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

State Recoups Overcharges for Investors in Commodity Firm Bankruptcy

State Recoups Overcharges from Lear Capital

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

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.

 

• Listing of FDIC Insured Banks:   BankFind Suite: Find Institutions by Name & Location (fdic.gov)

​

• Listing of FDIC Account Ownership Categories:  Account Ownership Categories (fdic.gov)

 

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.

 

• Listing of NCUA Insured Credit Unions:  Credit Union Locator & Research a Credit Union | NCUA

 

• ​NCUA: How Your Accounts are Federally Insured Brochure (ncua.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.

• Government impersonator fraud: FDIC: FDIC Consumer News Scammers Pretending to be the FDIC
• Mail Fraud:  https://www.uspis.gov/tips-prevention/financial-fraud
• The NDBF investigates complaints against financial entities, which are regulated by the Department under the laws of the State of Nebraska. To file a complaint with the NDBF, visit https://ndbf.nebraska.gov/consumers/complaints.

 

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

 

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 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.

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 December 7, 2022, commencing at 9:30 a.m. CST, at the First Nebraska Administrative Building, 1526 K Street, Lower Level-Development Center, Lincoln, Nebraska 68508.

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

1. 47 NAC 1 – Adopts requirements for applicants of digital asset depository charters. Upon determination an application is substantially complete, the Director shall provide notice and schedule a public hearing in accordance with the Nebraska Financial Innovation Act and Administrative Procedure Act. Requires prior approval before a digital asset depository may conduct business in foreign markets or expand activities beyond what is disclosed in initial application. Provides guidance on filing fees, computation of time, and additional review of applications.
2. 47 NAC 2 – Sets surety bond and insurance requirements of digital asset depositories in case of potential liquidation, conservatorship, or receivership and to protect applicants by ensuring sufficient coverage to protect safety and soundness of business operations against insurable risk.
3. 47 NAC 3 – Harmonizes capital requirements for digital asset depository departments and digital asset depository institutions. Identifies examples of operating expenses to meet the three-year operating expense requirements provided for in the Nebraska Financial Innovation Act.
4. 47 NAC 4 – Allows state banks to amend existing financial institution charter with application to the Department of Banking and Finance to operate a digital asset depository department. Mandates separation of operations between digital asset depository department and other bank operations. A bank’s capital structure will be evaluated using a risk-based analysis of the proposed digital asset depository department. Separation of FDIC-insured activities and non-insured digital asset activities and products to prevent customer confusion.
5. 47 NAC 5 – Provides standards and penalties for required reporting to the Department of Banking and Finance. Provides for digital signatures under Nebraska law. Defines a call report. Requires digital asset depositories to comply with federal reporting and notice requirements. Provides for computation of time to fulfill report timing requirements.
6. 47 NAC 6 – Sets requirements for digital asset depositories to have a documented system for addressing customer complaints. Provides for administrative proceedings in the case of failure to acknowledge and respond to complaints.
7. 47 NAC 7 – Provides that digital asset depositories must provide notice that digital asset products are not FDIC-insured and that it can provide notice that traditional banking products are FDIC-insured.
8. 47 NAC 8 – Establishes that digital asset depositories must have a written response program with detailed methods for handling data breaches or other cybersecurity events. Requires immediate notification to the Department of Banking and Finance of such incident at the time of awareness of occurrence and reviews of the Financial Data Protection and Consumer Notification of Data Security Breach Act of 2006 to determine further necessary notifications. Requires reporting to the Department of Banking and Finance where incident occurrence is reported federally.

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. Seating is limited. Anyone interested in viewing the hearing via a Webex online teleconference link must contact the Department at dob.digitalassets@nebraska.gov by 4:00 p.m. CST, November 30, 2022 and provide your name and email address. Teleconference seats are limited.

Interested persons may submit written comments to the Department of Banking and Finance prior to the hearing. Submitted comments will be made part of the hearing record at the time of the hearing. Comments can only be made in person at the hearing room, or through previously written testimony. Comments will not be taken through the Webex teleconference. Written testimony 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.digitalassets@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 28th day of October, 2022.

Kelly Lammers, Director

Nebraska Department of Banking and Finance

 

Proposed 47 NAC 1 Applications

Proposed 47 NAC 2 Surety Bonds And Pledge Of Assets; Insurance

Proposed 47 NAC 3 Capital Requirements; Paid-Up Operating Expenses

Proposed 47 NAC 4 Digital Asset Depository Department; Charter Amendment; Director; Powers And Duties

Proposed 47 NAC 5 Reports; Call Reports

Proposed 47 NAC 6 Complaints

Proposed 47 NAC 7 Notice And Statement Regarding Deposit Insurance And Risk

Proposed 47 NAC 8 Response Program For A Cybersecurity Event Or Data Breach

Fiscal Impact Statement 47 NAC

Title 47 NDBF Publication Notice

CONTACT Claire McHenry, Deputy Director – Securities Bureau 

PHONE 402-471-2171

EMAIL claire.mchenry@nebraska.gov 

 

NDBF Recognizes June 15 as World Elder Abuse Awareness Day, Urges Nebraskans to Establish a Trusted Contact

June 15, 2022 (LINCOLN, NE)— In recognition of World Elder Abuse Awareness Day (WEAAD) on June 15th, the Nebraska Department of Banking and Finance (NDBF) reminds Nebraskans and financial professionals to be on the lookout for signs of elder financial abuse. To help protect Nebraska investors, NDBF has joined the North American Securities Administrators Association (NASAA) campaign urging Nebraskans to provide their financial firms with a trusted contact.

“Investors can take steps to help safeguard their investments from potential fraud by creating an extra layer of protection with a trusted contact,” said NDBF Deputy Director Claire McHenry. “Your investment professional can help you in getting a trusted contact in place for your accounts.”

A trusted contact is an individual authorized by an investor to be contacted by their financial firm in limited circumstances. These circumstances can include concerns about activity in the investor’s account or if the firm has been unable to reach the investor after numerous attempts. A trusted contact may be a family member, attorney, accountant or another reliable third party; investors may establish more than one trusted contact and may add or change a trusted contact at any time.

Importantly, a trusted contact:

• Cannot make trades in the investor’s account.
• Cannot make decisions about the investor’s account; and
• Does not become a power of attorney, legal guardian, trustee or executor by virtue of being identified as a trusted contact.

To learn more about setting up a trusted contact, financial firms and investors are encouraged to review materials available at www.nasaa.org/trust-contact.

Before making any financial decisions, ask questions, do your homework, and visit our website at ndbf.nebraska.gov or contact NDBF at 402-471-2171 for more information.

WEAAD - Trusted Contact.pdf

 

 

FOR IMMEDIATE RELEASE

CONTACT Kelly Lammers, Director

Phone 402-471-2171

Email kelly.lammers@nebraska.gov  

Governor Ricketts Proclaims April as Financial Awareness Month, State Capitol to turn Green

March 24, 2022 (LINCOLN, NE) – Today Gov. Pete Ricketts proclaimed the month of April as Financial Awareness Month in Nebraska.  The proclamation recognizes the importance of financial awareness to Nebraskans and that Nebraska is a leader in financial innovation, financial literacy education, and consumer and vulnerable adult protection.  Additionally, the Nebraska Capitol will be lit up in green for Financial Awareness Month on April 1-3.

The month-long financial awareness campaign is an initiative from the Nebraska Council of Economic Education (NCEE) and the Nebraska Department of Banking and Finance (NDBF).  Nebraska banks, credit unions, securities professionals, state agencies, consumer groups, and private sector organizations are conducting a variety of educational activities in schools, workplaces, and communities to educate Nebraskans about the importance of setting goals, making wise financial decisions, and protecting yourself and your financial future.

“Whether you are just starting out, or have been saving and investing for some time, April is a great opportunity to review your financial health and awareness.  Consider working with a bank, credit union, or registered securities professional to help protect and grow your finances,” said NDBF Director Kelly Lammers.  “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.”

“We at NCEE primarily focus on K-12 financial education.  If we can reach kids early and install good financial habits, we have changed their financial futures.  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,” said NCEE president, Dr. Jennifer Davidson.

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:

• The Nebraska Council on Economic Education is the premiere organization providing economic and financial education and resources to Nebraska. NCEE programming and resources can be found at http://nebraskacouncil.unl.edu and http://nceefinance.org.
• NDBF has information and four new My MoNEy videos on financial education topics at https://ndbf.nebraska.gov/consumers/consumer-resources.
• The Office of the Nebraska Attorney General has information on how to protect yourself from identity theft and scams at https://ProtectTheGoodLife.Nebraska.gov.
• The Nebraska State Treasurer’s Office, in partnership with NCEE, has a new a new, robust and personalized financial education learning center, Enrich. https://nast.enrich.org/landing/nast-start-nebraska
• The Nebraska Bankers Association and its 162 member banks are pleased to support Nebraska Financial Awareness Month. Nebraska banks are committed to improving financial literacy in the communities they serve. They sponsor programs and offer tools to help Nebraskans of all ages improve their financial decision-making and reach their financial goals. Individuals and families who have a solid financial education foundation are more likely to purchase a home, save for college and invest which, in turn, helps Nebraska communities thrive.  Nebraska banks are also watching out for their customers. They pushed for the passage of legislation that allows them to place a hold on a transaction if they suspect a vulnerable customer is a victim of financial exploitation.
• For the Nebraska Credit Union League, promoting financial well-being for all is a critical component in the fulfilment of the credit union mission of People Helping People. Financially healthy credit union members lead to healthy credit unions and healthy communities. Financial well-being isn’t “a thing” credit unions do. It is “the thing.”
• FPA of Nebraska is a professional organization for Certified Financial Planners™ and supports various financial literacy programs through Junior Achievement and other initiatives.
• Nebraska Independent Community Bankers encourages Nebraskans to talk about financial needs and solutions with the local Community Bank in April and thereafter whenever questions arise. AARP encourages Nebraskans to visit the AARP Fraud Watch Network at www.aarp.org/fraudwatchnetwork or call the AARP Fraud Watch Network Helpline at 1-877-908-3360 to report a scam or get help if you’ve fallen victim.
• Future Business Leaders of America (FBLA-PBL) is a national career and technical student organization for students in middle school, high school, and college who are interested in business administration, business education, management, finance, and information technology careers. Over 5800 students in more than 150 secondary schools and 13 postsecondary schools in Nebraska participate in the FBLA-PBL organization. FBLA offers over 15 competitive events in the finance career field to include financial literacy. Benefits of FBLA membership are leadership development, career preparation, community service, networking with business and community leaders, and challenging competitions.

 

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NDBF Financial Awareness Month 2022 Press Release.pdf

NDBF and the Office of the Nebraska Attorney General Partner with CFTC and 26 State Securities Regulators to Stop $68 Million Precious Metals Scheme that Targeted the Elderly

Feb. 2, 2022 (LINCOLN, NE) – The Nebraska Department of Banking and Finance (NDBF) and the Office of the Nebraska Attorney General announced today that they are participating in a consolidated enforcement action to stop a fraudulent precious metals scheme that solicited over $68 million from at least 450 investors nationwide, including $658,000 from investors in Nebraska.

NDBF and the Office of the Nebraska Attorney General have joined the Commodity Futures Trading Commission (CFTC) and 26 state securities regulators in filing a complaint in the United States District Court for the Central District of California alleging Safeguard Metals LLC and Jeffrey Santulan, a/k/a Jeffrey Hill, solicited investors nationwide by touting precious metals at grossly inflated prices that were not disclosed.

“This is one of many large-scale precious metals investment schemes we’ve endeavored to stop since the pandemic began and we are investigating numerous more precious metals investment companies on similar allegations. To prevent any further damages, investors are advised to be particularly cautious when purchasing precious metals and to check for excessive commissions, spreads or markups as high as 30 to 70 percent,” said NDBF Deputy Director Claire McHenry. “As the market continues to fluctuate, we anticipate seeing more fraudsters capitalize on investors’ uncertainty and use fear to manipulate good people out of their hard-earned money.”

The investors in this case were advised to liquidate their holdings at registered investment firms to fund investments in precious metals, bullion, and bullion coins through self-directed individual retirement accounts. Self-directed IRAs should not be confused with traditional IRAs or other retirement vehicles.

“In expectation of additional precious metals investment schemes, investors are advised to check the registration of all investment products and professionals, carefully research investments, ask tough questions about the fees, markups or spreads, risks, and potential returns,” said NDBF Deputy Director McHenry. “If the answers seem too good to be true or don’t make sense, protect your wallet by just walking away.” 

The defendants are accused of failing to disclose the markup charge for their precious metals bullion products and that investors could lose the majority of their funds once a transaction was completed. In many cases, the market value of the precious metals sold to investors was substantially lower than the value of the securities and other retirement savings investors had liquidated to fund their purchase. 

NDBF and the Office of the Nebraska Attorney General encourage investors to contact NDBF if they suspect they have been targeted by similar precious metals investment schemes. Please contact NDBF at 402-471-2171.

 

 

Safeguard Metals Consumer Advisory 2.2.2022.pdf

Safeguard Metals - CFTC Complaint.pdf

Safeguard Metals - SEC Complaint.pdf

 

NDBF REMINDS INVESTMENT ADVISERS, BROKER-DEALERS OF DECEMBER 31, 2021 RENEWAL DEADLINE

November 1, 2021 (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, 2021. Firms will need to assemble required documentation and review filings to make sure information is accurate and up-to-date. Failure to submit filings or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2022.

 

State-registered investment adviser and investment adviser representative deadlines:

• By December 17, 2021 – Submit Nebraska specific forms and documentation to NDBF

• Before December 13, 2021 – Submit renewal payments through CRD/IARD

• Before December 26, 2021 – Submit required electronic form filings through CRD/IARD

 

FINRA broker-dealer and agent deadlines:

• Before December 26, 2021 – Submit renewal payments through CRD/IARD

• Before December 26, 2021 – Submit required electronic form filings through CRD/IARD

 

Non-FINRA Broker-Dealers and agents must submit all required forms and documentation to NDBF by December 17, 2021

 

2022 Annual Renewal Program Letter-1.pdf

2022 IA Renewal Notice and Checklist fillable.pdf

2022 Non FINRA Renewal Notice and Checklist fillable.pdf

Contact: Claire McHenry, Deputy Director – Securities Bureau

Phone: 402-471-2171

Email: claire.mchenry@nebraska.gov

 

NDBF NOW ACCEPTING ONLINE FILING FOR FRANCHISES, BUSINESS OPPORTUNITIES

September 20, 2021 (LINCOLN, NE) - The Nebraska Department of Banking and Finance (NDBF) announced today that NDBF has joined with the North American Securities Administrator’s Association’s (NASAA) Electronic Filing Depository (EFD) System to accommodate the electronic filing of franchises and business opportunities under Nebraska’s Seller-Assisted Marketing Plan (SAMP) Act. 

The new functionality, referred to as the “Franchise Electronic Depository (FRED),” allows franchise filers to submit electronic filings and fees to NDBF for franchise filings on the EFD System. Additionally, NDBF is expanding the “Universal Filing Type (UFT)” filing functionality to allow business opportunity filers to submit electronic filings to NDBF on the EFD System.  

Developed by NASAA, of which NDBF is a member, the EFD System was launched in 2014 and was initially used to facilitate the filing of Form D for Regulation D, Rule 506 offerings with state securities regulators and to pay related fees. The system was expanded in 2019 to accommodate Form NF-UIT notice filings for unit investment trusts (UITs) and further expanded in 2020 to allow a variety of corporation finance offerings including, among others, registrations by coordination and qualification, Regulation A (Tier 1 and Tier 2), and crowdfunding (federal and state) filings with NDBF. 

The EFD website also enables the public to search and view, free of charge, Reg. D Rule 506, Form NF-UIT, and franchise filings made through EFD. EFD is available at: https://www.efdnasaa.org.

NDBF’s expansion of online filing for franchises and business opportunities helps grow Nebraska and advances the state’s mission of creating opportunities through more effective, more efficient, and consumer-focused state government.

If you have questions about a particular offering in a franchise or business opportunity, or about EFD, contact NDBF at DOB.SecuritiesFiling@nebraska.gov or 402-471-2171.

 

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FRED Publication Final.pdf

Governor Pete Ricketts is holding an Ag & Economic Development Summit in Kearney, Nebraska on August 3rd at 4:00 PM and August 4th at 2:30 PM. If you would like to attend, tickets will need to be purchashed. Please click the links below for more information. 

 

Facebook Link:

https://fb.me/e/6q4ONObGP

Twitter Link:

https://twitter.com/GovRicketts/status/1417604201866305537?s=20

To purchase Tickets: 

https://www.eventbrite.com/e/2021-governors-ag-economic-development-summit-registration-159180746899

 

Location of Summit:

Younes Conference Center

416 W Talmadge Rd,

Kearney, NE 68845

Contact: Christopher German, Senior Staff Attorney 

Phone: 402-471-2171 

Email: christopher.german@nebraska.gov 

Installment Sales Act and Installment Loan Act Updates

April 19, 2021 (LINCOLN, NE) - The Nebraska Department of Banking and Finance

(“NDBF”) is providing the following notice regarding consumer lenders.  Effective      

March 18, 2021, Legislative Bill 363 (2021) (“LB 363”) amended sections of the Nebraska Installment Sales Act and the Nebraska Installment Loan Act (collectively referred to as “the Acts”). 

Nebraska Installment Sales Act

Section 45-335(11) of the Nebraska Installment Sales Act was amended to define a sales finance company as “a person purchasing one or more installment contracts from one or more sellers or acquiring any rights of ownership, servicing, or other forms of participation in or otherwise engaging with a consumer on behalf of the purchaser of one or more installment sales contracts from one or more sellers.”  (emphasis added)

Additionally, Section 45-346 of the Nebraska Installment Sales Act was amended to reflect the established practice of NDBF to require an additional bond amount of $50,000 for each licensed branch location, including branches not physically located in Nebraska, of an applicant or licensee under the Nebraska Installment Sales Act. 

Nebraska Installment Loan Act

Prior to the passage of LB 363, a license was required to engage or continue in the business of making loans of money and charge, contract for, and receive the maximum for interest and other charges allowed under the Nebraska Installment Loan Act.  Now, sections 45-1004 and 45-1005 of the Nebraska Installment Loan Act have been amended to require a license for non-chartered entities holding, servicing, or otherwise participating in consumer loans made to Nebraska residents with an interest rate greater than 16% per annum, a principal balance of less than $25,000, and a duration of 145 months or less.

The Nebraska Installment Loan Act still requires lenders who are making installment loans to have a physical presence in Nebraska, but the physical presence requirement does not apply to owners, servicers, or purchasers of installment loans if they are not making such loans.

Conclusion

With the change in the Acts, consumer lenders should consult with legal counsel to determine if licensure is necessary under Nebraska law.  As stated above, LB 363 is already effective; therefore, NDBF would expect those now subject to the licensing requirements to file an application for a license on the Nationwide Mortgage Licensing System (“NMLS”) by October 1, 2021. 

A properly licensed debt collection agency is not required to be licensed under the Acts due to the changes contained in LB 363, for conducting activities that are covered by such debt collection agency licensure.  However, licensure under the Acts may be required where such an agency conducts business beyond the scope of such debt collection agency license that includes licensable business activity under the Nebraska Installment Sales Act or the Nebraska Installment Loan Act.

Failure to obtain a license as required under the Acts, may result in administrative actions being taken by NDBF, including the imposition of fines, penalties, and other forms of liability, as set forth in Sections 45-343 and 45-353 of the Nebraska Installment Sales Act and Sections 45-1015, 45-1033, and 45-1069 of the Nebraska Installment Loan Act.

Additional licensing information for consumer lenders is available on NDBF’s website at https://ndbf.nebraska.gov/industries/consumer-lending-licenses and on the NMLS website at https://mortgage.nationwidelicensingsystem.org/Pages/default.aspx. If you have questions, please call NDBF at 402-471-2171.

####

Industry Update - Installment Sales Act and Installment Loan Act Updates

FOR IMMEDIATE RELEASE

CONTACT Mike Cameron, Securities Bureau Counsel

Phone 402-471-2171

Email mike.cameron@nebraska.gov

 

Metals.com, Tower Equity, Chase Metals, and Barrick Capital Receivership Claim Deadline of April 30, 2021

March 15, 2021 (LINCOLN, NE) – The Nebraska Department of Banking and Finance (NDBF) and the Office of the Nebraska Attorney General, other state regulators and the Commodity Futures Trading Commission recently filed a joint civil enforcement action against Metals.com, Tower Equity, Chase Metals, Barrick Capital and other associated parties.  The complaint alleges that the defendants perpetrated a fraudulent precious metals investment scheme that involved at least 1,600 investors and more than $185 million in customer funds, including $600,000 from Nebraska investors. 

The United States District Court for the Northern District of Texas entered an injunction and a restraining order freezing the assets of the defendants.  It also appointed Kelly Crawford as Receiver – an official responsible for marshalling assets of the defendants for the benefit of investors.  

The Receiver will begin administering the claims process and returning money to investors.  As part of the process, he will be sending correspondence, instructions, and a claims form.  Investors must complete and return their claims forms to the Receiver to participate in the claims process and request a return of money.  The deadline to return the claim form is April 30, 2021. 

“NDBF and the Office of the Nebraska Attorney General continue to fight to protect senior citizens and other victims,” said NDBF Deputy Director Claire McHenry.  “We are committed to holding bad actors accountable for their actions and pursuing relief for victims of illegal scams.  We are therefore encouraging investors to promptly begin working with the Receiver to request a return of funds.” 

Investors should direct questions about the claims process to the Receiver.  They can contact the Receiver at kelly.crawford@solidcounsel.com or 214-706-4213.  The Receiver also maintains a website that provides information about the claims process, and it is accessible at https://www.metalsandbarrickcapitalreceivership.com.

NDBF can also provide additional information and explanation relating to the allegations of fraud, the lawsuit, the receivership, and the claims process. Please contact NDBF at 402-471-2171.  

###

 

3.15.21 Consumer Advisory - Metals.com Receivership Claim Deadline.pdf

First 2021 my moNEy video meets commitment to assist in understanding financial services

The Department of Banking and Finance and Department of Insurance presents videos on a variety of financial topics through the my moNEy series.  The latest video provides information on Compound Interest.  Use Compound Interest to your advantage by avoiding the pitfalls and investing in your future.

Videoclip:

 https://youtu.be/JslZrnCOrpE

 

November 2, 2020 (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, 2020. Firms will need to assemble required documentation and review filings to make sure information is accurate and up-to-date. Failure to submit filings or provide required information by the appropriate deadline will result in the termination of the registration on January 1, 2021.

State-registered investment adviser and investment adviser representative deadlines:

• By December 18, 2020 – Submit Nebraska specific forms and documentation to NDBF

• Before December 26, 2020 – Submit renewal payments through CRD/IARD

• Before December 26, 2020 – Submit required electronic form filings through CRD/IARD

 

FINRA broker-dealer and agent deadlines:

• Before December 26, 2020 – Submit renewal payments through CRD/IARD

• Before December 26, 2020 – Submit required electronic form filings through CRD/IARD

Non-FINRA Broker-Dealers and agents must submit all required forms and documentation to NDBF by December 18, 2020

 

2021 IA Renewal Notice and Checklist

2021 Non FINRA Renewal Notice and Checklist

NDBF and the Office of the Nebraska Attorney General Join with CFTC to Charge Precious Metals Dealers in $185 Million Scheme Targeting Elderly Investors

Sept. 25, 2020 (LINCOLN, NE) – The Nebraska Department of Banking and Finance (NDBF) and the Office of the Nebraska Attorney General announced today that they are participating in a consolidated nationwide enforcement action to halt a fraudulent precious metals scheme that has solicited $185 million from at least 1,600 seniors and other investors, including $600,000 from investors in Nebraska.

NDBF and the Office of the Nebraska Attorney General announced today that they joined the Commodity Futures Trading Commission (CFTC) and 29 other states in filing a complaint in the U.S. District Court for the Northern District of Texas alleging Metals.com and Barrick Capital Inc. defendants solicited $185 million from seniors and other vulnerable investors nationwide by touting precious metals at grossly inflated prices that were not disclosed.

“The defendants had a reckless disregard for the truth by failing to disclose that virtually every investor lost the majority of their funds in the investments the firm was peddling,” NDBF Deputy Director Claire McHenry said. “They capitalized on investor fear of market instability and economic uncertainty.  Investors suffered substantial losses from retirement savings by relying on the false representations made by the defendants and their sales representatives.”

“This historic joint effort between the CFTC and 30 state regulators is an important step toward rooting out fraud across the country,” said CFTC Chairman Heath P. Tarbert. “This case highlights just how geographically broad commodities fraud can be in our rapidly-evolving financial markets and how important it is for regulators at all levels of government to work together to pursue bad actors and protect market participants.”

The complaint names Los Angeles, California-based companies TMTE Inc., also known as Metals.com, Chase Metals Inc., Chase Metals LLC, and Barrick Capital Inc., along with Simon Batashvili, Lucas Asher, and Tower Equity LLC. The defendants are accused of using cold calling, television, radio, and social media advertisements designed to “instill fear in elderly and retirement-aged investors and build trust with investors based on representations of political or religious affinity.” Investors were advised to liquidate their holdings at registered investment firms to fund investments in precious metals bullion through self-directed individual retirement accounts and bullion coins, the complaint said.

The defendants also are accused of failing to disclose, among other things, the markup Metals.com and Barrick charged investors for their precious metals bullion products and that investors could lose the majority of their funds immediately upon completing a transaction. The defendants charged investors prices for gold or silver bullion averaging from 100% to more than 300% the melt value or spot price of that gold or silver bullion. In many cases, the market value of the precious metals sold to investors was substantially lower than the value of the securities and other retirement savings investors had liquidated to fund their purchase.

The complaint requests the Court order the defendants to cease sales activity, return money to investors, and stop defrauding investors and violating federal and state laws going forward. The complaint also requests that a receiver be appointed to take over the companies to marshal funds for the benefit of investors across the country.

Metals.com and its agents have attempted to evade previous regulatory actions from 12 states by, among other tactics, changing its business name. Today’s coordinated state and federal action to put a stop to the company’s efforts to continue to prey on elderly investors is the result of a multi-state collaboration by members of the North American Securities Administrators Association (NASAA), of which NDBF is a member, and the Commodity Futures Trading Commission’s Office of Cooperative Enforcement.

NDBF encourages investors to come forward if they suspect they have been targeted by similar precious metals investment schemes. Please contact NDBF at 402-471-3445.

Consumer Advisory - Metals.com

Metals.com Complaint

Metals.com Ex Parte Order

Metals.com Notice of Service and Lifting of the Seal

Nebraska Department of Banking and Finance Now Accepting Additional Online Corporation Finance Filings

June 15, 2020 (LINCOLN, NE) –The Nebraska Department of Banking and Finance (NDBF) today announced that the North American Securities Administrators Association’s (NASAA) Electronic Filing Depository (EFD) System has been expanded to accommodate the electronic filing of a greater range of corporation finance materials with the agency.

“We are pleased to continue to modernize and streamline the filing process and offer additional efficiencies for issuers,” said NDBF Deputy Director Claire McHenry.

The new functionality, referred to as “Universal Filing Type,” allows filers to submit electronic filings to the NDBF for a variety of corporation finance offerings not previously available through EFD and to pay associated fees. These offerings include, among others, registrations by coordination and qualification, Regulation A (Tier 1 and Tier 2), crowdfunding (federal and state), and franchise filings. The expanded functionality also facilitates the filing of materials such as issuer-agent registrations.

Developed by NASAA, of which the NDBF is a member, the EFD System was launched in 2014 and was initially used to facilitate the filing of Form D for Regulation D, Rule 506 offerings with state securities regulators and to pay related fees. The system was expanded last year to accommodate Form NF-UIT notice filings for unit investment trusts (UITs) with the NDBF. Future system enhancements are being considered to accommodate the electronic filing of Form NF-Mutual Funds.

The EFD website also enables the public to search and view, free of charge, Reg. D Rule 506 and Form NF-UIT filings made through EFD. EFD is available at: https://www.efdnasaa.org.

“If you have questions about a particular offering, you should contact the NDBF,” Deputy Director McHenry said.

Issuers or investors with questions about EFD can contact the NDBF at DOB.SecuritiesFiling@nebraska.gov or 402-471-3445.

Expanded EFD Functionality

#####

COVID-19-Related Investment Schemes Anticipated

 

April 21, 2020 (LINCOLN, NEB.)  — Amid the ongoing COVID-19 pandemic, the Nebraska Department of Banking and Finance (NDBF) is alerting investors to be on guard against an anticipated surge of fraudulent investment schemes.

“In these extraordinary times, the health and welfare of all must be our foremost concern, and that includes our financial health. Our focus remains on the protection of Nebraska investors,” said NDBF Deputy Director Claire McHenry.

NDBF warns investors that the fraudulent schemes launched amid COVID-19 outbreak will not be elegant. “Scammers will create schemes that require little or no advance planning and little sophistication,” Deputy Director McHenry said. “Most will simply be old scams dressed in new clothes.”

The North American Securities Administrators Association, of which NDBF is a member, anticipates fraudulent investment schemes will rise as a result of the ongoing pandemic. “Scammers will be targeting investors, taking advantage of recent developments in the economy, and preying on concerns about the regulated securities market,” said Deputy Director McHenry. “Investors must remain cautious to protect themselves.”

In particular, NDBF warns investors to be on the lookout for investments specifically tied to the threat of COVID-19. Scammers can be expected to develop schemes that falsely claim to raise capital for companies manufacturing surgical masks and gowns, producing ventilators and other medical equipment, distributing small-molecule drugs and other preventative pharmaceuticals, or manufacturing vaccines and miracle cures. The schemes often appear legitimate because they draw upon current news, medical reports, and social and political developments. 

Scammers also will seek to take advantage of concerns with the volatility in the securities markets to promote “safe” investments with “guaranteed returns” including investments tied to gold, silver and other commodities; oil and gas; and real estate. Investors also can expect to see “get rich quick” schemes that promise quickly earned guaranteed returns that can be used to pay for rent, utilities or other expenses. These schemes also target retirees and senior citizens, falsely claiming they can quickly and safely recoup any losses to their retirement portfolios.

Investors must remain vigilant and protect themselves from new schemes tied to COVID-19 and recent economic developments. NDBF warns investors to stay clear of anything sounding too good to be true, such as guarantees of high returns with no risk, and to verify the licenses and registrations of investment professionals. 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - COVID-19 Investment Threats

Consumer Advisory - COVID-19 Related Schemes to Watch For

Consumer Advisory - How to Protect Yourself from COVID-19 Scams

 

Omaha Man Ordered to Stop Misleading Investors

 

April 2, 2020 (LINCOLN, NEB.)  — The Nebraska Department of Banking and Finance (NDBF) issued a Cease and Desist Order against an Omaha man, Amogh Karney (“Karney”), in connection to his 2019 offer and sale of investment interests in an entity known as ARK Capital, LLC (“ARK”). The Order includes Karney’s affiliates, control persons, officers, directors, agents, employees and successors.

 

According to the Order, Karney offered and sold securities in ARK.  Karney provided a potential investor with information that falsely stated that an Omaha business owner was an investor in ARK.

 

The Order prohibits Karney from making any untrue statements of material facts in connection with the offer and sale of securities.  The Order also prohibits Karney from omitting material facts in connection with the offer and sale of securities.

 

Individuals who purchased securities from Karney are asked to contact the Department.

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Amogh Karney

March 25, 2020

Statement from Nebraska Department of Banking and Finance regarding Examinations of Financial Institutions during the COVID-19 Emergency

For all Nebraska State chartered, licensed, and supervised depository and non-depository financial institutions:

• The Nebraska Department of Banking and Finance (Department) will temporarily cease all regular examination activity effective March 25, 2020, except where the examination work is critical to safety and soundness, consumer protection, or is required to address an urgent or immediate need.

• The Department will reassess its approach to examinations on April 24, 2020 or when the emergency has concluded, whichever is sooner.

• The Department’s action will allow financial institutions to prioritize working with their customers during the COVID-19 emergency.

• The institution may elect to move forward with a Department examination if it has previously provided a majority of the requested information; however, the determination to proceed will be left up to the institution.

• The Department’s action to temporarily cease examinations follows federal regulators such as the FDIC and Federal Reserve Bank.

• Additional time will be granted to resolve non-critical existing supervisory findings.

• Please contact Greg Freese at greg.freese@nebraska.gov with examination questions regarding banks, credit unions, or trust companies or Scott Peter at scott.peter@nebraska.gov for examination questions of mortgage companies, delayed deposit services, installment loan companies, and money transmitters.  Both can also be reached at the Department’s main phone number: 402-471-2171.

   

 

DDS LICENSE RENEWAL DEADLINE

News Release Date: March 04, 2020

NDBF REMINDS DDS LICENSEES OF May 1, 2020 RENEWAL DEADLINE

The Nebraska Department of Banking and Finance ("NDBF") reminds DDS licensees holding an active Delayed Deposit Services license in Nebraska that it will expire on May 1, 2020.

Nebraska Statutes require that each Delayed Deposit Services Business renew its license annually. Be advised that Section 45-926 of the Delayed Deposit Services Licensing Act prohibits the operation of a Delayed Deposit Services business without a license. Your current license will expire on May 1, 2020.

The 2020 Delayed Deposit Services Renewal Licensing Forms and Instructions are available on the Department web site at https://ndbf.nebraska.gov/industries/delayed-deposit-services-payday-len.... Licensees must use the licensing forms provided on the Department’s website. Forms from previous years will not be accepted.

To renew a DDS Business License, a licensee must submit the following:

1) Delayed Deposit Services Business License Renewal Application and Fee- MUST BE MAILED TO THE NEBRASKA DEPARTMENT OF BANKING AND FINANCE AND BE POSTMARKED NO LATER THAN APRIL 10, 2020.

 Companies holding licenses in more than one county, all principal places of business and branches may be submitted on one application.

 When you submit the license renewal application, you must include the appropriate renewal fees. The renewal fee is $500 for each principal place of business and $500 for each branch office.

2) Delayed Deposit Services Licensee Annual Report and Supplemental Annual Report for 2019- MUST BE ELECTRONICALLY SUBMITTED TO DOB.CONSUMERFINANCE@NEBRASKA.GOV NO LATER THAN APRIL 10, 2020.

 Annual Report and Supplemental Annual Report for 2019 must be submitted for each license #.

3) Delayed Deposit Services Licensee Annual Report- Affidavit

 Upon approval of the Annual Report and Supplemental Annual Report, the Department will email the Licensee’s Primary Contact the required Affidavit to be signed and notarized. The individual signing this form is

　

affirming that to the best of his or her knowledge the information contained in the Annual Report is true.

 The completed Affidavit MUST BE MAILED TO THE NEBRASKA DEPARTMENT OF BANKING AND FINANCE.

ONCE APPROVED, RENEWAL LICENSES AND CERTIFICATES OF BRANCH APPROVAL WILL BE MAILED TO THE PRINCIPAL PLACE OF BUSINESS.

You must still file an Annual Report and Supplemental Annual Report, even if you are not renewing your DDS license.

If you have questions, please email dob.consumerfinance@nebraska.gov and include your company name and license number in the subject line or call 402-471-2171.

Nebraska Department of Banking and Finance

January 24, 2020

Responses to Questions regarding RFP 2020-001

The Nebraska Department of Banking and Finance has issued a Request for Proposal for an Administrator of the Public Funds Security Act Single Bank Pooled Method described in Nebraska Revised Statutes Sections 77-2386 et seq.

The last day to submit questions regarding the RFP was 1/17/2020.  Below are the Department’s responses to all questions submitted by the deadline.

 

RFP can be found at this link:  https://ndbf.nebraska.gov/sites/ndbf.nebraska.gov/files/news-release/Banking%20and%20Finance%20RFP2020-001.pdf

 

 

“RFP Number 2020-001-Public Funds Security Act Single Bank Pooled Method Questions”

 

	Solicitation Section Reference	Solicitation Page Number	Question
#1.	Scope of Service	Cover Page	Does the Department anticipate appointing more than one Administrator?
	Response to #1		No. However, in the event of the need for a successor Administrator to be appointed, it may be possible that more than one Administrator could be named over the life of the appointment.
#2.	Glossary of Terms and Section V., B. 12	Page viii and page 20	Should the definition of “public depositor” reflect a reference to “agency” or “state agency” rather than “state entity” as proposed?
	Response to #2		No. The reference to “public depositors” is to political subdivisions of the State of Nebraska, such as School districts, townships.
#3.	Section I., Q.	Page 6	Does NDBF anticipate conducting oral Interviews / presentations?
	Response to #3		Yes.  NDBF will conduct oral interview / presentations if necessary to assist in the Administrator selection.
#4.	Section I., Q.	Page 6	If an applicant knows it will not be available for oral interview/presentations during the time frame identified in the RFP, can alternate arrangements be made for this purpose?
	Response to #4		Yes.
#5	Section I., R.	Page 6	Does NDBF anticipate asking for additional Best and Final Offers? If so, in light of the July 1, 2020, effective date of the law, is this potential factored into the timeline?
	Response to #5		Yes. If necessary, NDBF will request BAFOs.  Potential for BAFOs has been factored into the proposed timeline; however, NDBF reserves the right to adjust the timeline.
#6	Section II., B.	. Page 8	If notifications are intended to apply for issues beyond the appointment of the Administrator, should notification by electronic means be authorized?
	Response to #6		Yes.
#7	Section II., M.	Page 10	Since the Administrator is granted the same statutory immunity as the Director/Department of Banking, is a cashier's check or performance bond necessary?
	Response to #7		A legal conclusion as to the extent of immunity extended to the Administrator has yet to be determined. The Department is requiring a cashier’s check or performance bond of the Administrator. The Director will not consider any applicant administrator unwilling or unable to post such security.
#8	Section II., M,	Page 10	Does the Department intend to require the performance bond or cashier’s check to be provided by the designated Administrator?
	Response to #8		Yes.  The Performance bond or cashier’s check must be provided by the designated Administrator upon appointment.
#9	Section II., M.	Page 10	If a cashier’s check or performance bond in the amount of $100,000 is required to be provided by the designated Administrator, has the cost of the performance bond been factored into the fees that may be charged by the Administrator?
	Response to #9		No. A performance bond for services to be provided to or on behalf of the State of Nebraska is not extraordinary.
#10	Section II.,M.	Page 10	Can applicant satisfy the contract surety requirements through use of a bank-issued or FHLB-issued letter of credit?
	Response to #10		Yes, provided the letter of credit can be drawn upon demand by NDBF.
#11	Section II., Q.	Page 11	Should the RFP contain provisions addressing the circumstances under which the applicant may terminate its obligation to administer the program?
	Response to #11		The RFP and the response of the applicant Administrator must contain all operating understandings between NDBF and Administrator.  The applicant Administrator should set forth all circumstances under which the applicant would terminate its obligation to administer the program, or forfeit its appointment.
#12	Section III., B.	Page 13	Parent corporation of applicant currently provides payroll services for applicant. May the parent corporation satisfy the requirement to “use a federal immigration verification system to determine the work eligibility status of employees physically performing services within the appointment period?”
	Response to #12		Yes.
#13	Section III., E.	Page 14	Would NDBF consider allowing an exception to the restriction on fee increases during the first two years of the appointment or any renewal thereof based on “unanticipated circumstances?”
	Response to #13		Unknown.  NDBF will not speculate on future actions based on unknown circumstances.  Any fee increases would be subject to the prior approval of the Director.
#14	Section III., F.	Page 14	How does NDBF anticipate determining “deviation from “industry standards?”
	Response to #14		By comparison to standard practices of other administrators and entities involved with monitoring, reporting or supervising the pledging of securities to secure public deposits.
#15	Section III., H.	Page 14	Can the RFP be clarified to confirm that applicant shall retain ownership and title of any software or processes developed to automate the program reporting process and the right to patent, license, or copyright, duplicate, transfer, sell, the design, specifications, concept, or deliverable of such software or processes?
	Response to #15		The RFP and the response of the applicant Administrator must contain all operating understandings between NDBF and Administrator.  The applicant Administrator should set forth all ownership and title concerns pertaining to its administration of the program.
#16	Section III., I. 1.	Page 15	Can NDBF clarify who are “contractors’ employees?”
	Response to #16		Any person employed by the Administrator or Sub-Administrator or who provides services in furtherance of the appointment.
#17	Section III., I.	Page 16	Some of the required coverage limits exceed industry standards and are in excess of the limits currently in place under applicant’s insurance coverages and will result in significant cost increases for applicant. Will NDBF consider lower coverage limits for certain categories of required insurance coverage?
	Response to #17		The RFP and the response of the applicant Administrator must contain all operating understandings between NDBF and Administrator.  The applicant Administrator should set forth any proposed lower insurance coverage limits pertaining to its administration of the program.
#18	Section III., I.	Page 16	One of the required insurance coverages is “Independent Administrators” coverage. It does not appear that this term is utilized within the insurance industry as an acknowledged type of coverage. Would NDBF clarify the specific type of coverage that will satisfy this requirement?
	Response to #18		Independent Contractor.
#19	Section III., O.	Page 18	Can NDBF provide a timeframe within which the Administrator must comply with changed Nebraska Technology Access Standards in the event of an amendment to the appointment?
	Response to #19		NDBF will consider commercially reasonable time frames for technology compliance in the event of an amendment to the Nebraska Technology Access Standards.  Due to the potential of cyber security issues, a standard predetermined time is not practical and the Administrator will need to present compliance concerns to the Director on a case by case basis.
#20	Section III., R.	Page 18	Can NDBF clarify who or what constitutes the “Customer” of the administrator for purposes of the “Warranty” provisions?
	Response to #20		Customer includes all parties reliant upon the services of the Administrator.
#21	Section IV., C.	Page 19	With respect to activities of the State, State Auditor, or Department, will any audit conducted be limited to a review of applicant activity related duties as Administrator of the pooled collateral program or will other applicant-related activities and financial information be subject to audit?
	Response to #21		The Department is not in a position to limit, restrict or otherwise comment on any audit conducted by the Auditor of Public Accounts.
#22	Section V., F. (3) and Exhibit E – Transactions	Page 21 and 30	Can NDBF explain why provisions requiring the Administrator to pre-approve the acceptance, substitution or withdrawal of any Pledged Securities are included in the RFP? There does not appear to be any statutory authority for requiring prior approval by the Administrator. Section 77–2392 expressly provides that a bank, …shall have the right at any time and without prior approval to substitute or exchange other securities of equal value” subject to the requirement that the substituted or exchanged securities do not reduce the market value of the securities to less than 102% of the public funds required to be collateralized.
	Response to #22		The agreement between the Administrator and bank should provide for advance notice to the Administrator of any security substitutions. The provisions should enable communications preventing pledging gaps or mismatches which may result in non-compliance fees while maintaining required collateralization of public funds.  NDBF will consider responses which provide for prior or contemporaneous notice of substitution in lieu of prior approval. The RFP and the response of the applicant Administrator must contain all operating understandings between NDBF and Administrator.
#23	Section V., G.	Page 22	Will the Administrator, in “providing” reports to custodial officials within 20 days after receiving monthly reports from Covered Depositories, be able to satisfy the requirement by posting the required information on the Administrator’s website?
	Response to #23		If the governmental unit has agreed in advance to receive such reports by accessing the administrator’s website, provision of reports may be accomplished by electronic means.
#24	Section V., G.	Page 22	Should the reports referenced in Section V. G. (1)-(7) be made available only to program participants, rather than being made available to the public?
	Response to #24		The Department considers the reports referenced to be public records that should be made available to the public.
#25	Section V., G.	Page 22	As of what date is the information in the reports referenced in Section V. G. (1)-(7) to be obtained?
	Response to #25		The most recent available monthly report, as of the time of the request.
#26	Section V., H.	Page 22	Is the Administrator to retain any “non-compliance fees” received?
	Response to #26		Yes. So long as the fee reflects non-compliance with the guidance.  The Department retains the authority to assess fines and penalties in accordance with the Banking Act.
#27	Section V., H. and Exhibit E –  Noncompliance and Remedies	Page 22 and 31	Section V. H. authorizes recovery of non-compliance fee from Custodial Officials. The applicable list of program fees under Exhibit E only addresses non-compliance fees for Covered Depositories and Qualified Trustees and does not make any reference to Custodial Officials under the provisions regarding non-compliance and remedies. Should the RFP be revised to reflect the circumstances under which Custodial Officials may be subject to non-compliance fees?
	Response to #27		The RFP and the response of the applicant Administrator must contain all operating understandings between NDBF and Administrator.  The applicant Administrator should set forth any proposed circumstances under which Custodial Officials may be subject to non-compliance fees.
#28	Exhibit E – Month-end Bank Report of Deposits and Monthend Qualified Trustee Report	Page 29 and 30	The bank reporting requirement relating to “deposits” and the Qualified Trustee reporting requirement, contain categories of information relating to collateral at items r) and s), relating to face or par value and market value of securities pledged. Should these categories of information be deleted? If not, there would appear to be no statutory basis to require this information to be provided on a daily basis
	Response to #28		The listed reporting requirements are considered to be essential for the Department to evaluate the Administrator’s performance. The RFP and the response of the applicant Administrator must contain all operating understandings between NDBF and Administrator.  The applicant Administrator should set forth any proposed format and information to be contained on the report, the timeliness of said report and the justification for the same.
#29	Exhibit E – Month-end Bank Report of Deposits	Page 29	Does a requirement for covered depositories to report daily balances of deposits only apply if a deposit guarantee bond is utilized for pledging purposes? (See Section 77-2394)
	Response to #29		No. Administrator is to enable a process to confirm collateralization coverage, appropriately protecting public deposits.
#30	Exhibit E – Program Fees	Page 30	Will NDBF consider allowing a higher maximum application fee if application fees are tiered based on bank asset sizes?
	Response to #30		The RFP and the response of the applicant Administrator must contain all operating understandings between NDBF and Administrator.  The applicant Administrator should set forth any proposed higher maximum application fees based on bank asset size and the justification for the same.
#31	Exhibit E – Program Fees	Page 30	Will NDBF consider allowing an annual administration fee?
	Response to #31		The RFP and the response of the applicant Administrator must contain all operating understandings between NDBF and Administrator.  The applicant Administrator should set forth any proposed annual administration fee and the justification for the same.
#32	Section VI., B. 2.	Page 33	This section requires specifically named individuals who will be working on NDBF’s project to be identified and for resumes to be provided to NDBF for review. At this time, applicant is unsure as to whether it will appoint a current employee or employees to fill this administrative role or if it will hire new personnel for this purpose. May applicant simply designate individuals in leadership/supervisory roles who will ultimately be responsible for supervisions and for whom responsible individuals will ultimately report, to satisfy this requirement?
	Response to #32		Yes.
#33	General	N/A	If pending legislation (LB 854) is adopted, will the program requirements and forms be revised to reflect any such statutory changes?
	Response to #33		Yes.
#34	General	N/A	Will NDBF allow proposed forms and agreements (Exhibits B, C, D, and E) to be modified, based on anticipated input from participants (Covered Depositories, Custodial Officials and Qualified Trustees)?
	Response to #34		Yes. The RFP and the response of the applicant Administrator must contain all operating understandings between NDBF and Administrator.  The applicant Administrator should set forth any proposed forms and agreements and the justification for the same.

 

December 2, 2019 (LINCOLN, NEB.)  — The Nebraska Department of Banking and Finance (NDBF) announced today that ClearSky is conducting updates to its BlueExpress filing solution.  Filers using BlueExpress to file Form NF for mutual fund filings should be aware of scheduled disruptions to electronic filings and a change required in order to continue electronic filing. 

 

Filers should expect an electronic filing outage on Thursday, January 9, 2020 in order for ClearSky to complete and verify the migration and confirm state access to the new filing database.  Filers will also need to update the BlueExpress State URL. NDBF notified electronic filers of the required update. If you did not receive the notification or otherwise need assistance, please contact NDBF at DOB.SecuritiesFiling@nebraska.gov or 402-471-3445.

 

ClearSky provided NDBF with the following schedule:

 

Date:  

January 8, 2020          Final day to use current BlueExpress State URL

January 9, 2020          Electronic filing outage for all filers

January 10, 2020        Electronic filing to resume using new BlueExpress State URL

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Industry Advisory - BlueExpress Outage and Update.pdf

 

Department of Banking and Finance

Industry Advisory

NDBF OFFERS RESOURCES TO HELP INVESTMENT PROFESSIONALS WORK WITH CLIENTS AFFECTED BY THE OPIOID EPIDEMIC

October 28, 2019 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (NDBF) today announced the availability of resources to raise awareness of the impact of the opioid epidemic on investment professionals and their clients, especially senior investors.

"The opioid crisis in North America is devastating families and our communities. It is also a rising contributor to elder financial abuse," said NDBF Deputy Director Claire McHenry.

The U.S. Department of Health and Human Services in 2017 declared opioid abuse a public health emergency and estimated in 2017 that 11.4 million Americans misused prescription opioids. Recent research by Virginia Tech’s Center for Gerontology and the Elder Justice Coalition identified a connection between opioid abuse and elder abuse, including financial exploitation.

Deputy Director McHenry said the agency is offering two new resources to help raise awareness of how the opioid crisis impacts investment professionals and their clients.

The first is a guide to help investment professionals understand the many ways opioid use disorder might affect their clients, how to spot signs of financial exploitation, and how to help clients affected by opioid abuse. The guide also includes a list of helpful resources. The second resource consists of conversation starters financial professionals can use to help start a dialogue with clients about the financial ramifications of opioid addiction.

"Investment adviser representatives and broker-dealer agents are well positioned to be part of the solution, but they have to be prepared to talk to clients in crisis," Deputy Director McHenry said. "The cost of opioid addiction and treatment can have major financial ramifications. Clients facing opioid addiction – either themselves or within the family – may be strapped for resources and can be vulnerable to poor financial decision-making or even fraud."

The resources are also available on the agency’s website ndbf.nebraska.gov.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

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Industry Advisory - Opioid Guide.pdf

Industry Advisory - Opioid Addiction.pdf

NDBF ISSUES ADVISORY ON OPPORTUNITY ZONE INVESTMENTS

 

August 6, 2019 (LINCOLN, NEB.)  — The Nebraska Department of Banking and Finance (NDBF) today issued an advisory to raise awareness of the risks associated with investments in opportunity zones, economically distressed communities where new investments, under certain conditions, may be eligible for preferential tax treatment as part of the 2017 Tax Cuts and Jobs Act.

 

“This program provides an opportunity to strengthen investments in low-income communities and rural areas that traditionally struggled to attract the capital necessary to spur economic growth and job creation,” Deputy Director Claire McHenry said.

 

Investors attracted to opportunity zone investments for the potential tax benefits and promise of return on investment should weigh various factors before deciding to invest. The advisory discusses how opportunity zone investments work, the risks investors should understand when considering opportunity zone investments, and steps investors can take to protect themselves.

 

The full advisory is available on the agency’s website ndbf.nebraska.gov.

 

Separately, the North American Securities Administrators Association (NASAA), of which NDBF is a member, and the U.S. Securities and Exchange Commission (SEC) recently issued a summary that explains the application of the federal and state securities laws to opportunity zone investments.

 

The summary also provides an overview of the SEC and state requirements relating to qualified opportunity funds and their securities offerings, broker-dealer registration, and considerations for advisers to a qualified opportunity fund. The summary is available on the NASAA website http://www.nasaa.org/wp-content/uploads/2019/07/Opportunity-Zones-NASAA-SEC-Staff-Statement.pdf

 

Before making any financial decisions, ask questions, do your homework and contact NDBF at (402) 471-3445 for more information.

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Opportunity ZOne.pdf

Informed Investor Advisory - Opportunity Zone.pdf

 

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NDBF RECOGNIZES WORLD ELDER ABUSE AWARENESS DAY

WARNS OF DANGER SIGNS FOR SUSPECTED FINANCIAL ABUSE

June 14, 2019 (LINCOLN, NEB.)  — In recognition of World Elder Abuse Awareness Day (WEAAD) 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 elder financial abuse, including potential exploitation by family members or caretakers.

“Senior financial exploitation is a growing problem. Many in our elderly population are vulnerable due to social isolation and distance from family, caregiver, and other support networks,” Deputy Director Claire McHenry said. “Taking the time to understand the warning signs and the steps that can be taken to report financial abuse are key to helping those who cannot help themselves.”

The North American Securities Administrators Association (NASAA), of which NDBF is a member, has developed resources to help call attention to the red flags of fraud and suspected guardian financial abuse. For example, the “Guarding the Guardians” publication provides examples of exploitation and information on how to report suspected abuse.

Examples of suspected guardian abuse include:

• The guardian takes money from the protected individual’s investment portfolio to buy a flashy car for personal use.

• The guardian overcharges for a caregiving service, such as billing the estate hourly for wait time to file paperwork in person when it could have been submitted online.

• The guardian does not take the protected individual to medical appointments or purchase necessary medication.

The publication as well as other resources to help seniors are available on NASAA’s Serve Our Seniors website at serveourseniors.org/about/investors/. Other senior investor protection resources are available on the NDBF’s website at ndbf.nebraska.gov.

Financial and investment professionals also are encouraged to contact the agency to request a Senior$afe presentation on how to spot and report suspected senior financial exploitation.

Deputy Director McHenry asks anyone with suspicions of possible senior financial exploitation to contact the agency at 402-471-2171.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - WEAAD.pdf

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LPL Financial to pay $499,000 to Nebraska for Securities Violations

 

April 30, 2019 (Lincoln, Nebraska) – The Nebraska Department of Banking and Finance (NDBF) announced today that LPL Financial has paid the State of Nebraska $499,000 as part of a nationwide settlement of claims that it sold unregistered securities.

 

“This settlement sends a strong message that states hold firms accountable and continue to serve a vital role in protecting investors,” Deputy Director Claire McHenry said.

The settlement stems from a multi-state investigation led by Alabama and Massachusetts.  State securities regulators concluded that LPL offered and sold unregistered, non-exempt securities and failed to reasonably supervise the flow of information to ensure full and proper compliance with state securities registration requirements.

The settlement also found that LPL violated state securities laws by failing to maintain books and records, failing to effectively supervise its agents and staff, and that it was negligent in cancelling certain third-party services critical for compliance with state securities requirements.

In total, LPL will pay $26 million in civil penalties among the states. Additionally, LPL will offer to repurchase from investors’ securities held in LPL accounts determined to have been unregistered, non-exempt equity or fixed-income securities sold since October 1, 2006, plus 3% interest.

The settlement amount includes a $60,000 fine, $80,000 in costs to the Department, and $359,000 to be paid to the Department of Banking and Finance Settlement Cash Fund.  The settlement funds will primarily be utilized to further financial literacy programs for K-12 Nebraska students.

A copy of the Consent Order is available on the Department’s website http://www.nebraska.gov/ndbf/searches/Orders/20190410_LPLFinancialLLC_ConsentOrder.pdf 

More information about the laws governing the financial industries in Nebraska can be found on the Department’s website at ndbf.nebraska.gov.  If you have questions about any investment matters, call the Department’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - LPL Settlement.pdf

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Nebraska Energy Office 1% Energy Related Disaster loans through Nebraska Financial Institutions

The Nebraska Department of Banking and Finance and the Nebraska Energy Office (NEO) presented a webinar on April 12, 2019.   The webinar focused on the NEO Dollar and Energy Savings Loan Program 1% loans to assist those impacted by floods to repair their homes, provided the home has not been condemned. 

Please click here for a copy of the full webinar: 

NDBF & NEO 1 % Disaster Loans Webinar

Please click here for the slide deck with updated phone numbers since the call:  

Click here

 

 

April 2, 2019 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (NDBF) today announced its support of Financial Literacy Month, a nationwide investor awareness initiative that invites people to improve their understanding of financial principles and best practices.

"Educating investors of all ages empowers them to make sound financial choices," said Deputy Director Claire McHenry.

For this year’s Financial Literacy Month campaign, NDBF is focusing on raising awareness among millennials, those born between 1981 and 1996, of the importance of investing and protecting those investments from financial predators.

"Financial literacy is important for the financial future of Nebraska. We cannot afford to let the next generation embark on these critical early investing years without the financial literacy and awareness they will need," McHenry said.

A recent survey by the North American Securities Administrators Association (NASAA), of which the NDBF is a member, found that three-quarters of millennials (76 percent) said they do not have a brokerage account to hold investments such as stock, bonds, mutual funds or retirement assets. Among those who do invest, nearly half (46 percent) said they were not concerned about their financial security in retirement.

"This shows a gap in understanding of how to build wealth for a financially secure retirement. I encourage investors, or those thinking about investing, to visit our website, which offers a variety of investor awareness and protection resources." McHenry said.

Investors also are encouraged to contact NDBF before making an investment decision to learn more about the investment product and the person offering it for sale. "One quick call is all it takes," McHenry said. "Education is an investor’s best defense against investment fraud and best tool to build a strong financial future."

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Financial Literacy Month.pdf

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Legislative Bills 258  & 259 with Effective date March 8, 2019 and LB 355 has  Various Operational Dates.

For more information about the Legislative Bills please Click the below pdf links for the respective bills.

Legislative Bill 258 - Effective March 8, 2019

Legislative Bill 259 - Effective March 8, 2019

Legislative Bill 355 - Various Operational Dates

 

 

 

 

February 25, 2019 (LINCOLN, NEB.) —The Nebraska Department of Banking and Finance (NDBF) is participating in America Saves Week and Military Saves Week, February 25-March 2, to help raise awareness among investors, especially those entering the workforce or those early in their careers, of the importance of safeguarding their financial futures.

"Building a safe and secure financial future it is critical for all generations and we must ensure this important message is making its way to Millennials," said Deputy Director Claire McHenry.

The nation’s 75 million Millennials, those born between 1981 and 1996, have surpassed Baby Boomers as the largest demographic in the United States. With nearly a quarter of the entire U.S. population, Millennials also make up nearly two-fifths of all working age Americans – those saving and investing to build retirement nest eggs.

"Millennials either are just coming of age or are starting to get serious about building wealth for their financial futures. At the same time, many are straddled with student loan debt, are ill-equipped with the financial literacy tools necessary to build their future and may become susceptible to go-to promise of con artists: high returns for low risk," Deputy Director McHenry said.

To help promote investor awareness and protection, the NDBF is providing three quick tips.

1. Watch for the Red Flags of Fraud. "If it sounds too good to be true, it usually is," Deputy Director McHenry said.

2. Understand Who You Are Doing Business With. "Many of us spend more time reading restaurant’s reviews than researching the background of our stockbroker or investment adviser," she said.

3. Know where to turn for help. "Your state securities regulator is just a click or call away," Deputy Director McHenry said.

NDBF can provide detailed information about an investment product, broker or adviser. This information is free and easy to obtain. For more information, please contact NDBF at (402) 471-3445 or online at www.ndbf.nebraska.gov.

NDBF is a proud partner in America Saves Week and Military Saves Week, national public awareness campaigns led by the Consumer Federation of America to motivate people to save for their financial future. To learn more, visit www.americasaves.org.

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Military Saves Week.pdf

Informed Investor Advisory Military Saves.pdf

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Dec. 3, 2018 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (“NDBF”) released today the results of its 2018 Cybersecurity Survey of Nebraska-Registered Investment Advisers. The report details results of a voluntary survey issued to all Nebraska advisers used to assess cybersecurity practices and risk management.  The 2018 survey is follow up to the 2016 Cybersecurity Survey to determine whether Nebraska advisers had improved their cybersecurity practices. 

“The Department wishes to thank all of the Nebraska advisers that participated in the survey,” Deputy Director Claire McHenry said.

In general, NDBF found that Nebraska advisers were taking steps to address cybersecurity threats, but that firms also could improve their practices.  The survey focused on several cybersecurity issues, including devices, Wi-Fi access, passwords and encryption, and anti-virus/anti-malware protections.  The report also identifies best practices and resources to assist firms to address cybersecurity issues. 

“Cybersecurity remains a key priority for the Department,” said Deputy Director McHenry.  “It is essential that investment advisers address cybersecurity threats to protect their clients and their firms, regardless of the size of the firm.”

2018 Cybersecurity Survey Report.pdf

 

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NEBRASKA MONEY TRANSMITTER LICENSEES

IMPORTANT NOTICE REGARDING CALL REPORTS

The Nebraska Department of Banking and Finance ("NDBF"), by Order of the Director effective November 9, 2018, has adopted "mandatory" Money Services Businesses ("MSB") Call Reports under the Nationwide Multistate Licensing System ("NMLS"). A copy of the Order is attached to this Notice.

Such reporting will commence with the Q4 2018 reporting period, and the initial report is due 45 days after such fourth quarter end (February 14, 2019). Previously, filing MSB Call Reports electronically through NMLS was optional in Nebraska. A "Location" report, which will be available on the NDBF website, will continue to be required to be submitted directly to the NDBF at renewal. A request for an exemption from mandatory reporting through the NMLS may be submitted to the Director.

MSB Call Reports were developed with the goal of enhancing and standardizing the information available to state regulators concerning the activities of MSB licensees, including money transmitters. Electronic submission of MSB Call Reports through the NMLS enables licensees to efficiently, effectively, and securely comply with the reporting requirements of multiple states. Licensees will be able to submit quarterly and annual information directly in NMLS. Twenty-four state agencies currently have adopted mandatory NMLS MSB Call Reports in NMLS. Training and additional materials are available in the NMLS Resource Center

Questions regarding this Notice or the attached Order should be directed to NDBF at dob.consumerfinance@nebraska.gov@nebraska.gov>

Mandatory Money Transmitter Call Reports Order

NDBF ISSUES ADVISORY ON MARIJUANA-RELATED INVESTMENTS

October 22, 2018 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (NDBF) is cautioning investors about schemes and risks associated with marijuana-related investments.

Investments in marijuana business ventures are becoming more prevalent and are receiving increased media coverage. Fraudsters may attempt to use this attention to convince investors to hand over money for risky or outright fraudulent marijuana ventures.

 

The advisory provides information about common marijuana-related investment schemes and the unique risks associated with marijuana-related investments, including reverse merger and pump-and-dump schemes, and jurisdictional legality.

 

The full advisory is available on the agency’s website here.

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Marijuana.pdf

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PROTECT YOURSELF FROM INVESTMENT FRAUD

Sept. 11, 2018 (LINCOLN, NEB.) — If you are looking at an investment opportunity, the Nebraska Department of Banking and Finance (NDBF) urges you consider this first: Americans lose billions of dollars to fraud each year. A little extra effort can help you protect your money. While the details of investment scams constantly change, common warning signs, or red flags, are often present. Watch out for:

• Guaranteed high returns – a guarantee is only as good as the person offering it, and their credit rating.
• Low risk and high returns – if it is a high return investment, you are putting your money at risk.
• Offshore investment opportunities – if you send your money offshore, you lose the protection offered by state securities laws.
• Tax loopholes – you will still have to pay taxes, even after you lose your money.

 

 If you are offered an investment opportunity, consider these questions:

 

• Are you dealing with a licensed financial adviser or broker? Anyone selling securities or offering investment must be registered with NDBF or operating under an exemption. Call NDBF or go to brokercheck.finra.org to check their registration and background.

• Do you understand how the investment works? Scam artists rely on your lack of knowledge to make money. Seek independent advice and verify what you have been told. Get terms of the deal in writing and keep copies.

• Have you had enough time to make a decision? Take your time. Do not give in to high-pressure sales tactics.

• Do you understand how the salesperson makes money? Ask questions about what commissions the sales person will receive and whether they have any of their own money invested in the venture.

   

If you have answered no to any of these questions, investigate further.

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Protect yourself from investment fraud.pdf

 

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NEBRASKA DEPARTMENT OF BANKING AND FINANCE

Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on July 25, 2018, commencing at 9:30 a.m., at the offices of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508.

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

1) The proposed repeal of Title 45, Chapters 1-5, 10, 13-14, 22, and 29.

2) The proposed repeal of Title 46, Chapters 1-6, 9 and 12.

3) The proposed repeal of Title 47, Chapters 1-11.

4) The proposed revisions to Title 48, Chapters 6, 13, 16, 38, and 39.

5) The proposed repeal of Title 48, Chapter 35.

45 NAC—Banking Rules: Chapters 1-5, 10, 13-14, 22, and 29, are proposed for repeal as such rules are obsolete.

46 NAC—Industrial, Savings & Loan, Credit Union Rules: Chapters 1-6, 9, and 12 are proposed for repeal as such rules are obsolete.

47 NAC—Electronic Transmission Terminal Rules: Chapters 1-11 are proposed for repeal as such rules are obsolete.

48 NAC—Securities Rules: The following amendments are proposed for Title 48:

48 NAC 6—Agents of Broker-Dealers: The purpose of the proposed revision of 48 NAC 6 is to update provisions governing broker-dealer agents. The proposal adjusts examination requirements for agents to correspond to new examination requirements established by the Financial Industry Regulatory Authority.

48 NAC 13—Information Requirements for the Section 8-1110(5) Exchange Exemption: The purpose of the proposed revision of 48 NAC 13 is to eliminate an obsolete notice filing requirement and to designate approved exchanges for the exchange exemption.

48 NAC 16—Information Requirements for the Section 8-1111(15) Agricultural Cooperative Exemption: The purpose of the proposed revision of 48 NAC 16 is to clarify that the filing requirements apply to all cooperatives and limited cooperative associations.

48 NAC 35—Repealed. This chapter is proposed for a complete repeal as such rule is obsolete.

48 NAC 38—Information Requirements for the Section 8-1111(23) Notice: The purpose of the proposed revision of 48 NAC 38 is to increase the amount that can be raised from $250,000 to $750,000, and to authorize issuers to rely upon the federal "Intrastate Offering Exemption", 17 CFR 230.147A.

48 NAC 39—Conditions and Information Requirements for the Section 8-1111(24) Crowdfunding Exemption: The purpose of the proposed revision of 48 NAC 39 is to eliminate certain restrictions on advertising. Issuers will be allowed to advertise across state lines as long as the advertising states that the offering is limited to Nebraska residents.

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, 1201 N Street, Suite 120, 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 hearing, which comments will be made part of the hearing record at the time of the hearing.

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, (800) 833-7352 TDD. This contact should be made at least seven (7) days prior to the hearing.

Dated at Lincoln, Nebraska, this 19th day of June, 2018.

Mark Quandahl, Director

Nebraska Department of Banking and Finance

 

The drafts can also be found HERE(https://ndbf.nebraska.gov/about/legal/ndbf-2018-rules-updates-hearing-20180725) on the Department's Website.

NDBF ISSUES ADVISORY ON CRYPTOCURRENCIES AND ICOS

June 8, 2018 (LINCOLN, NEB.)  The Nebraska Department of Banking and Finance (NDBF) reminds investors to be cautious when investing in cryptocurrencies and initial coin offerings (ICOs). Recent enforcement actions by federal and other state regulators against ICOs and cryptocurrency-related investment products show that fraudulent activity involving these products poses a significant threat to Main Street investors.

"Fraudulent activity harms investors and legitimate businesses interested in taking advantage of the new technology. We urge investors to approach initial coin offerings or cryptocurrency-related investment product with extreme caution," NDBF Deputy Director Claire McHenry said.

To help investors understand the risks associated with investing in ICOs and cryptocurrency-related investment products, NDBF issued two new Informed Investor Advisories, "What to Know About ICOs" and "Be Cautious of the Crypto Investment Craze."

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

 

Consumer Advisory - Cryptocurencies and ICOs
Informed Investor Advisory Cryptocurrency
Informed Investor Advisory ICO

NDBF ISSUES ADVISORY ON FINANCIAL UNICORNS

April 24, 2018 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (NDBF) is cautioning investors about pre-IPO investments in large privately held companies with supposed valuations of more than $1 billion, commonly referred to as "unicorns." Investing in unicorns is speculative and generally unavailable to retail investors.

 

NDBF is sharing an Informed Investor Advisory about financial unicorns. The advisory provides information and resources to help investors better understand "unicorn" companies. The advisory discusses the risks of investing in pre-IPO companies, including fraud, as well as disclosure, liquidity and valuation considerations.

 

The full advisory is available on the agency’s website here.

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Unicorns

Informed Investor Advisory - Unicorns

Conversation Starters For Military Families

 

MARCH 1, 2018 (LINCOLN, NEB.) — This week is Military Saves Week, which encourages members of the military and their families to save money and build wealth.  The Nebraska Department of Banking and Finance (“NDBF”) proudly supports our service members and understands that they have unique challenges.

Military life changes quickly with deployments, relocations, promotions or changes in dependents. NDBF is issuing conversation starters to help military families prepare themselves to make safe and wise financial decisions. 

Budgeting

• How much income goes toward fixed expenses (e.g. rent, insurance) versus flexible expenses (e.g. entertainment and investments)?
• Have you created a financial plan to show where your money goes?
• Have you taken advantage of military resources to help develop personal finance skills?
• Are your family members aware of all financial accounts, bill deadlines, investments, etc. in case of deployment or an emergency?

Saving

• What are your short and long-term financial goals (e.g. buy a home, start a family)?
• Do you have an emergency fund for unexpected financial hardships?
• How could you spend less and save more?
• Are you aware of the special savings accounts and financial programs available to military personnel on deployment?

Investing

• What are the risks and benefits of investing compared to saving?
• What investments are appropriate now (e.g. securities, real estate, education)?
• How do you balance immediate financial needs with long-term financial goals?
• Do you understand basic investing strategies (e.g. diversification and dollar cost averaging)?
• Who can help you make informed financial or investment decisions?
• Are you taking advantage of all government-offered investment and retirement plans?

Scams and Frauds

• How do you identify and report suspected fraud?
• Where can you verify the background of financial professionals or firms?
• How can you effectively monitor your investments?
• How can you stay aware of current investment scams and fraud?

Additional information about Military Saves Week and a list of resources and events is available at www.militarysaves.org. 

 

More information about the laws governing the securities industry in Nebraska can be found on NDBF’s website at www.ndbf.nebraska.gov. If you have questions about any investment matter, call NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

Consumer Advisory - Military Families Conversation Starters

NDBF IDENTIFIES COMPLIANCE, CYBERSECURITY RESOURCES FOR INVESTMENT ADVISERS

DECEMBER 19, 2017 (LINCOLN, NEB.) — The Nebraska Department of Banking and Finance (“NDBF”) draws attention to resources for its state-registered investment advisers available from the North American Securities Administrators Association (“NASAA”), of which it is a member.  At its annual conference in September, NASAA released two reports important to state-registered investment advisers.

The 2017 NASAA Investment Adviser Coordinated Examination Report provides information about more than 1,200 coordinated examinations of state-registered investment advisers by 37 state securities regulators, including NDBF.  The report identified the top three findings as books and records, registration, and contracts. In particular, examiners found problems with client suitability information, inconsistencies between Parts 1 and 2 of Form ADV, and problems with the fee description in the contract. These findings are consistent with Nebraska’s examination findings. 

The exam report identifies 10 best practices to assist investment advisers in developing compliance policies and procedures, including maintaining all required records, maintaining up-to-date suitability information, and reviewing the Form ADV annually.  NDBF reminds investment advisers that under new rules, NDBF is requiring all investment advisers to adopt and implement written policies and procedures reasonably designed to prevent violations of the Securities Act of Nebraska on or before June 5, 2018. 

During the coordinated examinations, state securities examiners also found nearly 700 deficiencies involving cybersecurity.  Cybersecurity is a key priority for NDBF and NASAA.  In February 2016, NDBF surveyed its state-registered investment advisers about their cybersecurity practices.  The survey found that all firms used passwords on computers used for advisory business and most had created some policies and procedures about cybersecurity. The survey also found that investment advisers could improve cybersecurity readiness by using stronger passwords, maintaining up-to-date anti-virus/anti-malware software and operating systems, and encrypting sensitive client data, particularly on mobile devices.  NDBF will conduct a similar survey in February 2018 to gather updated information and identify trends in cybersecurity practices in Nebraska.

NASAA also released a cybersecurity checklist to help state-registered investment advisers gauge their cybersecurity preparedness; identify, protect, and detect vulnerabilities; and respond and recover from cyber events.  Cybersecurity is a growing challenge, even for smaller firms, and NDBF encourages investment advisers to review the checklist and prepare for possible cybersecurity events.  

 

Resources for State Investment Advisors

On November 13, 2017, the Federal Trade Commission issued a notice to consumers who lost money using Western Union services that they may be eligible for a refund.

If you lost money to scammers who had you pay using Western Union between January 1, 2004 and January 19, 2017, you can now ask for your money back.   

To learn more, follow this link to the Federal Trade Commission.

Nebraska Department of Banking and Finance entered into a Consent Order with Ocwen Loan Servicing, LLC and Ocwen Mortgage Servicing, Inc.

On November 3, 2017, the Nebraska Department of Banking and Finance entered into a Consent Order with Ocwen Loan Servicing, LLC and Ocwen Mortgage Servicing, Inc. The Consent Order resolves the Department’s April 20, 2017, Cease and Desist Order against the Ocwen entities and provides several protections for Nebraska mortgage consumers.

Under the Consent Order the Ocwen entities will not acquire new residential mortgage servicing rights until April 30, 2018, and will transition all loans to a new servicing system. The Ocwen entities will also engage an independent third-party auditor to test approximately 9,000 loan files for compliance with state and federal escrow laws at an estimated cost to the Ocwen entities of at least $4.4 million.

The Nebraska Department of Banking and Finance will receive regular reports on Nebraska mortgage loans and will interact with the Ocwen entities, on behalf of consumers, through an enhanced consumer complaints processing procedure. The Department will also receive regular reports on the Ocwen entities’ financial condition for three years and will get direct notification if certain liabilities are incurred by the Ocwen entities.

For media inquiries contact Mark Quandahl, Director, or Patricia Herstein, NDBF General Counsel. Consumers can contact NDBF Department Legal Counsel for information regarding the Ocwen entities, or in the event they experience problems with payments or other account issues.

Ocwen - Consent Order, Exhibit A and Exhibit B
Ocwen - Loan Servicing Cease and Desist 4 20 2017 seal

NDBF ISSUES BINARY OPTIONS ADVISORY

SEPTEMBER 15, 2017 (LINCOLN, NEB.) — A binary option is a type of all-or-nothing investment contract, similar to placing a bet. Like the flip of a coin, there are only two possible outcomes: heads you win or tails you lose. When an investor purchases a binary option contract, the investor predicts the value of an underlying asset (currency, stock, etc.) at a predetermined time or date in the future – similar to placing a bet. If the investor correctly predicts the asset price at the end of the contract, which can be just a matter of minutes, the investor receives the payout agreed upon in the contract. If the investor is incorrect, there is no payout and the investor loses the amount invested in the binary option.

The Nebraska Department of Banking and Finance (“NDBF”) is cautioning investors about schemes related to binary options amid the proliferation of online binary option platforms and a growing number of related investor complaints. The advisory provides information and resources to help investors better understand binary options, their risks and where to turn for help.

The advisory also discusses common investor complaints and offers common tactics and warning signs of schemes related to binary options, including: unsolicited investment offers; high-pressure sales tactics; personal information requests; and a lack of information about the offering firm or its management.

The full advisory is available on the agency’s website at www.ndbf.nebraska.gov/about/news-publications.

Before making any financial decisions, ask questions, do your homework and contact NDBF’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

CONTACT: Claire McHenry, Deputy Director – Securities Bureau
PHONE: (402) 471-2171
EMAIL: claire.mchenry@nebraska.gov

Consumer Alert Binary Options

Ohio Company Ordered to Stop Soliciting Investors

August 31, 2017 (Lincoln, Nebraska) – The Nebraska Department of Banking and Finance (“Department”) issued a Cease and Desist Order against an Ohio company known as A Voice 4 U, LLC; its President, Katrina S. Farmer (“Farmer”); and its affiliates, control persons, officers, directors, agents, and employees.  The Order prohibits the entity and individuals named from offering or selling securities in Nebraska until the securities have been registered with the Department. The Order also prohibits the entity and individuals named from offering or selling securities in Nebraska until they are registered as broker-dealers or agents of a broker-dealer with the Department.  

From 2012 to 2014, Farmer sold profit-sharing agreements in A Voice 4 U, LLC to investors in Nebraska. The profit-sharing agreements were not registered in Nebraska under the Securities Act of Nebraska. Neither A Voice 4 U, LLC nor Farmer were registered in Nebraska as a broker-dealer or agent of a broker-dealer.  The sale of unregistered securities and the solicitation of investments by unlicensed broker-dealers is illegal under Nebraska law.

Individuals who invested in the above securities are asked to contact the Department.

More information about the laws governing the securities industry in Nebraska can be found on the Department’s website at www.ndbf.nebraska.gov. If you have questions about any investment matters, call the Department’s Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state.

CONTACT: Thomas A. Sindelar, Investigation Supervisor
PHONE: (402) 471-2171
EMAIL: thomas.sindelar@nebraska.gov 

A Voice 4 U C&D
A Voice 4 U Consumer Alert

NDBF to Hold August 17^th Investment Adviser Compliance Seminar

The Nebraska Department of Banking and Finance (“NDBF”) recently announced comprehensive amendments to its Rules under the Securities Act of Nebraska, contained in Title 48 of the Nebraska Administrative Code, became effective on June 5, 2017.  The amendments reflect NDBF’s goal of reducing regulatory complexity and promoting uniformity while protecting investors and promoting capital formation in Nebraska.

The NDBF Bureau of Securities will host a compliance seminar on August 17, 2017 at 2:00 pm CDT to assist investment advisers and their compliance personnel in understanding and complying with these new requirements.  Speakers will include NDBF Director Mark Quandahl, Deputy Director – Securities Bureau Claire McHenry, and Securities Bureau Counsel Mike Cameron. 

People may attend in person or electronically via webinar.  Space is limited.  Register by August 11, 2017 to reserve your seat.

Where:            Training Room – Basement Level
                        1526 K Street
                        Lincoln, NE 68508

When:             August 17, 2017
                        2:00 pm – 3:30 pm

Registration:  Click here to email the NDBF Securities Bureau.  Include in the email your name, firm, and whether you will attend in person or via webinar. Webinar participants will be emailed instructions on joining the webinar.

 

 NDBF Investment Adviser Compliance Seminar

NDBF Recognizes World Elder Abuse Awareness Day

Encourages Financial Firms to Watch for Signs of Elder Financial Fraud and Exploitation

June 15, 2017 (LINCOLN, NEB.) – In recognition of World Elder Abuse Day on June 15, 2017, the Nebraska Department of Banking and Finance (NDBF) reminds financial professionals of the importance of safeguarding Nebraska’s senior population by keeping a watchful eye for signs of elder financial exploitation and promptly reporting possible abuse to appropriate authorities.

Elder financial abuse is on the rise due to the amount of wealth seniors have accumulated throughout their careers and the increasing number of retirees throughout North America.

"Seniors are often targeted for financial fraud and exploitation because they may be isolated from family, caregivers, and other support networks. In other instances, it could be family or caregivers who are taking advantage of the vulnerable adult who feels he/she cannot say anything due to fear of retribution. That's why it is important to know the red flags that could signal an elder's savings may be in danger, " NDBF Director Mark Quandahl said.

Director Quandahl highlighted three warning signs of possible elder financial fraud or exploitation to watch for:

• Has the elder moved away from existing relationships and toward new associations with other "friends" or strangers who show excessive interest in his or her finances or accounts, refuse to allow the elder to speak or are reluctant to leave the senior's side during conversations?
• Does the elder show an unusual degree of fear, anxiety, submissiveness or deference toward the person accompanying him or her?
• Does the elder display unexplained or unusual excitement over an investment opportunity, financial windfall or prize check?

"Financial services professionals are uniquely positioned to serve as a front line of defense to spot potential elder financial fraud and exploitation and alert authorities," Director Quandahl said.

Financial professionals who suspect elder financial fraud or exploitation are encouraged to contact NDBF through the department's website at www.ndbf.nebraska.gov, or by calling the NDBF Consumer Hotline toll free at (877) 471-3445 in Nebraska, or (402) 471-3445 if you are out of state. People who have reason to believe a vulnerable adult has been abused, neglected or exploited may contact the Nebraska Department of Health & Human Services, Adult Protect Services 24-hour hotline toll free at (800) 652-1999 or lo.cal law enforcement.

NDBF has teamed with the North American Securities Administrators Association, of which it is a member, to provide free training to help financial services employees learn how to identify and report suspected cases of senior financial exploitation. To learn more about the Senior$afe training program, or to request a training session for your firm, contact the Department.

 

World Elder Abuse Awareness Day

 

Nebraska Man Convicted of Securities Fraud

May 22, 2017 (Lincoln, Neb.) – Scott Robert Prill (“Prill”), formerly of Kearney and Holdrege Nebraska, has been convicted of securities fraud in three Nebraska counties. Prill sold unregistered promissory note securities to Nebraska residents to fund a cattle business. Prill also fraudulently failed to provide material information to the investors in his offer and sale of securities to them. Prill was sentenced to five years of probation in Douglas County, five years of probation in Phelps County, and six years of probation in Buffalo County. In addition, Prill was sentenced to 180 days in jail in Buffalo County. Prill was also ordered to pay restitution totaling $128,000.

Scott Robert Prill Consumer Alert May 2017

Cease and Desist Order Issued to Mortgage Servicers

The Nebraska Department of Banking and Finance has issued a Cease and Desist Order to Ocwen Financial Corporation through its Nebraska licensed subsidiaries, Ocwen Loan Servicing, LLC and Ocwen Mortgage Servicing, Inc.  The Order prohibits the companies from the acquisition of mortgage servicing rights and the origination of mortgage loans until they are able to prove they can appropriately manage their consumer mortgage escrow accounts.

 

NDBF Press Release – Ocwen Financial Corp. 4-20-2017

Ocwen Financial Corp. Cease and Desist Order

Consumer Fact Sheet

Omaha Company Ordered to Stop Soliciting Investors

The Nebraska Department of Banking and Finance (“Department”) issued a Cease and Desist Order against an Omaha-based company, Parker Grant BMC, Inc., its President Daniel M. Porter (“Porter”), and its affiliates, control persons, officers, directors, agents, and employees. The Order prohibits the entity and individuals named from offering or selling securities in Nebraska until they are registered as broker-dealers or agents of a broker-dealer with the Department.

Parker Grant BMC Consumer Alert
Parker Grant BMC C&D

Federal Regulatory Alert - Unauthorized Banking Entity: The Office of the Comptroller of the Currency is warning business owners and consumers of an entity calling itself Banc of Omaha. Business owners and consumers (who may not be business owners) are receiving letters by fax and mail stating that their company has been approved for up to $250,000 in working capital and to respond by a deadline because of limited funds.

Full OCC Press Release

Effective August 1, 2016, the Department revised the form, “Notices of Switch Operation,” to provide for the annual notice of operation filing. The annual notice is due on or before September 1, 2016.

Click here for the “Switches” page.

The Nebraska Department of Banking and Finance (“NDBF”) issued an Emergency Order against Jerome P. Bonnett, Jr., a/k/a Joe Bonnett and two of his companies, Bonnett Financial Services, Inc., and BWM Advisors, LLC, Omaha, Nebraska, on May 18, 2016. The Order revoked Bonnett’s registration as an investment adviser representative and suspended the registration of BWM Advisors, LLC, for multiple violations of the Securities Act of Nebraska (“Act”).

In addition, the Nebraska Attorney General’s office, on behalf of NDBF, filed a civil action on May 18, 2016, in Douglas County District Court against Bonnett and his companies alleging violations of the Act and misappropriation of client funds. The lawsuit seeks injunctive relief, freezing of assets, and the appointment of a receiver. On May 20, 2016, the Douglas County District Court granted a Temporary Restraining Order and Asset Freeze against Jerome P. Bonnett, Jr. and the companies named above.

The hearing on the State’s request for a receiver was held June 6, 2016, before Douglas County District Judge Duane Dougherty. Judge Dougherty entered an Order appointing Thomas D. Stalnaker, 1111 N. 102nd Court, Suite 330, Omaha, Nebraska, 68114, as receiver for Bonnett Financial Services, Inc., BWM Advisors, LLC, Omaha, Nebraska, and the Estate of Jerome P. Bonnett, Jr.

NDBF has sent a letter and survey to all known clients of Jerome P. Bonnett, Jr. and the named companies. Responses will be used to assist the receiver. Persons who have not yet returned the surveys are asked to do so promptly. Clients who did not receive the letter are asked to contact NDBF at 402.471.2171.

More information will be posted as it becomes available.

Read the Emergency Order
Read the Court Complaint
Read the Court Order
Read the Order Setting Hearing
Read the Order Appointing Receiver

NEBRASKA DEPARTMENT OF BANKING AND FINANCE WARNS CONSUMERS TO BEWARE OF SCAM INVOLVING OLD AND NON-EXISTING DEBTS

The Nebraska Department of Banking and Finance is warning residents to beware of a currently popular debt collection scam in which individuals call people to demand payment of an old “payday loan” and then threaten them with possible arrest or court action if they do not immediately send payment.

Full Press Release

The Nebraska Department of Banking and Finance Securities Bureau is conducting a series of seminars for “Switch” Investment Advisers as a result of the Dodd-Frank legislation. The seminars will provide Switch IA’s with information on relevant Nebraska law as well as a general overview of the Nebraska registration and examination processes. The seminars also present an excellent opportunity to meet and ask questions of Bureau staff. The seminars are free of charge.

December 1, 2011

IA “Switch” Workshop
Presented by the Nebraska Department of Banking and Finance Bureau of Securities
1:00 p.m. to 2:30 p.m. Omaha State Office Building | Room 233J | 1313 Farnam Street | Omaha, NE

December 8, 2011

IA “Switch” Workshop
Presented by the Nebraska Department of Banking and Finance Bureau of Securities
1:00 p.m. to 2:30 p.m.
Nebraska Department of Banking and Finance
Commerce Court Building | Suite 400 | 1230 O Street | Lincoln, NE
For more information about the workshops: (402) 471-3445
Click here to visit the IA Switch Resource Center

Lincoln, Neb., November 4 – The Nebraska Department of Banking and Finance (NDBF) announced that at 6:00 p.m. today it closed Mid City Bank, Inc., Omaha, Nebraska. The bank’s four branch offices, also located in Omaha, Nebraska, were simultaneously closed. The NDBF had been closely monitoring the bank for some time and recently made a demand for a capital injection, which was not met. The Department named the Federal Deposit Insurance Corporation (FDIC) as receiver of the bank. The FDIC has entered into a purchase and assumption agreement with Purdum State Bank, Purdum, Nebraska, which will change its name to “Premier Bank.” The transaction includes the assumption of all customer deposits. All offices of the bank will be open for business on Saturday, November 5, under the new name, Premier Bank. Premier Bank is owned by the Greg Stine family.

Full Press Release

The Nationwide Mortgage Licensing System (NMLS) is now accepting registration of mortgage loan originators (MLO) who are employees of depository institutions and certain subsidiaries. Following expiration of the 180-day initial registration period on July 29, 2011, any employee of an agency-regulated institution who is subject to the registration requirements will be prohibited from originating residential mortgage loans without first meeting these requirements.

Please refer to the NMLS Resource Center for information
http://mortgage.nationwidelicensingsystem.org/Pages/Default.aspx. The resource center contains information about the registry, including the rules and upcoming training sessions, and provides contact information for the federal agencies concerning the SAFE Act requirements.

The Nebraska Department of Banking and Finance is issuing a warning to Nebraska residents considering investing in oil, gas, or alternative energy programs. According to Jack Herstein, Assistant Director for the Department’s Bureau of Securities, con artists frequently rely on today’s headlines in pitching their investment schemes. With recent headlines focusing on prices at the gas pump, Herstein warned Nebraska residents to be alert to investments in traditional and alternative energy projects. Such investments are highly risky and not appropriate for smaller investors.

Full Press Release

The Nebraska Department of Banking and Finance has issued a Cease and Desist Order against Complete Development International, Inc., 16009 Oak Plaza, Omaha, NE (“Complete Development”), its president, William “Bill” Tate, and its affiliates, officers, directors, agents and employees. The Order prohibits the entities and individuals named from offering or selling securities to Nebraska investors.

Full Press Release

Read Statement

The Nebraska Department of Banking and Finance is pleased to announce the successful implementation of mortgage loan originator licensing requirements as required by the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the “SAFE Act”) and by legislation enacted in 2009 and 2010 which made significant amendments to the Nebraska Residential Mortgage Licensing Act to bring Nebraska in compliance with the SAFE Act.

Full Press Release

The Nationwide Mortgage Licensing System & Registry (NMLS)—a mortgage licensing system operated by state financial regulators, including Nebraska—provides “NMLS Consumer Access”. NMLS Consumer Access is a fully searchable website that allows the public to view information concerning state-licensed mortgage companies, branch offices, and individuals currently licensed through NMLS.

Read Press Release
NMLS Consumer Access

The Nebraska Department of Banking and Finance is warning of an Internet finance company calling itself Hamilton Lending Group, which lists its address as 1248 “O” Street, Lincoln, Neb. The Department has verified that the company does not have an office at the address listed.

Read more information

The NDBF is issuing a warning of a scam targeting consumers who need to borrow money. A company calling itself Hillsboro Financial Group, which lists its address as 4060 Vinton Street, Suite 4, Omaha, NE, offers personal loans to consumers and requires up-front fees for “lender’s insurance” in advance of funding a loan. The Department has verified that the company does not have an office at the Omaha address listed.

Read More

The Nebraska Department of Banking and Finance is issuing a warning of two scams targeting consumers who use Internet-based companies to borrow money. Companies calling themselves Bennett Financial Group and Westmont Financial Group, which list their respective addresses as 10665 Bedford Street and 8401 West Dodge Road, both in Omaha, NE, offer personal loans to consumer and require up-front “collateral payments” in advance of funding a loan. The Department has verified that the companies do not have offices at the addresses listed.

Read News Release

The Nebraska Department of Banking and Finance is working with AARP in a new initiative designed to give individuals an opportunity to fight back by reporting questionable investment practices in their communities to the state securities regulator for investigation.

Read News Release

The Conference of State Bank Supervisors(CSBS) announced that the Nebraska Department of Banking and Finance has received its fourth certificate of accreditation from CSBS, certifying that the department maintains the highest standards and practices in state banking supervision. The CSBS Accreditation Program identifies banking departments that serve the citizens of their state by operating a capable and professional regulatory program.

Read News Release

Recent complaints to the Nebraska Department of Banking and Finance against Internet-based lending companies have prompted the Department to issue a warning to consumers about Internet lending scams. The Department is receiving a growing number of complaints on Internet-based cash advance companies, known as delayed deposit services in Nebraska and elsewhere as payday lenders, and Internet-based consumer loan companies.

Read News Release

NDBF today announced that starting on January 2, 2008, the Department will join several states across the country in participating in the Nationwide Mortgage Licensing System (NMLS) developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. The goal of the NMLS is to streamline and improve the licensing of mortgage lenders, brokers and servicers that hold licenses in multiple states.

View the news release

The Nebraska Department of Banking and Finance (NDBF) has issued an Order to Cease and Desist against SFS, Inc., doing business as One Click Cash, located at 52946 Highway 12, Suite 3, Niobrara, Nebraska, from operating as an Internet delayed deposit services business. According to Department records, One Click Cash does not have a license to operate a delayed deposit services business in the state. Delayed deposit services businesses are commonly referred to payday lenders.

View news release

Nebraska Department of Banking and Finance Director John Munn today issued this consumer alert urging homeowners with adjustable rate mortgages especially those with nontraditional mortgages to plan now for any scheduled recasts or resets of interest rates in the year ahead. Non traditional mortgage loans and many subprime loans frequently feature a recast (or reset) with a significant payment increase.

View the press release