The Department of Banking News Bulletin 

Bulletin # 2174
Week Ending October 21, 2005

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to John P. Burke, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to john.burke@ct.gov. Written comments will be considered only if they are received within ten days from the date of this bulletin.

BRANCH ACTIVITY
State Bank Activity

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days. Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180.

On November 17, 2005, a hearing will be held at the offices of the Connecticut Department of Banking, Room 50, 260 Constitution Plaza, Hartford, Connecticut, at 10:30 a.m. on the application of Richard R. Barredo, Mark A. Candido, Richard K. Ciardiello, Carl DaVia, Sallie A. DeMarsilis, CPA, Stephen J. DiCapua, Richard H. Fitzpatrick, Jr., Rev. Bonita Grubbs, Paul A. Gustafson, Joseph D. Lion, Brian P. McArdle, Raymond W. Palumbo, Pasquale Salvatore, Richard C. Simione, CPA, Richard Spero, and Lorenzo B. Wyatt to organize, pursuant to Section 36a-70 of the Connecticut General Statutes, Quinnipiac Bank & Trust Company, Hamden, Connecticut, for the purpose of doing business as a Connecticut bank.

On October 17, 2005, pursuant to Section 36a-628 of the Connecticut General Statutes, Business Lenders, LLC, 15 Lewis Street, Hartford, Connecticut, was licensed to operate a Business and Industrial Development Corporation.

On September 23, 2005, pursuant to Section 36a-581 of the Connecticut General Statutes, Cash-A-Check filed an application to operate a check cashing service general facility at 550 West Main Street, New Britain, Connecticut.

On September 21, 2005, pursuant to Section 36a-581 of the Connecticut General Statutes, X-Bankers, Inc. filed an application to operate a check cashing service general facility at 55 Wall Street, Norwalk, Connecticut.

On October 13, 2005, pursuant to Section 36a-598 of the Connecticut General Statutes, ADP Payroll Services, Inc., Roseland, New Jersey, filed an application to engage in the business of money transmission and issuing Connecticut payment instruments.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Commissioner Grants Temporary No-Action Relief
to Financial Professionals, Customers and Clients
Displaced Due to Hurricanes Katrina and Rita

On October 18, 2005, the Commissioner issued a No-Enforcement Action Determination Affecting Persons Displaced as a Result of Hurricane Katrina or Rita.  The determination affects customers or clients (“Pre-existing Customers and Clients”) with whom broker-dealers, investment advisers, agents and investment adviser agents (“Financial Professionals”) had a bona fide, pre-existing securities brokerage or investment advisory relationship on or before August 29, 2005 and while the Financial Professional was domiciled in its home state.  The No-Enforcement Action Determination, however, did not permit such Financial Professionals to solicit new customers or clients in Connecticut.  The No-Enforcement Action Determination is limited to activities occurring on or before December 31, 2005.

The No-Enforcement Action Determination concluded that, where Pre-existing Customers and Clients of Financial Professionals had been displaced to Connecticut due to Hurricane Katrina or Rita and Financial Professionals did business with those Pre-existing Customers and Clients temporarily located in this state, the Securities and Business Investments Division (the “Division”) would not take enforcement action for violations of the registration and notice filing requirements in Section 36b-6 of the Connecticut Uniform Securities Act if the Financial Professional satisfied four conditions:  1) The Financial Professional only effected securities transactions or rendered investment advisory services to Pre-existing Customers and Clients as defined in the No-Enforcement Action Determination; 2) the Financial Professional was registered or exempt from registration in the Pre-existing Customer or Client’s home state; 3) the Financial Professional was registered or exempt from registration with the SEC, a self-regulatory organization and the home state of the Financial Professional to the extent required by law; and 4) the Financial Professional disclosed to displaced Pre-existing Customers and Clients who were temporarily in this state that the Financial Professional was not registered under the Connecticut Uniform Securities Act.  In addition, the Commissioner determined that, where a Financial Professional had been temporarily displaced to Connecticut due to Hurricane Katrina or Rita, the Division would not take enforcement action for violations of the registration and notice filing requirements in Section 36b-6 of the Act if the Financial Professional were to effect securities transactions or render investment advisory services from Connecticut on behalf of Pre-existing Customers and Clients.  The no-action position was conditioned on 1) the Financial Professional providing written or electronic notice to the Division indicating that the Financial Professional had relocated to Connecticut and planned to transact securities business or render investment advisory service in reliance on the no-action determination; 2) the Financial Professional disclosed to Pre-existing Customers and Clients that it was temporarily domiciled in Connecticut and was not registered under the Connecticut Uniform Securities Act; 3) the Financial Professional was registered with the home state from which it was displaced or, in the case of an SEC-registered investment adviser, had filed a notice with the home state from which it was displaced; and 4) if a broker-dealer, the Financial Professional was registered with the SEC and a self-regulatory organization.

The full text of the No-Enforcement Action Determination can be found at our Web site.