DOB: News Bulletin 1929 - February 9, 2001

The Department of Banking News Bulletin 

Bulletin # 1929
Week Ending February 9, 2001

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.


CREDIT UNION DIVISION ACTIVITY
Merger

Pursuant to Section 36a-470 of the Connecticut General Statutes, on February 9, 2001, Taylor & Fenn Co. Employees Credit Union, Inc., Windsor, filed an application to merge with and into The Kief Protective Mutual Benefit Association Incorporated, Bloomfield.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Two Boston Firms Assessed $28,000 Jointly and Severally for Unregistered Branch Activity

On February 5, 2001, the Banking Commissioner entered a Consent Order with respect to BankBoston Investor Services, Inc. of 100 Federal Street, Boston, Massachusetts, and FIS Securities, Inc. of 75 State Street, Boston, Massachusetts. Both firms are registered as broker-dealers under the Connecticut Uniform Securities Act and are under the common ownership and control of Fleet Boston Corporation, a holding company. The Consent Order alleged that 1) at various times between December 1998 and September 1999, FIS Securities, Inc. violated Section 36b-6(d) of the Act by transacting securities business from multiple Connecticut locations at a time when no branch office registrations were in effect for such locations; 2) during the months of August 2000 and September 2000, BankBoston Investor Services, Inc. violated Section 36b-6(d) of the Act by transacting securities business from multiple Connecticut locations at a time when no branch office registrations were in effect for such offices; and 3) both FIS Securities, Inc. and BankBoston Investor Services, Inc. violated Section 36b-31-6f of the Regulations in that each failed to establish, maintain and implement a supervisory structure designed to achieve compliance with Connecticut branch office registration, branch office reporting and agent qualification requirements.

The Consent Order assessed both firms $28,000 jointly and severally. Of that amount, $25,000 constituted an administrative fine, and the balance reflected reimbursement for agency investigative costs. The Consent Order also directed both firms to cease and desist from violating regulatory provisions governing branch office registration, operations and supervision. In addition, the Consent Order mandated that the firms revise and implement supervisory procedures designed to achieve regulatory compliance.

Dated: Tuesday, February 14, 2001

John P. Burke
Banking Commissioner