Regulatory Alerts2025-01-01
Kansas Technology-Enabled Fiduciary Financial Institutions Act (TEFFI Act)
The Kansas State Banking Board and Legislature enacted the Technology-Enabled Fiduciary Financial Institutions Act to create a specialized charter for entities authorized to provide custodial services and finance alternative asset trusts. Applicants must secure regulatory approval by demonstrating a qualified commercial real estate investment in designated economic growth zones, committing to annual charitable distributions, and paying a substantial initial applicable distribution split between the state commerce department and qualified charities. The statute establishes governance standards, examination fee structures, trust advisor immunities, and a pilot program pathway, while exempting existing Kansas-chartered banks and trust companies from specific capital and board requirements if they operate separate fidfin departments.