DOB: News Bulletin 2028 - January 3, 2003

The Department of Banking News Bulletin 

Bulletin # 2028
Week Ending January 3, 2003

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, Commissioner of Banking, 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

On December 30, 2002, pursuant to Section 67 of Public Act 02-73, approval was granted to Amphenol RF Operations Employees Credit Union, Inc., Danbury, Connecticut, a Connecticut credit union, to merge with and into Danbury Cyanamid Employees Credit Union, Inc., Danbury, Connecticut, a Connecticut credit union.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order Conditioning Registration as a Broker-dealer Issued

On December 19, 2002, the Commissioner issued a Consent Order under the Connecticut Uniform Securities Act conditioning the registration of MIT Associates, LLC as a broker-dealer. MIT Associates, LLC, a newly formed entity, maintains its business address at 1171 East Putnam Avenue, Riverside, Connecticut. The Consent Order alleged that certain principals of the brokerage firm were previously associated in a managerial capacity with MIT Asset Management, Inc., an investment advisory firm; and that the principals' failure to ensure that MIT Asset Management, Inc. complied with state investment adviser registration provisions called into question whether the broker-dealer applicant possessed sufficient knowledge and experience in the regulatory compliance aspects of the securities business.

The Consent Order Conditioning Registration as a Broker-dealer limited the broker-dealer applicant's securities business to the offer and sale of private placements for a period of two years. The Consent Order also prohibited the firm from transacting securities business with Connecticut customers who did not qualify as "accredited investors" as that term is defined in Rule 501(a) of federal Regulation D. In addition, the Consent Order Conditioning Registration as a Broker-dealer 1) required the applicant to file quarterly reports regarding any securities-related complaints, actions or proceedings for two years; 2) directed the applicant to notify the agency within five business days following any change in the applicant's officers, control persons or individuals identified in the applicant's supervisory procedures manual as having responsibility for regulatory compliance; and 3) directed the applicant to keep its books and records open to inspection by the Commissioner in accordance with state law. MIT Associates, LLC became registered as a broker-dealer under the Connecticut Uniform Securities Act on December 19, 2002.

Broker-dealer Fined $1,500 for Unregistered Branch Office Activity

On January 2, 2003, the Commissioner entered into a Stipulation and Agreement with Access Financial Group, Inc., a Connecticut-registered broker-dealer having its principal office at 118 North Clinton Street, Suite 250, Chicago, Illinois. The Stipulation and Agreement claimed that, commencing in October 1995, the firm transacted business from 241 Cedar Lane, Torrington, Connecticut prior to that site being registered as a branch office under the Connecticut Uniform Securities Act. The Torrington location has since been registered as a branch office in Connecticut.

Pursuant to the Stipulation and Agreement, the firm agreed to pay a $1,500 fine to the agency and to implement revised supervisory and compliance procedures designed to prevent and detect violations of Connecticut branch office registration requirements.

Broker-dealer Fined $1,000 for Unregistered Branch Office Activity

On January 2, 2003, the Commissioner entered into a Stipulation and Agreement with RBC Dominion Securities Corporation, a Connecticut-registered broker-dealer having its principal office at One Liberty Plaza, New York, New York. The Stipulation and Agreement alleged that, commencing in October 2002, the firm transacted business from One East Weaver Street, Greenwich, Connecticut prior to that location being registered as a branch office under the Connecticut Uniform Securities Act. The Greenwich site has since been registered as a branch office in Connecticut.

Pursuant to the Stipulation and Agreement, the firm agreed to pay a $1,000 fine to the agency and to implement revised supervisory and compliance procedures designed to prevent and detect violations of Connecticut branch office registration requirements.

Dated: Tuesday, January 7, 2003

John P. Burke
Commissioner