DOB: News Bulletin 2187 - January 20, 2006

The Department of Banking News Bulletin 

Bulletin # 2187
Week Ending January 20, 2006

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.


BRANCH ACTIVITY
State Bank 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 Financial Institutions Division, (860) 240-8180.

Date Bank Location Activity
1/16/06
Rockville Bank
Rockville
6 Fieldstone Road
a/k/a 146 Merrow Road
Tolland, CT  06084
relocation
opening
date
1/17/06
Citizens Bank of Connecticut
New London
200 Main Street
Middletown, CT  06457
discontinue
lobby
service
1/17/06
Rockville Bank
Rockville
902 Main Street
So. Glastonbury, CT  06073
opening
date
1/19/06
People's Bank
Bridgeport
460 Elm Street
West Haven, CT  06516
filed
1/19/06
People's Bank
Bridgeport
2145 Fairfield Avenue
Bridgeport, CT  06605
filed
1/20/06
Valley Bank
Bristol
98 Main Street
Southington, CT  06489
convert
limited to
full service

INTERSTATE DE NOVO BRANCH
 
On January 20, 2006, pursuant to Sections 36a-412(a)(2) and 36a-145(b)(1) of the Connecticut General Statutes, The Bank of Western Massachusetts, a Massachusetts-chartered bank with its main office in Springfield, Massachusetts, filed an application to establish a de novo branch at 49 Hazard Avenue, Enfield, Connecticut.
 
REORGANIZATION INTO A HOLDING COMPANY STRUCTURE

On January 17, 2006, pursuant to Section 36a-70(p) of the Connecticut General Statutes, a Temporary Certificate of Authority was issued to SBT Bancorp, Inc., a Connecticut corporation, for the establishment of SBT Interim Bank as an interim Connecticut bank, and pursuant to Section 36a-181 of the Connecticut General Statutes, Simsbury Bank & Trust Company, Inc., Simsbury, Connecticut, a Connecticut state-chartered bank, received approval to reorganize into a holding company structure to be known as SBT Bancorp, Inc., a Connecticut corporation with Simsbury Bank & Trust Company, Inc. as its wholly–owned subsidiary.  The Commissioner, pursuant to Section 36a-125 of the Connecticut General Statutes, also approved the merger of SBT Interim Bank with and into Simsbury Bank & Trust Company, Inc.
 
CREDIT UNION ACTIVITY
Field of Membership
 
On January 17, 2006, pursuant to Section 36a-462b(d) of the Connecticut General Statutes, Corporate America Family Credit Union, Inc., Elgin, Illinois, received approval to expand its field of membership in the State of Connecticut  to include employees of Crowley Auto Group, Bristol.
 
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
 
On December 2, 2005, pursuant to Section 36a-581 of the Connecticut General Statutes, Main Street Check Cashers, LLC filed an application to operate a check cashing service general facility at 1611 Main Street, Hartford, Connecticut.
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Investment Adviser Assessed $10,900 for Unregistered Investment
Advisory Activity, Failure to Reduce Advisory Contracts to Writing
 
On January 17, 2006, the Commissioner entered a Consent Order with respect to Black Diamond Research, LLC, an applicant for investment adviser registration located at 51 East 42nd Street, Suite 416, New York, New York.   The Consent Order alleged that 1) from at least 2003, the firm transacted business as an investment adviser absent registration under the Connecticut Uniform Securities Act; and 2) the firm violated Section 36b-5(1) of the Act by entering into, extending or renewing investment advisory contracts for Connecticut clients without reducing those contracts to writing and providing mandated contractual disclosures.  The Consent Order directed the firm to pay $10,900 to the department.  Of that amount, $10,000 constituted an administrative fine, $400 represented past due registration fees and $500 constituted reimbursement for agency investigative costs.  In addition, the Consent Order required that the firm implement revised supervisory and compliance procedures and provide quarterly reports to the agency for two years regarding any securities-related complaints, actions or proceedings involving Connecticut individuals and entities.
 
Black Diamond Research, LLC became registered as an investment adviser under the Act on January 17, 2006.
 
Commissioner Extends Grant of Temporary No-Action Relief
to Financial Professionals, Customers and Clients
Displaced Due to Hurricanes Katrina and Rita
 
On January 19, 2006, the Commissioner extended until June 30, 2006 the agency’s October 18, 2005 No-Enforcement Action Determination Affecting Persons Displaced as a Result of Hurricane Katrina or Rita.  The no-action determination had expired on December 31, 2005.  The October 18, 2005 no-action determination had affected customers or clients (“Pre-existing Customers and Clients”) with whom broker-dealers, investment advisers, agents and investment adviser agents (“Financial Professionals”) had a bona fide, pre-existing securities brokerage or investment advisory relationship on or before August 29, 2005 and while the Financial Professional was domiciled in its home state.  The No-Enforcement Action Determination, however, did not permit such Financial Professionals to solicit new customers or clients in Connecticut.
 
The No-Enforcement Action Determination concluded that, where Pre-existing Customers and Clients of Financial Professionals had been displaced to Connecticut due to Hurricane Katrina or Rita and Financial Professionals did business with those Pre-existing Customers and Clients temporarily located in this state, the Securities and Business Investments Division (the “Division”) would not take enforcement action for violations of the registration and notice filing requirements in Section 36b-6 of the Connecticut Uniform Securities Act if the Financial Professional satisfied four conditions:  1) The Financial Professional only effected securities transactions or rendered investment advisory services to Pre-existing Customers and Clients as defined in the No-Enforcement Action Determination; 2) the Financial Professional was registered or exempt from registration in the Pre-existing Customer or Client’s home state; 3) the Financial Professional was registered or exempt from registration with the SEC, a self-regulatory organization and the home state of the Financial Professional to the extent required by law; and 4) the Financial Professional disclosed to displaced Pre-existing Customers and Clients who were temporarily in this state that the Financial Professional was not registered under the Connecticut Uniform Securities Act.  In addition, the Commissioner determined that, where a Financial Professional had been temporarily displaced to Connecticut due to Hurricane Katrina or Rita, the Division would not take enforcement action for violations of the registration and notice filing requirements in Section 36b-6 of the Act if the Financial Professional were to effect securities transactions or render investment advisory services from Connecticut on behalf of Pre-existing Customers and Clients.  The no-action position was conditioned on 1) the Financial Professional providing written or electronic notice to the Division indicating that the Financial Professional had relocated to Connecticut and planned to transact securities business or render investment advisory service in reliance on the no-action determination; 2) the Financial Professional disclosed to Pre-existing Customers and Clients that it was temporarily domiciled in Connecticut and was not registered under the Connecticut Uniform Securities Act; 3) the Financial Professional was registered with the home state from which it was displaced or, in the case of an SEC-registered investment adviser, had filed a notice with the home state from which it was displaced; and 4) if a broker-dealer, the Financial Professional was registered with the SEC and a self-regulatory organization.

The full text of the extended No-Enforcement Action Determination can be found at our Web site, www.ct.gov/dob.
 
         Dated:  Tuesday, January 24, 2006
 
         John P. Burke
         Commissioner