The Department of Banking was created by Nebraska legislators to regulate state-chartered banks and other financial industries within the state. In 1939, regulation of state securities laws was also placed under the jurisdiction of the Department of Banking. Today, the Nebraska Department of Banking and Finance regulates and supervises various financial industries on behalf of the State of Nebraska and its residents.
Designated Securities Manuals
On September 22, 2016, the Department issued an order recognizing the OTCQX Best Market and OTCQB Venture Market as designated securities manuals for purposes of Section 8-1111(2)(a)(iv) of the Securities Act of Nebraska (“the manual exemption”). The Order continues to recognize manuals published by Mergent, Inc. as approved manuals for purposes of the manual exemption. As part of the Order, the portions of the Bureau of Securities Interpretative Opinion #8 addressing the manual exemption were rescinded, and the Department has issued a revised Interpretative Opinion # 8.
Read the Order
Read Interpretative Opinion #8
FEDERAL REGULATOR 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.
DASH for the STASH Winner
A Bellevue area woman won this year’s DASH for the STASH in Nebraska. Eighteen Nebraska libraries and other locations participated in the contest from March 15-May 15, 2016. Much like a scavenger hunt, players gather information about saving and investing by going to participating locations, reading investor education posters, and answering questions. The posters covered four key topics: finding financial advisers, avoiding fraud, understanding investment fees, and building a nest egg. The winner was randomly selected from those players who correctly answered the questions and awarded $1,000 to open or add to an Individual Retirement Account (IRA).
Securities Act of Nebraska Form U-1: New Filing Requirement
Effective July 1, 2016, the Nebraska Department of Banking and Finance (NDBF) will require issuers filing pursuant to registration by coordination under Section 8-1106 of the Securities Act of Nebraska to file a separate Form U-1/Uniform Application to Register Securities for each distinctive share class to be offered. NDBF will receipt each share class under a separate and distinct state file number, applying the requisite fee to each filing accordingly. NDBF will no longer allow an issuer to reallocate fees between share classes of the offering after the initial filing is received and receipted.
Securities Rules Hearing
Securities Rules Notice is hereby given that the Nebraska Department of Banking and Finance will hold a rulemaking hearing on August 10, 2016, commencing at 9:30 a.m., at the offices of the Department of Banking and Finance, 1526 K Street, Suite 300, Lincoln, Nebraska 68508.
Proposed Title 48 Securities Rules
Fiscal Impact Statement
Current Title 48 Securities Rules
NDBF Takes Emergency Action Against Omaha Investment Adviser
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
Investor Education Forum
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Learn to make informed investment decisions and avoid becoming a victim of fraud.
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Funded in part by a grant from the Investor Protection Trust, www.investorprotection.org.
Securities Rules Effective
Effective May 11, 2016, the Department of Banking and Finance adopted new rules under the Securities Act of Nebraska (Act) relating to crowdfunding, investment advisers, and integration of offerings. An existing rule containing general information under the Act was updated at the same time.
Administrative Code - Title 48 Securities Rules
Attorney General and Director of Banking Announce Settlement with Western Sky
Nebraska Attorney General Doug Peterson and Director of the Nebraska Department of Banking and Finance Mark Quandahl announced May 5, 2016, a settlement with CashCall, Inc., Delbert Services Corporation, WS Funding, LLC, and their owner J. Paul Reddam, and Western Sky Financial, LLC, and its owner Martin A. Webb, for unlicensed internet lending. Click here to be directed to the May 5th press release.
Financial Institution Division Statements of Policies
The Nebraska Department of Banking and Finance (“Department”) has updated all of its Financial Institution Division Statements of Policies (“SOPs”). The revised SOPs and one newly issued SOP are intended to clearly communicate current banking law. None of the SOPs reflect a change in the Department’s understanding of laws and regulations that influence state-chartered banks in Nebraska today.
All of the SOPs are available by clicking Statements of Policy.
Executive Officer Application Process
The Department has streamlined the Executive Officer licensing application process by reducing the comprehensive application form by two pages. In addition, the application process no longer requires the bank to attest to the applicant’s personal financial statement. Bank officers, entering employment as a Nebraska banker, must apply for their first Executive Officer License using the comprehensive form, found here. An experienced Executive Officer, electing to change employment, is not required to complete the comprehensive form. An Executive Officer changing jobs may complete a 3 page application, found here.
Bank Forms Page
Designation of Garnishment Summons Service Location
Legislation was enacted in 2015 for the designation of a location for the service of a garnishment summons on a financial institution receiving deposits within Nebraska. To implement the provisions of LB 195, the Department has adopted the form, “Service of Garnishment Summons Designation Form.”
New “Garnishment” Page
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.
Read full press release
Derivative Transactions Order Revised
The Nebraska Department of Banking and Finance issued an Order on October 20, 2015, which modifies two of the three Appendices to an Order of the Department, effective January 21, 2013. The 2013 Order established standards for certain credit exposures arising from the use of derivatives and securities financing transactions, as required by Nebraska law and the Dodd-Frank Act. The Department has also updated its Frequently Asked Questions (FAQ) to reflect the modifications.
Order of Modifications (2015)
Intrastate crowdfunding is now available in Nebraska. The Department has adopted Form NCF for issuers who wish to conduct a crowdfunding offering, and form NPO for entities which to register as a portal operator.
Click here for our new Crowdfunding page.
Are you an informed investor?
Savvy consumers know it is important to compare prices on similar products to get the best value for their money. Wouldn’t it be nice if the same were true when shopping for a broker-dealer firm to handle your investments?
Read more about understanding Broker-Dealer Fees
Annual Deposit Limitation Calculation
The deposit limitation as of June 30, 2016, is $13,284,854,660. Please click the link on the bottom right of this web page, or here, for additional information.
Money Transmitter Permissible Investments
The Nebraska Department of Banking and Finance has issued an Order expanding the types of permissible investments for money transmitters. Licensees are able to include ACH Receivables, Credit Card Receivables, and Debit Card Receivables as permissible investments, subject to the conditions contained in the Order.
Delayed Deposit Services Interpretative Opinion No. 8
The Nebraska Department of Banking and Finance has issued an Interpretative Opinion regarding the use of the terms “loan” and “payday loan” by licensees under the Delayed Deposit Services Licensing Act.
Frequently Asked Questions regarding Delayed Deposit Services have been updated.
Residential Mortgage Licensing Act Forms Adopted
The Department has adopted forms related to nonprofit organizations offering services in areas regulated by the Residential Mortgage Licensing Act. The forms are the Application for Nonprofit Organization Certificate of Exemption, and the Annual Attestation for a Nonprofit Organization Certificate of Exemption. The Department has also issued a checklist to assist applicants in gathering appropriate information for the certificate process. The forms are issued under the authority of Section 45-703.01 of the Residential Mortgage Licensing Act.
Interpretative Opinion No. 26: Use of Certifications and Designations in Advertising by Investment Adviser Representatives and Broker-Dealer Agents
The Nebraska Department of Banking and Finance, Bureau of Securities issues an interpretative opinion regarding the use of designations in advertising by investment adviser representatives and broker-dealer agents. The Department periodically reviews the list of designations.
Read Interpretative Opinion & Approved Designations (11-09-2016)
To receive email notification when updates are made to the list of designations, please click here.
NDBF News Releases (Current - 2014)
News Release Archives (2007 - 2013)
Nebraska Department of Banking & Finance
1526 K Street, Suite 300
Lincoln, NE 68508-2732
P.O. Box 95006
Lincoln, NE 68509-5006
Financial Institutions Division:(402)471-2171
Bureau of Securities:(402)471-3445
Governor of Nebraska
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