Bulletin 3004 - September 17, 2021

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 3004 - Week Ending September 17, 2021

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 directed to Jorge L. Perez, Banking Commissioner . Written comments will be considered only if they are received within ten business days from the date of this bulletin.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Order

On September 13, 2021, the Commissioner entered into a Consent Order with Navient Solutions, LLC (NMLS # 212430) (“Navient”), Herndon, Virginia. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged Navient: (1) acted as a student loan servicer in this state from two unlicensed locations, in violation of Section 36a-847(a) of the Connecticut General Statutes; (2) failed to comply with the service standards set by the Commissioner requiring that personal information of borrowers is accurate and timely updated, in violation of Section 36a-850(10); and (3) failed to establish, enforce and maintain policies and procedures for supervising employees, agents and office operations that are reasonably designed to achieve compliance with applicable student loan servicing laws and regulations, in violation of Section 36a-850(9) of the Connecticut General Statutes. As part of the Consent Order, Navient agreed to undertake an audit of certain forbearances entered on private and commercial Federal Family Education Loan Program student loans of Connecticut borrowers, and paid $20,000 as a civil penalty and $5,400 for back licensing fees.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Commonwealth Equity Services, LLC d/b/a Commonwealth Financial Network (CRD No. 8032)

On September 17, 2021, the Banking Commissioner entered a Consent Order (No. CO-21-202023-S) with respect to Commonwealth Equity Services, LLC, a Connecticut-registered broker-dealer located at 29 Sawyer Road, Waltham, Massachusetts 02453-3483.

The Consent Order alleged that the firm violated Section 36b-31-6f(b) of the Regulations under the Connecticut Uniform Securities Act by failing to establish, enforce and maintain a system for supervising the activities of its agents that was reasonably designed to achieve regulatory compliance. More specifically, the Consent Order alleged that the firm should have taken greater measures to ensure that a since-deceased Connecticut client, whom the firm allegedly knew was suffering from mild cognitive decline, fully understood the ramifications of changing the beneficiaries on his brokerage account before the firm removed two of the client’s three children as beneficiaries.

The Consent Order fined the firm $20,000 and directed it to cease and desist from regulatory violations.

Dated: Tuesday, September 21, 2021

Jorge L. Perez
Banking Commissioner