Office of Financial Regulation. Alisa Goldberg Chief, Bureau of Registration Division of Securities

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1 Office of Financial Regulation Alisa Goldberg Chief, Bureau of Registration Division of Securities 1

2 History The Office of Financial Regulation (OFR) was created in 203 by section (3), Florida Statutes, from Cabinet reorganization legislation. The OFR is preceded by the former Comptroller s Office dating to the mid- 1800s. 2

3 Mission To protect the citizens of Florida, promote a safe and sound financial marketplace, and contribute to the growth of Florida s economy with smart, efficient and effective regulation of the financial services industry. 3

4 Leadership The OFR reports to the Financial Services Commission, which is comprised of Florida s Cabinet. Headed by a commissioner appointed by the Commission. Commission has final rule approval, but all regulatory decisions are vested with the OFR. 4

5 Budget The OFR is self-supporting Operating revenues come from the businesses and individuals it regulates Total Budget - $38.5 million 5

6 Employees Full-Time Employees: 362 Division of Financial Institutions: 114 Division of Consumer Finance: 97 Division of Securities: 96 Bureau of Financial Investigations: 39 Executive Direction: 16 6

7 Locations 7

8 Organization Three divisions and one bureau Programs oversee and regulate a wide range of financial enterprises and individuals State-chartered banks, credit unions Securities industry participants Mortgage loan originators, consumer finance companies, money transmitters, foreign currency exchangers, payday lenders 8

9 Division of Financial Institutions Licenses, examines and regulates statechartered financial institutions Ensures private funds deposited in Florida s state-chartered financial institutions are protected from potential loss due to failure or insolvency 9

10 Charters 10

11 Lower cost Advantages of State Charter Local knowledge of Florida markets More responsive to changes in local economies Direct access to regulators Ability to evaluate local conditions and needs without having to transfer responsibility to other authorities 11

12 Division of Consumer Finance Licenses and regulates non-depository financial service industries and individuals Collection Agencies Consumer Finance Loan Originators, Mortgage Brokers and Lenders Money Services Businesses Check cashers, money transmitters, payday lenders, foreign currency exchangers 12

13 Division of Consumer Finance Retail Installment Sales Motor vehicle retail installment sellers, retail installment sellers, sales finance companies, home improvement finance sellers Title Loan Lenders Conducts examinations and complaint investigations of licensed entities 13

14 Licensees Mortgage Loan Brokering, Origination & Servicing 1,939 Companies; 1,628 Branches; 17,693 Individuals Collection Agencies 1,527 Consumer Collectors; 174 Commercial Collectors Consumer Finance Companies 142 Companies at 349 Locations 14

15 Licensees Retail Installment Sales 5,654 Companies; 1,727 Branches Money Services Businesses 1,114 Companies with an additional 56,238 Authorized Locations and Branches Title Loan Lending 2 Companies Total 91,000 15

16 Bureau of Financial Investigations Criminal justice arm of the agency Conducts complex investigations of the financial services industry Participates in joint investigations with local, state and federal law enforcement agencies 16

17 Statistics Formal Investigations Closed: 91 Investigations Resulting in Enforcement Actions: 30 Criminal: 22, Civil: 1; Administrative: 13 Imprisonment Results 27 total defendants convicted; 24 received prison terms year of prison; 128 years of probation 17

18 Division of Securities Regulates the sale of securities and investment advice in, to or from Florida by firms (securities dealers, issuer dealers and investment advisers), branch offices and individuals affiliated with the firms to determine compliance with Florida law 18

19 Structure Bureau of Registration Processes and evaluates applications for firms and individuals seeking registration to conduct business in, to or from Florida Bureau of Enforcement Conducts examinations of registered securities dealers, investment advisers, branch offices and associated persons to determine compliance 19

20 Registrants Securities Dealers: 2,789 Investment Advisers: 5,182 Branches: 10,373 Agents: 296,271 Total: 314,615 20

21 Registrants What s the difference in Dealers, Investment Advisers and Agents? Dealers offer and sell securities Advisers provide advice regarding securities for a fee Agents act on behalf of, and under the supervision of, dealers and investment advisers 21

22 Registration Review Analysts closely review firm and agent applications to ensure that unqualified firms and individuals are not allowed to conduct business in, to or from Florida How does registration help the industry? Provides an extra level of review in the hiring process Protects the reputation of the industry 22 Keeps unqualified firms and agents out

23 Examination Oversight Examiners conduct examinations of and investigate customer complaints against registered entities How do examinations help the industry? Ensure compliance by individuals and firms Serve as a source of compliance information Enhance consumer confidence in the industry 23

24 Contact Information