News & Publications

NASAA President Claire McHenry

Publication Date: Sep 14, 2023

Imposter Scams

Publication Date: Sep 7, 2023

           

Are You an Informed Investor?

Will the Real Adviser or Broker Please Stand Up?

Scammers will go to any length to steal your money and personal information, including using technology and publicly available information to impersonate someone else. By taking information from a public database of brokers and investment advisers, a scammer could pretend to be a legitimate investment professional, earn your trust, and steal your identity or convince you to send them money. A little bit of research can prevent you from falling for their schemes. Take the first step in your research by reviewing the PDF below.

 08.29.23 Imposter Scams.pdf

Informed Investor Advisory

Publication Date: Aug 25, 2023

Are You an Informed Investor?

Other People's Money Investment Scams

Securities regulators have seen a rise in schemes where scammers target victims with the promise of making big returns by trading “other people’s money.” This frequently occurs online, with the scammer posting an investment opportunity on a social media platform or reaching out to unwitting recipients via a messaging application (such as WhatsApp). Investors should be cautious when approached with unsolicited investment opportunities. Learn more in the PDF below.

Informed Investor Advisory

State Recoups Overcharges

Publication Date: Aug 2, 2023

State Recoups Overcharges for Investors in Commodity Firm Bankruptcy

State Recoups Overcharges from Lear Capital

Robinhood Financial Settlement

Publication Date: Jul 6, 2023

The NDBF announced it has joined a multi-state settlement with Robinhood Financial LLC, which will pay up to $10.2 million in penalties for operational and technical failures that harmed main street investors. Thanks to states working together, local issues became national settlements and state securities regulators were able to protect investors.

Follow the link to read more on this issue.

Robinhood Financial LLC settlement

NDBF Marks World Elder Abuse Awareness Day 2023

Publication Date: Jun 14, 2023

June 14, 2023 — In recognition of World Elder Abuse Awareness Day on June 15, the Nebraska Department of Banking and Finance (NDBF) reminds financial professionals and the public throughout Nebraska to be on the lookout for signs of elder financial abuse, including potential exploitation and scams. To help protect senior investors, the NDBF recommends investors provide the name of someone they trust as a contact on their investment accounts.

A trusted contact is a person authorized by the investor to allow financial firms, in limited circumstances, to contact them when there are concerns about activity in an account. A trusted contact may be a family member, attorney, accountant or another third-party that respects the investor’s privacy and understands how to handle the responsibility.

“It is a sad truth that there are folks looking to prey on unsuspecting investors and all too often they target older individuals. One way to help detect and even prevent financial exploitation is to add a trusted contact to investment accounts. Having a trusted contact provides another layer of safety for investment accounts,” said Claire McHenry, NDBF Deputy Director of Securities. “The Department is actively working to combat cases of abuse and exploitation by providing tools and resources for investors and caregivers.”

The North American Securities Administrators Association (NASAA), of which NDBF is a member, has developed resources on what is a trusted contact, why they are important and how they help investors to protect themselves. You can find NASAA’s trusted contact videos on its YouTube page. There are also factsheets and links to other helpful information on trusted contacts on NASAA’s Investor Education page.

McHenry asks anyone with suspicions of possible senior financial exploitation to contact the Nebraska Department of Banking and Finance at 402-471-2171 or via the NDBF website, https://ndbf.nebraska.gov/ in the Complaints section.

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World Elder Abuse Awareness Day

Financial Awareness Month

Publication Date: Apr 14, 2023

Governor Pillen Proclaims April as Financial Awareness Month

April 14, 2023 (LINCOLN, NE) –On April 13th, Gov. Jim Pillen proclaimed the month of April as Financial Awareness Month in Nebraska. The proclamation recognizes the importance of financial awareness to Nebraskans and Nebraska as a leader in financial innovation, financial literacy education, and consumer and vulnerable adult protection.

The month-long financial awareness campaign is an initiative from the Nebraska Council on Economic Education (NCEE) and the Nebraska Department of Banking and Finance (NDBF). Working together, the chartered, licensed financial industry, NCEE & NDBF conducting a variety of educational activities in schools, workplaces, and communities this month, and throughout the year, to educate Nebraskans about the importance of setting goals, making wise financial decisions, and protecting yourself and your financial future.

“Financial awareness is more that understanding how to spend money, it is a lifelong pursuit of using information available at the time of spending, savings, investing to make informed financial decisions.   A savings program may provide peace of mind for a rainy day or a dream of a well-earned vacation.  A credit card may present concerning fees, or it may be a safety backup that gets you home in an emergency.  Times of increasing interest rates require consideration before using optional debt, that is not quickly repaid.  Regardless of the month, now is great time to visit with your existing financial professional or open a new relationship with a bank, credit union, or registered securities professional to help protect and grow your finances,” said NDBF Director Kelly Lammers. “This next month and in months to come follow the Department on Facebook and Linked in.   Today’s world of as we address There have been a number of recent financial initiatives, from the Financial Innovation Act to added consumer protections for vulnerable and senior adults. It’s important to review the basics as well as learn about new products like cryptocurrencies and digital assets to improve your financial awareness.”

“For NCEE’s almost 60-year history, we have focused on K-12 economic education. If we can reach kids early and install good financial habits, we can change their financial futures,” said NCEE president, Dr. Jennifer Davidson. “With WalletHub recently ranking Nebraska as the most financial literate state, we know that it is working; however, there is always more that can be done. I encourage everyone to engage with something during this April Financial Awareness Month. Financial literacy is a life-long pursuit. No matter what age and stage you’re at, we can always do something to better our financial position.”

One of NCEE’s signature programs is the Nebraska In-School Savings Program. These programs give select upper elementary students an opportunity to gain job skills working as school branch tellers. Student tellers from several Nebraska in school savings program will join in the proclamation signing celebration. All students in schools with a savings programs are given the opportunity to participate and save weekly. Students are rewarded with incentives for frequency of saving (not amounts), as the program is designed to reward and instill the habit of saving.

NDBF Director Lammers and Dr. Jennifer Davidson, President of NCEE, encourage all Nebraskans to take part in financial awareness efforts offered by NCEE, NDBF, and other organizations, including:

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NDBF Financial Awareness Month 2023

Today's Banking Questions

Publication Date: Mar 21, 2023

Resources For Today’s Banking Questions

 

The mission of the Nebraska Department of Banking and Finance (NDBF) is to “protect and maintain the public confidence through the fair, efficient, and experienced supervision of the state-regulated financial services industries.”  NDBF is actively working to stay informed of national events and their impact on Nebraska.  

Nebraska banks and credit unions are well capitalized and have strong reserves. Bank depositors are protected by the Federal Deposit Insurance Corporation (FDIC) insurance fund. This FDIC fund is supported by all banks. Credit union share accounts are protected by the National Credit Union Share Insurance Fund (NCUSIF) administered by the National Credit Union Administration (NCUA).  These funds exist precisely for situations such as this.

NDBF has put together a list of links to help answer consumer questions. Please follow these helpful links to get more information on how you can stay informed and protected.

FDIC’s Electronic Deposit Insurance Estimator (EDIE)

EDIE lets consumers and bankers know, on a per-bank basis, how the insurance rules and limits apply to a depositor's specific group of deposit accounts — what's insured and what portion (if any) exceeds coverage limits at that bank. Visit FDIC: Electronic Deposit Insurance Estimator (EDIE) for more information.

 

 

NCUA’s Share Insurance Estimator

The NCUA’s Share Insurance Estimator lets consumers, credit unions, and their members know how its share insurance rules apply to member share accounts — what's insured and what portion (if any) exceeds coverage limits. Visit

Insurance Estimator | MyCreditUnion.gov.

 

 

 

Federal Reserve Board’s Bank Term Funding Program

To support American businesses and households, the Federal Reserve Board announced it will make available additional funding to eligible depository institutions to help assure banks can meet the needs of all their depositors. To find out more information about this Bank Term Funding Program, visit https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm

 

Be Alert!

Fraudsters and impersonators will take advantage of the current banking situation. Protect yourself against impersonators pretending to be the FDIC or NCUA.

 

To find out more about the FDIC actions in the most recent out of state closings, visit https://www.fdic.gov/news/press-releases/2023/pr23019.html

 

Nexo Settlement

Publication Date: Feb 14, 2023

NDBF Joins with State Securities Regulators and SEC in a $45 Million Settlement with Nexo Capital Over Interest-Bearing Accounts

February 14, 2023 (Lincoln, NE) – The Nebraska Department of Banking & Finance (NDBF) will receive a payment of $424,528.30 from Nexo Capital, Inc. (Nexo) after entering a Consent Order with Nexo. The NDBF joined other state securities regulators and the U.S. Securities Exchange Commission (SEC) in this $45 million settlement with Nexo. 

In the past year, a North American Securities Administrators Association (“NASAA”) working group of state regulators conducted a comprehensive investigation into Nexo’s alleged offer and sale of unregistered securities in the form of its Earned Interest Product (EIP).

Nexo is a Cayman Islands corporation established in 2018 that provides virtual currency-related financial services to retail and institutional borrowers in the United States, including trading, borrowing, and lending services. During the investigation, it was discovered that EIP investors could passively earn interest on digital assets by loaning those assets to Nexo. This included 346 Nebraska EIP accounts with a value of $2,480,000 as of July 31, 2022. Nexo maintained total discretion over the revenue-generating activities utilized to earn returns for investors. The company offered and promoted the EIP and other products to investors in the U.S. via its website and social media channels suggesting in some instances that investors could obtain returns as high as 36%.

Nexo is alleged to have failed to comply with state registration requirements and, as a result, investors were sold unregistered securities in violation of state law and additionally were deprived of critical information and disclosures necessary to understand the potential risks of the EIP.

“Securities laws are designed to protect investors through full and fair disclosure and the registration of securities is essential to that protection.” said NDBF Deputy Director Claire McHenry. “State securities regulators continue to lead the effort to ensure companies involved in offering digital asset investments comply with our laws and that investors are treated fairly.”

For the states participating in the settlement, Nexo will pay a fine of $424,528.30 and cease offering and selling the EIP or accepting further investments in the EIP until such activities are compliant with applicable state and federal securities laws. For any EIP accounts, savings wallets, and non-collateral wallets held by Nebraska residents after April 1, 2023, Nexo will assist customers with any withdrawals or transfers.

NDBF would like to thank its fellow NASAA member agencies, especially the multistate working group, for its coordinated efforts and the SEC for their collaboration and assistance.

NDBF encourages Nebraskans to review financial opportunities carefully and to check the registration status of the investment and the person offering it by visiting ndbf.nebraska.gov.

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Nexo Press Release 02-14-2023

Valentine's Day Scams

Publication Date: Feb 13, 2023

Swipe Left: Don’t Fall in Love with a Scammer this Valentine’s Day. Online romance scams are on the rise so stay alert.

February 14, 2023 — Millions of people use online dating apps and dream of meeting that perfect someone. Unfortunately, scammers are also looking to use these same apps to defraud unwary investors. Take steps to help make sure your dream does not turn into a nightmare by falling for a romance scam. This Valentine’s Day, it’s important to keep in mind that romance scams are on the rise. Take steps to help make sure your dream does not become a nightmare by falling for a romance scam.

A romance scam occurs when a person adopts a fake online identity to gain a person’s affection and trust. Scammers use the illusion of romance or intimacy to manipulate or steal from the victim. Scammers will use various tricks to come across as genuine, but one telltale sign that you are communicating with a scammer is if they refuse to meet in person. Often, the scammer will conveniently live outside the United States or works on an overseas project. Eventually, the person will ask for money for an amazing business opportunity or even a medical emergency. They may ask you to send funds through a wire transfer or ask for your bank account details. These con artists are on most dating and social media sites.

“If you give your heart out, don’t lose your wallet,” said Kelly Lammers, Director of Nebraska Department of Banking and Finance. “Protect yourself by paying attention to the warning signs and if it seems too good to be true, then it probably is.”

Go to ndbf.nebraska.gov for more information on what Nebraska resources are available for victims.

If you or someone you know has been scammed, report it to Nebraska Department of Banking and Finance at 402-471-2171 or via our website in the Complaints section.

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Swipe Left

First SOJO and Jesse Hill

Publication Date: Dec 29, 2022

NDBF and the Office of the Nebraska Attorney General file for Injunctive and Other Relief against First SOJO Capital Group, LLC and Jesse Hill for Violations of the Securities Act

December 29, 2022 (Lincoln, NE) – The Nebraska Department of Banking and Finance (NDBF) announced today that the Office of the Attorney General filed a Complaint for Injunctive and Other Relief in the District Court of Lancaster County against Jesse Hill, First SOJO Capital Group, LLC, and related entities under the Securities Act of Nebraska. The State requested that the Court enter a temporary restraining order freezing certain assets and enjoining Hill, First SOJO Capital Group, LLC, and the related entities from violating the Securities Act. The temporary restraining order was granted by the Court late last night. The complaint also seeks the appointment of a receiver to protect investor assets, and recission, restitution, or disgorgement as appropriate.

First SOJO Capital Group, LLC is a registered investment adviser in the State of Nebraska that manages two pooled investment vehicles, Outlier Fund I, LP, and Outlier Fund II, LP. Hill is the managing member and manager for First SOJO Capital Group, LLC. Hill was previously the subject of a NDBF Consent Order in October 2018 where Hill raised money and managed a pooled investment vehicle through an entity named JT Equity Trading, LLC without being registered as required by the Securities Act of Nebraska.

The complaint alleges that Hill executed false control agreements with financial institutions regarding Aaron Marshbanks’ and Marshbanks’ limited liability companies’ investments, which enabled Marshbanks to obtain loans and lines of credit from financial institutions. The complaint also alleges Outlier Fund I, LP, and Outlier Fund II, LP incurred sizable trading losses in January and February 2022. Despite these significant losses, the complaint alleges that Hill continued to misrepresent the value of the investments and has promised investors they will receive a return on their investment. The complaint alleges that Hill violated the prior Consent Order with NDBF, and that First SOJO Capital Group, LLC is currently insolvent and is in violation of other provisions of the Securities Act of Nebraska. The complaint also names JT Equity Trading, LLC, Outlier Fund I, LP, Outlier Fund II, LP, and Tabitha Hill, for purposes of obtaining relief.

NDBF’s investigations to determine compliance with the laws under its supervision are ongoing in this matter.

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File for Relief Against First SOJO and Jesse Hill

Rulemaking Hearing Title 45

Publication Date: Dec 23, 2022

NOTICE OF RULEMAKING HEARING

NEBRASKA DEPARTMENT OF BANKING AND FINANCE

Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on February 9, 2023, commencing at 9:30 a.m. CST, at the First Nebraska Administrative Building, 1526 K Street, Suite 300, Lincoln, Nebraska 68508.

The purpose of the hearing is to take testimony and evidence concerning the following revisions to Title 45 of the Rules and Regulations of the Department:

  1. 45 NAC 1 – Adopts guidance applicable to all Chapters in Title 45.  The rule sets forth subject matter authority of the Department of Banking and Finance and the Director’s ability to take action to protect the public interest when the Director determines it necessary; provides necessary administrative information; and establishes the methods and impact of filing documents and payment of fees.
  2. 45 NAC 2 – Adopts minimum information and record requirements that banks must obtain and maintain for their entity customers.  The rule incorporates and updates the provisions of existing 45 NAC 6, “General.”  Adds identification and resolution requirements for different entity customers, including limited liability companies, and clarifies the entities covered as public or not-for-profit organizations.
  3. 45 NAC 3 – Adopts minimum record keeping requirements for data centers of banks and specifies data fields for the different accounts in banks.  The rule incorporates and updates many of the provisions of existing 45 NAC 23, “Minimum Record Keeping Requirements.”  The revisions recognize that banks may retain records in electronic format, and remove an obsolete Exhibit A and an outdated Consumer Loan Reference Chart,  which is an unnecessary part of the rule.
  4. 45 NAC 4 – Adopts minimum retention periods for bank records.  The rule incorporates and updates many of the provisions of existing 45 NAC 27, “Schedule for Records Retention by Banks.”  The revisions define and recognize retention of records in an electronic format; update language regarding records of property escheated to the State Treasurer; provide a standard for existing microfilmed records; and a cross-referencing clarification for banks with trust department records.
  5. 45 NAC 5 – Adopts minimum retention periods for records of free-standing trust companies and trust departments of banks.  The rule incorporates and updates many of the provisions of existing 45 NAC 32, “Schedule for Retention of Records: Banks Exercising Trust Powers and Trust Companies.”  The revisions track a number of the changes proposed in 45 NAC 4, which define and recognize retention of records in an electronic format; update language regarding records of property escheated to the State Treasurer; provide standards for records of safe deposit boxes and for existing microfilmed records; and include a cross-referencing clarification for bank records that are not a part of the bank’s trust department.
  6. 45 NAC 6 – Provides procedures for the filing of bank Articles of Incorporation and Bylaws.  The rule incorporates and expands the provisions of existing 45 NAC 8, “Articles of Incorporation,” by establishing procedures for banks filing Bylaws with the Department, formalizing the Department’s review and no-objection procedures of corporate documents, and by providing cross references to relevant statutes.
  7. 45 NAC 7 – Amends the rule requiring banks to obtain bond riders or endorsements to cover persons and entities that perform data processing services for the bank and specifying provisions required in the rider/endorsement.  The proposed amendments expand the type of entities banks may contract with to provide these services and the list of processor-related persons who are to be deemed as bank employees for purposes of bond coverage, and update the title.
  8. 45 NAC 8 – Repeal and Reissue 45 NAC 8, under the new title, "Changes In Paid-In Capital Stock."  The proposed rule incorporates and expands provisions currently contained in existing 45 NAC 12, "Paid-In Capital Stock Increase," by establishing procedures for a bank decreasing its paid-in capital stock and updating the procedures for an increase in capital stock.  The revisions set time frames for filing notices with the Department; direct when a bank may need to update its Articles of Incorporation as a result of capital stock changes; and establish agency approval and no-objection processes.
  9. 45 NAC 9 – Repeal the title of 45 NAC 9, “Change in Control,” as the rule itself was repealed in 1987.  Reissue the proposed rule titled, “Active Executive Officers,” to provide practices and procedures for bank executive officer license applications, renewals, surrenders, cancellations, and revocations.  It incorporates, updates, and re-organizes many of the provisions of existing 45 NAC 28, “Rules of Practice and Procedure Applicable to Executive Officers Licenses Obtained from the Nebraska Department of Banking and Finance Pursuant to Nebraska Revised Statutes, 1943.”  The revisions address executive officers of banks which opt out of the licensing process; eliminate distinctions between Class I and Class II licenses; adopt and eliminate definitions; formalize application standards; provide for the limited transfer of a license; update license surrender and cancellation provisions; establish the evidence necessary for license suspension or suspension of executive officer authority; provide for the levy of costs in disciplinary proceedings; set post-suspension and revocation requirements; and provide for the issuance of conditional licenses.
  10. 45 NAC 10 – Adopts standards under which bank directors, officers, and employees may guarantee loans at their employing bank without violating statutory limits for insider borrowing.  The proposed rule, “Insider Loan Guarantees,” incorporates, updates, and re-organizes many of the provisions of existing 45 NAC 16, “Director, Officer or Employee Borrowing;” defines terms; and corrects a statutory reference.
  11. 45 NAC 11 – Repeal the title of 45 NAC 11, “Board of Directors; Residence,” as the rule itself was repealed in 1991.  Reissue the proposed rule, “Executive Officer Borrowing Reports,” to establish standards for reports that bank executive officers are required to make when they borrow from a financial institution other than their employing bank; correct a statutory reference; and incorporate current law.  The proposed rule incorporates and updates provisions currently contained in existing 45 NAC 17, “Officer Borrowing.”
  12. 45 NAC 12 – Repeal and Reissue 45 NAC 12 under the new title,  “Directors' Examinations Performed by Certified Public Accountants or Public Accountants,” to provide the standards for certified public accountants and public accountants to conduct directors’ examinations of banks; update the criteria to determine auditor independence; authorize a bank’s Board of Directors to adopt specified external auditing standards and to appoint an independent person to conduct the directors’ examination; and provide that the Department may require enhanced audit procedures due to safety and soundness concerns.  The proposed rule incorporates and expands provisions currently contained in existing 45 NAC 24 of the same title.
  13. 45 NAC 13 – Adopts standards governing audits and directors’ examinations of banks, including reconcilement and testing of accounts and review of capital accounts; allows for a risk-focused review of accounts; requires inquiry into other financial risk activity; removes an obsolete reference to a handbook on statistical probability; and provides an option for electronic submission of annual reports to the Department.  Revises and extends the date for submission of the audit report to 120 days after the completion of the audit, or 120 days after calendar year-end for periodic audits.  The proposed rule incorporates and updates provisions of existing 45 NAC 25 of the same title.
  14. 45 NAC 14 – Adopts standards for banks to qualify for the statutory exception to the lending limit for loans secured by livestock; defines a term; removes a reference to an obsolete form; provides requirements for inspections and appraisals of livestock feeding operations, and for independence of the inspection/appraisal process from the loan production function; and removes a sample form. The rule will incorporate and update provisions of existing 45 NAC 19 of the same title.
  15. 45 NAC 15 – Repeal the title of 45 NAC 15, “Executive Officer’s License,” as the rule itself was repealed in 1987.  Reissue the proposed rule, “Loans Secured by Warehouse Receipts,” to adopt standards for banks to qualify for the statutory exception to the lending limit for loans secured by warehouse receipts and define a term.  The rule will incorporate and update provisions of existing 45 NAC 20 of the same title.
  16. 45 NAC 16 – Repeal and Reissue 45 NAC 16 under the new title, “Loans Secured By Deposit Accounts.”  The proposed rule sets standards for banks to qualify for the statutory exception to the lending limit for loans secured by deposit accounts; defines a term; and updates methods for calculation of the lending limit.  The rule will incorporate and update provisions of existing 45 NAC 31 of the same title.
  17. 45 NAC 17 – Repeal and Reissue 45 NAC 17 under the new title, “Pool Participation Approval.”  The proposed rule sets standards for bank investments in obligations representing loans to other banks; provides an option for electronic filing of a required form with the Department; and clarifies the regulatory approval process.  The proposed rule will incorporate and update provisions of existing 45 NAC 18 of the same title.
  18. 45 NAC 18 – Repeal and Reissue 45 NAC 18 under the new title, “Requirements for Purchases of Shares of Investment Companies.”  The proposed rule sets the standards for bank investments in shares of investment companies; expands the list of obligations that are eligible for investment to include Canadian government obligations and digital asset depositories; adds a definition of “unimpaired capital;” and updates methods for calculation of investment limits.  The proposed rule will incorporate and update provisions of existing 45 NAC 30 of the same title.
  19. 45 NAC 19 – Repeal and Reissue 45 NAC 19 under the new title, “Leasing of Personal Property.”  The proposed rule establishes the standards for banks leasing personal property, and requires banks to comply with Title 12, Chapter 1, Part 23 of the Code of Federal Regulations, “Leasing.”  The proposed rule will incorporate and update some of the provisions of existing 45 NAC 26, “Banks: Leasing of Personal Property,” including the striking of provisions which are duplicative of federal regulations, and an addition of a statutory reference for investment limits.
  20. 45 NAC 20 – Outright repeal 45 NAC 20 as an updated version will be adopted as 45 NAC 15.
  21. 45 NAC 23 – Outright repeal 45 NAC 23 as an updated version will be adopted as 45 NAC 3.
  22. 45 NAC 24 – Outright repeal 45 NAC 24 as an updated version will be adopted as 45 NAC 12.
  23. 45 NAC 25 – Outright repeal 45 NAC 25 as an updated version will be adopted as 45 NAC 13.
  24. 45 NAC 26 – Outright repeal 45 NAC 26 as an updated version will be adopted as 45 NAC 19.
  25. 45 NAC 27 – Outright repeal 45 NAC 27 as an updated version will be adopted as 45 NAC 4.
  26. 45 NAC 28 – Outright repeal 45 NAC 28 as an updated version will be adopted as 45 NAC 9.
  27. 45 NAC 30 – Outright repeal 45 NAC 30 as an updated version will be adopted as 45 NAC 18.
  28. 45 NAC 31 – Outright repeal 45 NAC 31 as an updated version will be adopted as 45 NAC 16.
  29. 45 NAC 32 – Outright repeal 45 NAC 32 as an updated version will be adopted as 45 NAC 5.

The rulemaking hearing is being conducted under and by virtue of the provisions of Section 84-907, R.R.S 1943, as amended, which provides that COPIES OF THE PROPOSED RULES ARE AVAILABLE FOR PUBLIC EXAMINATION at the Office of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508, and at the Office of the Secretary of State, 1445 K Street, Suite 2300, Lincoln, Nebraska 68508.  In addition, the proposed rules are available on the Department of Banking and Finance’s website at https://ndbf.nebraska.gov, and the Secretary of State’s website www.sos.ne.gov.

A copy of the Fiscal Impact Statement is available at the Office of the Department of Banking and Finance and on the Department’s website.

All interested persons are invited to attend and testify at the hearing.  Interested persons may also submit written comments to the Department of Banking and Finance prior to the start of the hearing.  Such comments will be made part of the hearing record at the time of the hearing.  Written comments should be sent to the Nebraska Department of Banking and Finance, Attn: Tag Herbek, 1526 K St., Suite 300, Lincoln, NE 68508, or emailed to dob.banking@nebraska.gov.

If auxiliary aids or reasonable accommodations are needed for attendance at this hearing, please call the Nebraska Department of Banking and Finance at (402) 471-2171, or, for persons with hearing impairments, please call the Nebraska Relay System at (800) 833-7352 TDD.  This contact should be made at least seven (7) days prior to the hearing.

Dated at Lincoln, Nebraska, this 23rd day of December, 2022.

Kelly Lammers, Director

Nebraska Department of Banking and Finance

 

Proposed 45 NAC 1 General Provisions for Title 45

Proposed 45 NAC 1 Redlined General Provisions for Title 45

Proposed 45 NAC 2 Record Keeping Requirements For Business Entity Customers

Proposed 45 NAC 2 Redlined Record Keeping Requirements For Business Entity Customers

Proposed 45 NAC 3 Data Center Record Keeping Standards

Proposed 45 NAC 3 Redlined Data Center Record Keeping Standards

Proposed 45 NAC 4 Schedule For Records Retention By Banks

Proposed 45 NAC 4 Redlined Schedule For Records Retention By Banks

APPENDIX 45 NAC 4

Appendix 45 NAC 4 - 12 CFR Part 344 (up to date as of 10-24-2022)

 Appendix 45 NAC 4 - 12 CFR Part 12 (up to date as of 10-24-2022)

Appendix 45 NAC 4 - 12 CFR 208.34 (up to date as of 10-24-2022)

Proposed 45 NAC 5 Schedule For Retention Of Records Banks Exercising Trust Powers And Trust Companies

Proposed 45 NAC 5 Redlined Schedule For Retention Of Records- Banks Exercising Trust Powers And Trust Companies

Proposed 45 NAC 6 Articles Of Incorporation And Bylaws

Proposed 45 NAC 6 Redlined Articles Of Incorporation And Bylaws

Proposed Amended 45 NAC 7 Electronic Data Processing Rider Or Endorsement

Proposed Amended 45 NAC 7 Redlined Electronic Data Processing Rider Or Endorsement

Proposed 45 NAC 8 Changes In Paid-In Capital Stock

Proposed 45 NAC 8 Redlined Changes In Paid-In Capital Stock

Proposed 45 NAC 9 Active Executive Officers

Proposed 45 NAC 9 Redlined Active Executive Officers

Proposed 45 NAC 10 Insider Loan Guarantees

Proposed 45 NAC 10 Redlined Insider Loan Guarantees

Proposed 45 NAC 11 Executive Officer Borrowing Reports

Proposed 45 NAC 11 Redlined Executive Officer Borrowing Reports

Proposed 45 NAC 12 Directors' Examinations Performed By Certified Public Accountants Or Public Accountants

Proposed 45 NAC 12 Redlined Directors' Examinations Performed By Certified Public Accountants Or Public Accountants

APPENDIX 45 NAC 12

Proposed 45 NAC 13 Standards For Acceptability And Scope Of Examinations For Directors' Examinations

Proposed 45 NAC 13 Redlined Standards For Acceptability And Scope Of Examinations For Directors' Examinations

Proposed 45 NAC 14 Livestock Loans

Proposed 45 NAC 14 Redlined Livestock Loans

Proposed 45 NAC 15 Loans Secured By Warehouse Receipts

Proposed 45 NAC 15 Redlined Loans Secured By Warehouse Receipts

Proposed 45 NAC 16 Loans Secured By Deposit Accounts.pdf

Proposed 45 NAC 16 Redlined Loans Secured By Deposit Accounts.pdf

Proposed 45 NAC 17 Pool Participation Approval

Proposed 45 NAC 17 Redlined Pool Participation Approval

Proposed 45 NAC 18 Requirements For Purchases Of Shares Of Investment Companies

Proposed 45 NAC 18 Redlined Requirements For Purchases Of Shares Of Investment Companies

APPENDIX 45 NAC 18

Appendix 45 NAC 18_12 CFR Part 23

Appendix 45 NAC 18_15 USC CHAPTER 41_SUBCHAPTER I_Part E_ Consumer Leasing Act

Proposed 45 NAC 19 Leasing of Personal Property

Proposed 45 NAC 19 Redlined Leasing of Personal Property

Proposed 45 NAC 20 REPEAL

Proposed 45 NAC 23 REPEAL

Proposed 45 NAC 24 REPEAL

Proposed 45 NAC 25 REPEAL

Proposed 45 NAC 26 REPEAL

Proposed 45 NAC 27 REPEAL

Proposed 45 NAC 28 REPEAL

Proposed 45 NAC 30 REPEAL

Proposed 45 NAC 31 REPEAL

Proposed 45 NAC 32 REPEAL

Fiscal Impact Statement 45 NAC

Publication Notice 45 NAC

NDBF Cautions Investors on the Rise of the “Finfluencers”

Publication Date: Nov 8, 2022

NDBF Cautions Investors on the Rise of the “Finfluencers”

November 8, 2022 (LINCOLN, NE)— The Nebraska Department of Banking and Finance (“NDBF”) is joining the North American Securities Administrators Association (“NASAA”) in releasing an Informed Investor Advisory that recommends investors use caution when considering advice from social media financial influencers, or “finfluencers.”

A finfluencer is a person who, by virtue of their popular or cultural status, has the capability to influence the financial decision-making process of others through promotions or recommendations on social media, according to the Informed Investor Advisory. They may seek to influence potential investors by publishing posts or videos to their social media accounts, often stylized to be entertaining so that the post or video will be shared with other potential investors.

“More and more people are turning to social media to get investment advice.  Nebraska investors would be wise to consider the source of any unsolicited financial advice and treat any decision with careful consideration before making an investment,” said NDBF Deputy Director Claire McHenry.  “Investors should keep in mind that influencers are not subject to the same regulations as licensed financial professionals and may have undisclosed conflicts of interest.”

The advisory includes information to help investors better understand how influencers operate, what to consider when coming across financial advice on social media, and where to go for help with concerns about a possible finfluencer. The advisory also points out red flags to consider including dubious advice, unverifiable or outdated financial credentials, or investment recommendations not backed up by accurate data.

NDBF encourages Nebraskans to review financial opportunities on social media carefully and to check the registration status of the investment and the person offering it by visiting ndbf.nebraska.gov.  “Be wary of content on social media promising big or guaranteed returns with little or no risk.  If it sounds too good to be true, it probably is,” said Deputy Director McHenry.

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Informed Investor Advisory Finfluencer

11.08.22 Finfluencer.pdf

 

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF 12/31/22 RENEWAL DEADLINE

Publication Date: Nov 1, 2022

November 1, 2022 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance ("NDBF") reminds state-registered investment advisers, broker-dealers, and their agents and representatives that registrations in Nebraska expire on December 31, 2022. Firms will need to assemble required documentation and review filings to insure all information is accurate and up-to-date. Failure to submit supplements or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2023.

NDBF will again be utilizing ShareFile for firms to submit all supplements and correspondence. NDBF will send out a secure ShareFile link, unique to each firm, with the initial Notification dated November 1, 2022.  If you do not receive the notification, please email NDBF at DOB.SecuritiesBureau@Nebraska.gov to request a link.

FINRA Broker-Dealers and Agents please adhere to FINRA’s 2023 Annual Renewal Program and Timeline.

State-registered Investment Adviser and Investment Adviser Representative deadlines:

• By December 16, 2022 – Submit Nebraska specific forms and documentation to NDBF

• Before December 22, 2022 – Submit renewal payments through CRD/IARD

Non-FINRA Broker-Dealers and Agents must submit all required forms and documentation to NDBF by December 16, 2022, via ShareFile link. The Department encourages firms to remit fees electronically via ACH if possible.

 

Investment Adviser and Broker-Dealer December 31, 2022 Renewal Deadline

Publication Date: Nov 1, 2022

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2022 RENEWAL DEADLINE

November 1, 2022 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance ("NDBF") reminds state-registered investment advisers, broker-dealers, and their agents and representatives that registrations in Nebraska expire on December 31, 2022. Firms will need to assemble required documentation and review filings to insure all information is accurate and up-to-date. Failure to submit supplements or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2023.

The Department will again be utilizing ShareFile for firms to submit all supplements and correspondence. The Department will send out a secure ShareFile link, unique to each firm, with the initial Notification dated November 1, 2022.  If for some reason you do not receive the notification, please email the department at DOB.SecuritiesBureau@Nebraska.gov to request a link.

FINRA Broker-Dealers and Agents please adhere FINRA’s 2023 Annual Renewal Program and Timeline.

State-registered investment adviser and investment adviser representative deadlines:

• By December 16, 2022 – Submit Nebraska specific forms and documentation to NDBF

• Before December 22, 2022 – Submit renewal payments through CRD/IARD

Non-FINRA Broker-Dealers and Agents must submit all required forms and documentation to NDBF by December 16, 2022, via ShareFile link. The Department encourages firms to remit fees electronically via ACH if possible.