Member of the NASCUS Interstate Branching/Operations Task Force
• Member of the NASCUS New Examiner Training Working Group
• Member of the State Student Loan Working Group
• Member of the UCONN Fintech Advisory Board