DOB: News Bulletin 1884 - March 31, 2000

The Department of Banking News Bulletin 

Bulletin # 1884
Week Ending March 31, 2000

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 John P. Burke, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to john.burke@ct.gov. Written comments will be considered only if they are received within ten days from the date of this bulletin.


STATE BANK ACTIVITY
Branch Activity

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days. Questions concerning branch activity should be directed to the Bank Examination Division, (860) 240-8180.
Note: dates are listed in month/day/year format.

Date Bank Location Activity
3/27/00 The Guilford Savings Bank
Guilford
61 North Main Street
Branford, CT 06405
approved
3/27/00 Putnam Savings Bank
Putnam
**50 Canal Street
    Putnam, CT 06260
approved
3/28/00 People's Bank
Bridgeport
*Stop & Shop
  566 West Main Street
  Centennial Plaza
  Meriden, CT 06450
approved
3/28/00 People's Bank
Bridgeport
*Stop & Shop
  Bridgeport Avenue
  Milford, CT 06460
approved
3/28/00 People's Bank
Bridgeport
*Stop & Shop
  136 Samson Rock Drive
  Madison, CT 06443
approved
* Limited Branch
** Limited Branch - Loan Production Office

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-dealer Assessed $6,500 for Unregistered Branch Activity

On March 28, 2000, a Consent Order was entered with respect to Spear, Leeds & Kellogg, a registered broker-dealer located at 120 Broadway, New York, New York. The Consent Order alleged that from at least January 1999 through January 2000, the firm transacted business from 411 West Putnam Avenue, Suite 420 in Greenwich, Connecticut before that location was registered as a branch office under the Connecticut Uniform Securities Act.

The Consent Order directed the firm to revise its supervisory procedures and to pay $6,500 to the department, $5,000 of which constituted an administrative fine and $1,500 of which represented reimbursement for agency investigative costs.

Amendment and Reinstatement of December 2, 1999 Order Concerning
The Modified Series 65 and Series 66 Examination

On December 2, 1999, an Order was issued Adopting the Modified Series 65 and Series 66 Examination for Investment Adviser Agents (hereinafter, the "Competency Examination Order"). It has since come to the attention of the Commissioner that paragraph (3)(d) of the Competency Examination Order contained a technical inaccuracy in the name of the entity awarding the CFP designation. Specifically, paragraph (3)(d) of the Competency Examination Order should have referenced "Certified Financial Board of Standards, Inc." instead of "International Board of Standards and Practices for Certified Financial Planners, Inc." Attached to this bulletin is an amended and restated version of the Competency Examination Order reflecting the change to paragraph (3)(d).

Dated: Tuesday, April 4, 2000

John P. Burke
Banking Commissioner


AMENDMENT AND RESTATEMENT OF DECEMBER 2, 1999 ORDER
CONCERNING THE MODIFIED SERIES 65 AND SERIES 66 EXAMINATION

SUMMARY

On December 2, 1999, the Banking Commissioner issued an Order Adopting the Modified Series 65 and Series 66 Examination for Investment Adviser Agents (hereinafter, the "Competency Examination Order"). It has since come to the attention of the Commissioner that paragraph (3)(d) of the Competency Examination Order contained a technical inaccuracy in the name of the entity awarding the CFP designation. Specifically, paragraph (3)(d) of the Competency Examination Order should have referenced "Certified Financial Board of Standards, Inc." for "International Board of Standards and Practices for Certified Financial Planners, Inc." Following is an amended and restated version of the Competency Examination Order reflecting the change to paragraph (3)(d).

TEXT OF AMENDED AND RESTATED ORDER

WHEREAS the Commissioner of Banking (the "Commissioner") is charged with the administration of 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 promulgated under the Act;

WHEREAS Section 36b-31(a) of the Act provides, in part, that: "The commissioner may from time to time make, amend and rescind such ... orders as are necessary to carry out the provisions of sections 36b-2 to 36b-33, inclusive, including ... orders governing ... applications ... and defining any terms, whether or not used in said sections, insofar as the definitions are not inconsistent with the provisions of said sections. For the purpose of ... orders, the commissioner may classify securities, persons and matters within his jurisdiction, and prescribe different requirements for different classes";

WHEREAS Section 36b-31(b) of the Act adds that: "In prescribing ... orders the commissioner may cooperate with the securities administrators of the other states ... with a view to effectuating the policy of ... [the Act] to achieve maximum uniformity in the form and content of ... applications ... wherever practicable";

WHEREAS Section 36b-31(b) of the Act also provides that: "No order may be made, amended or rescinded unless the commissioner finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of sections 36b-2 to 36b-33, inclusive";

WHEREAS the Commissioner finds that the issuance of this order is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of the Act;

WHEREAS Section 36b-15(b)(6) of the Act provides that "the commissioner may by regulation provide for an examination, which may be written or oral or both, to be taken by any class of or all applicants, as well as persons who represent or will represent an investment adviser in doing any of the acts which make him an investment adviser";

WHEREAS pursuant to the authority granted under Section 36b-15(b)(6) of the Act, the Commissioner promulgated Section 36b-31-15e(e) of the Regulations which requires that, effective October 1, 1994, "each applicant for registration as an investment adviser agent ... supply evidence to the commissioner that such applicant has taken and successfully passed the [Series 65] Uniform Investment Adviser Law Examination or such other examination determined by the commissioner to be acceptable in lieu thereof";

WHEREAS Section 36b-31-31c of the Regulations provides that: "The commissioner may exempt a person ... from a specified provision of ... the regulations upon a finding that such exemption is in the public interest";

WHEREAS the Commissioner finds that granting the related exemptive relief set forth in this Order is in the public interest;

WHEREAS the North American Securities Administrators Association, Inc. (NASAA), an association of state and Canadian securities regulators, has been instrumental in developing a modified version of the Series 65 examination designed to test investment advisory competency (the "Modified Series 65 Examination"), which Modified Series 65 Examination is scheduled to be available on or after January 1, 2000;

WHEREAS NASAA has also been instrumental in developing the Series 66 Uniform Combined State Law Examination, which represents a combination of the Series 63 and Series 65 examinations;

 
 
NOW THEREFORE THE COMMISSIONER ORDERS AS FOLLOWS:
1.
 
Effective January 1, 2000, for purposes of Section 36b-31-15e(e) of the Regulations, the Modified Series 65 examination or the Series 66 examination shall be deemed an acceptable substitute in fulfillment of the Section 36b-31-15e(e) examination requirement for new investment adviser agent applicants;
2.
 
The following individuals shall be "grandfathered" from having to pass the examination described in paragraph (1) of this Order: (a) Any individual registered under the Act as an investment adviser agent or an investment adviser on January 1, 2000; or (b) Any individual who has passed the previous version of the Series 65 or the Series 66 examination and who has been continuously registered as an investment adviser agent or as an investment adviser in any other state, as defined in Section 36b-3(19) of the Act, for the immediately preceding two years. Notwith- standing the provisions of this paragraph, the Commissioner may require that any individual otherwise "grandfathered" take either the Modified Series 65 examination or the Series 66 examination if retaking such examination is necessary in light of the individual's disciplinary history or limited areas of knowledge or expertise;
3. Effective January 1, 2000, the Commissioner may waive the examination requirement described in paragraph (1) of this Order for any investment adviser agent who: (a) has received the Chartered Investment Counselor (CIC) designation conferred by the Investment Counsel Association of America (ICAA); (b) has been designated as a Chartered Financial Analyst (CFA) by the Association for Investment Management and Research; (c) is a certified public accountant and has earned the Personal Financial Specialist (PFS) designation conferred by the American Institute of Certified Public Accountants; or (d) has earned the Certified Financial Planner (CFP) designation awarded by the Certified Financial Planner Board of Standards, Inc.;
4. Nothing in this Order shall preclude the Commissioner from granting discretionary relief from the examination requirements of this Order based upon a comprehensive evaluation of the applicant's prior employment, educational background, professional designations and disciplinary history, or from imposing such additional conditions on registration as may be necessary in the public interest.
5. The terms and conditions of this Order shall become effective on January 1, 2000 and shall remain in effect until modified, superseded or vacated by the Commissioner or other lawful authority.

Originally issued December 2, 1999

Amended and Restated this 28th day of March, 2000. { }

John P. Burke
Banking Commissioner