§§ 1-5. Repealed. 1999, No. 153 (Adj. Sess.), § 27.
§ 6. Repealed. 1979, No. 85 (Adj. Sess.).
§ 10. Declaration of policy
It is declared to be the policy of the State of Vermont that:
(1) the business of organizations that offer financial services and products shall be
supervised by the Commissioner in a manner to ensure the solvency, liquidity, stability,
and efficiency of all such organizations; to ensure reasonable and orderly competition,
thereby encouraging the development, expansion, and availability of financial services
and products advantageous to the public welfare; and to maintain close cooperation
with other supervisory authorities; and
(2) all such organizations shall be supervised in such a way as to protect consumers against
unfair and unconscionable practices and to provide consumer education. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001.)
§ 11. Department
(a) General. The Department of Financial Regulation created by 3 V.S.A. § 212 shall have jurisdiction over and shall supervise:
(1) Financial institutions, credit unions, licensed lenders, mortgage brokers, insurance
companies, insurance agents, broker-dealers, investment advisors, and other similar
persons subject to the provisions of this title and 9 V.S.A. chapters 59, 61, and 150.
(2) The administration of health care as provided in 18 V.S.A. chapter 221.
(b) Conflicts of interest.
(1) Neither the Commissioner nor any employee of the Department shall, during his or her
term of office or while employed by the Department, be an officer, director, organizer,
employee of, or attorney for any institution subject to supervision or regulation
by the Department.
(2) The Commissioner and employees of the Department shall not, during their terms of
office, receive directly or indirectly any payment or gratuity from any institution
subject to supervision or regulation by the Department or be engaged in the negotiation
of loans for others with any such institution. The prohibitions contained in this
subdivision shall not be construed as prohibiting a person from being a depositor,
equity interest owner, or member in any financial institution or credit union or an
insurance policyholder or equity interest owner on the same terms as are available
to the public generally.
(3) If the Commissioner, or any employee of the Department or the spouse of any of them
or the son or daughter of any of them residing at their respective homes obtains a
loan from or holds an equity interest in any financial institution or credit union
subject to supervision or regulation by the Department, the fact of the loan or of
the holding, together with the appropriate terms and conditions, shall be disclosed
immediately to the Commissioner in writing by the person obtaining the loan or holding.
(4) A record of the indebtedness or holding described in subdivision (3) of this subsection
shall be kept on file in the Department and shall be open to inspection by the public.
(5) The Commissioner shall investigate the loan or equity interest to ensure that no preferential
treatment has been given the Department employee in the process of granting the loan
or issuing the interest and that the loan or interest will not compromise the employee’s
effectiveness in carrying out his or her departmental duties. Where the loan has been
obtained by or where the interest is held by the Commissioner, the investigation shall
be conducted by the State Treasurer.
(c) Retention of documents. The Commissioner shall keep on file for a reasonable period of time such instruments,
papers, and documents required by law to be filed with the Commissioner. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001; amended 2007, No. 49, § 18, eff. July 1, 2006; 2011, No. 78 (Adj. Sess.), §§ 2, 3, eff. April 2, 2012; 2013, No. 79, § 45.)
§ 12. Commissioner
The Department shall be administered by a Commissioner of Financial Regulation who
shall be appointed by the Governor biennially, in the month of February, with the
advice and consent of the Senate. Commissioner, as used in this title, shall mean
the Commissioner of Financial Regulation. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001; amended 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
§ 13. Powers and penalties
(a) In addition to any other penalties, and in order to enforce this title, 9 V.S.A. chapters 131 and 150, Title 9A, and 18 V.S.A. chapter 221, the Commissioner may issue subpoenas, examine persons, administer oaths, and require
production of papers and records. Any subpoena or notice to produce may be served
by registered or certified mail or in person by an agent of the Commissioner. Service
by registered or certified mail shall be effective three business days after mailing.
Any subpoena or notice to produce shall provide at least six business days’ time from
service within which to comply, except that the Commissioner may shorten the time
for compliance for good cause shown. Any subpoena or notice to produce sent by registered
or certified mail, postage prepaid, shall constitute service on the person to whom
it is addressed. Each witness who appears before the Commissioner under subpoena shall
receive a fee and mileage as provided for witnesses in civil cases in Superior Courts;
provided, however, any person subject to regulation under this title shall not be
eligible to receive fees or mileage under this section.
(b) A person who fails or refuses to appear, to testify, or to produce papers or records
for examination before the Commissioner, upon properly being ordered to do so, may
be assessed an administrative penalty by the Commissioner of Financial Regulation
of not more than $2,000.00 for each day of noncompliance and proceeded against as
provided in the Administrative Procedure Act, and that person’s authority to do business
may be suspended for not more than six months.
(c) If an appeal or other petition for judicial review of a final order is not filed in
connection with an order of the Commissioner under this title, or 18 V.S.A. chapter 221, the Commissioner may file a certified copy of the final order with the clerk of
a court of competent jurisdiction. The order so filed has the same effect as a judgment
of the court and may be recorded, enforced, or satisfied in the same manner as a judgment
of the court.
(d) In addition to any other penalties or powers, the Commissioner may order a person
to make restitution or provide disgorgement of any sums shown to have been obtained
in violation of provisions of this title and 18 V.S.A. chapter 221, plus interest at the legal rate. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001; amended 2007, No. 49, § 19; eff. July 1, 2006; 2009, No. 42, § 4; 2011, No. 78 (Adj. Sess.), § 4, eff. April 2, 2012.)
§ 14. Repealed. 2009, No. 33, § 83(d).
§ 15. Rules, orders, and administrative interpretations
(a) In addition to other powers conferred by this title and 18 V.S.A. chapter 221, the Commissioner may adopt rules and issue orders as shall be authorized by or necessary
to the administration of this title and of 18 V.S.A. chapter 221, and to carry out the purposes of such titles.
(b) The Commissioner may, whether or not requested by any person, issue written advisory
interpretations, advisory opinions, non-objection letters, and no action letters under
this title and regulations issued under it, including interpretations of the applicability
of any provision of this title and regulations issued under it. Such interpretations
shall be presumed to be correct unless found to be clearly erroneous by a court of
competent jurisdiction. The Commissioner may make public all or a portion of an advisory
interpretation.
(c) The Commissioner may waive the requirements of 15 V.S.A. § 795(b) as the Commissioner deems necessary to permit the Department to participate in any
national licensing or registration systems with respect to any person or entity subject
to the jurisdiction of the Commissioner under this title, Title 9, or 18 V.S.A. chapter 221.
(d) Upon written request by the Office of Child Support and after notice and opportunity
for hearing to the licensee as required under any applicable provision of law, the
Commissioner may revoke or suspend any license or other authority to conduct a trade
or business (including a license to practice a profession) issued to any person under
this title, 9 V.S.A. chapter 150, and 18 V.S.A. chapter 221, if the Commissioner finds that the applicant or licensee is subject to a child support
order and is not in good standing with respect to that order or is not in full compliance
with a plan to pay any and all child support payable under a support order as of the
date the application is filed or as of the date of the commencement of revocation
proceedings, as applicable. For purposes of such findings, the written representation
to that effect by the Office of Child Support to the Commissioner shall constitute
prima facie evidence. The Office of Child Support shall have the right to intervene
in any hearing conducted with respect to such license revocation or suspension. Any
findings made by the Commissioner based solely upon the written representation with
respect to that license revocation or suspension shall be made only for the purposes
of that proceeding and shall not be relevant to or introduced in any other proceeding
at law, except for any appeal from that license revocation or suspension. Any license
or certificate of authority suspended or revoked under this section shall not be reissued
or renewed until the Department receives a certificate issued by the Office of Child
Support that the licensee is in good standing with respect to a child support order
or is in full compliance with a plan to pay any and all child support payable under
a support order. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001; amended 2009, No. 42, § 33a; 2013, No. 73, § 58, eff. June 5, 2013; 2015, No. 63, § 3, eff. June 17, 2015; 2019, No. 20, § 106.)
§ 15a. Repealed.
(Added 2019, No. 57, § 1; amended 2021, No. 25, § 17, eff. May 12, 2021.)
§ 16. Judicial review
Any person aggrieved and directly affected by an order of the Commissioner may appeal
to the Supreme Court of Vermont, except as otherwise expressly provided in this title
or in 9 V.S.A. chapters 131 and 150. The filing of an appeal for review or injunctive
relief shall not stay enforcement of an order, but the Court may order a stay on such
terms as it deems proper. The Court may affirm the order of the Commissioner, may
direct him or her to take the action withheld, or may reverse or modify the order
if it:
(1) was issued pursuant to unconstitutional statutory provisions;
(2) was in excess of statutory authority;
(3) was issued on unlawful procedure; or
(4) is not supported by substantial evidence in the record. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001; amended 2007, No. 49, § 20; eff. July 1, 2006.)
§ 17. Liability for acts
A person serving in any official capacity under this title, 9 V.S.A. chapter 131 or
150, or 18 V.S.A. chapter 221, including the Commissioner and any officer, employee,
or agent of the Department, shall not be liable in any civil action for damages for
any act done or omitted in good faith in performing the functions of his or her office.
No person may be subjected to any civil or criminal liability for any act or omission
to act done in good faith in reliance on a subsisting order, regulation, or rule of
the Commissioner, notwithstanding a subsequent decision by a court invalidating the
order, regulation, or rule. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001; amended 2007, No. 49, § 21; eff. July 1, 2006.)
§ 18. Charges for examinations, applications, reviews, and investigations
(a) Every person subject to regulation by the Department shall pay the Department the
reasonable costs of any examination, review, or investigation that is conducted or
caused to be conducted by the Department of such person, or of any application or
filing made by such person, or of any examination, review, or investigation of any
order, decision, or certificate issued by the Commissioner, at a rate to be determined
by the Commissioner. The Department may retain experts or other persons who are independently
practicing their professions to assist in such examination, review, or investigation.
The Department shall be reimbursed for all reasonable costs and expenses, including
the reasonable costs and expenses of such persons retained by the Department, by the
person examined, submitting the application or filing reviewed, investigated, or subject
to or under the jurisdiction of an order, decision, or certificate issued by the Commissioner
under this title or under Title 18. An examination, review, or investigation subject
to this section shall include an examination, review, or investigation of any application,
information, rate filing, or form filing submitted, or any order, decision, or certificate
issued under this title or under Title 18. In unusual circumstances, the Commissioner
may waive reimbursement for the costs and expenses of any review in the interests
of justice. Except as set forth in subsection (b) of this section, those institutions
subject to assessment or fees for services provided under section 19 of this title shall not be billed for a regular examination performed under subsection 11501(a) or 30601(a) of this title or for services for which such fees under subsection 19(a) of this title have been paid.
(b) Merchant banks established under section 12603 of this title, uninsured banks established under section 12604 of this title, and independent trust companies subject to assessment under subdivision 2405(f)(1) of this title shall pay the Department the costs and expenses of all examinations, including regular
and special or expanded scope examinations.
(c) The authority granted to the Commissioner by this section is in addition to any other
authority granted to the Commissioner by law.
(d) The Commissioner shall bill costs incurred by the Department in connection with any
examination, review, or investigation conducted or caused to be conducted by the Department
to the EB-5 projects subject to regulatory oversight under 10 V.S.A. chapter 3. It is the intent of the General Assembly that the costs of regulation of EB-5 projects
be borne by project developers and not by the State General Fund or special funds. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001; amended 2003, No. 53, § 21, eff. June 4, 2003; 2005, No. 16, § 2, eff. July 1, 2005; 2011, No. 21, § 6; 2011, No. 78 (Adj. Sess.), § 5, eff. April 2, 2012; 2013, No. 29, § 1; 2015, No. 149 (Adj. Sess.), § 34e.)
§ 19. Fees and departmental expenses
(a) The Commissioner shall charge each financial institution or financial institution
applicant for Department services rendered. Charges for Department services shall
be billed as follows:
(1) New financial institution application or new independent trust company application,
$5,000.00.
(2) Interim reorganization application, $2,000.00.
(3) Merger, change in control, or other reorganization, share exchange, consolidation,
or acquisition, $2,000.00.
(4) Conversion of a charter, $2,500.00.
(5) Establishment of a branch in the State, $500.00.
(6) Establishment of a remote service unit, $250.00. Where more than one remote service
unit performing identical services on single premises are petitioned at the same time,
the total charge shall be $250.00. This fee shall not apply if the remote service
unit is placed at an existing branch.
(7) Relocation of main office, branch, or remote service unit, $250.00.
(8) For trust powers subsequent to the granting of the authority as financial institution,
$2,000.00.
(9) Sale of branch, $500.00.
(10) Sale, lease, or exchange of all an institution’s assets, $5,000.00.
(11) Voluntary dissolution or liquidation of an institution, $5,000.00.
(12) Establishment of a special purpose financial institution, $5,000.00.
(13) Establishment of a temporary agency, $150.00.
(14) Activity at a school, $250.00.
(15) Establishment of a loan production office or engaging in loan production activity
in the State, $750.00.
(16) Permit a foreign exchange activity, $500.00.
(17) Purchase or establish a subsidiary or service corporation, $2,500.00.
(18) Certificate (good standing), $100.00.
(19) Establish a development credit corporation, $1,000.00.
(20) Permission to use “bank” in name, $100.00.
(21) Advisory interpretations, advisory opinions, non-objection letters, and no action
letters, $250.00, plus expenses.
(22) Increase or reduction in permanent capital, $250.00.
(23) New credit union application, new credit union service organization application, or
new corporate credit union application, $2,500.00.
(24) Extension of a certificate of general good or extension of a certificate of approval,
$50.00.
(25) Contract with another financial institution as agent, $500.00.
(26) Any other corporate organizational changes not covered in this subsection, $250.00
plus expenses. No petition or application shall be considered by the Commissioner
until payment for the enumerated charge has been received.
(b) Merchant banks established under section 12603 of this title, uninsured banks established under section 12604 of this title, and independent trust companies assessed as provided in subdivision 2405(f)(1) of this title shall be billed for all examinations. All other institutions subject to assessment
under subsection (d) of this section shall not be billed for regular examinations.
(c) Each person, except as otherwise provided in subsection (d) of this section, within
30 days of notification, shall pay the Department fees as prescribed by section 18 of this title, which fees shall be billed when they are incurred.
(d) The Commissioner shall apportion the expenses allowed under the title “Department
of Financial Regulation—Banking” in the annual appropriation bill among the several
financial institutions, credit unions, and independent trust companies directly regulated
under this title, including the operations in Vermont of any such entity organized
in another jurisdiction. Annually, on or before November 1, the Commissioner shall
notify the institutions of the proposed assessment. The assessment shall consider
surpluses or shortfalls from prior year assessments, increases, and decreases in entity
deposits and assets under management, and any other factor that may affect the Banking
Division’s expenditures and revenues. The Commissioner shall send each entity a bill
for such entity’s portion of the assessment on or before March 1 of each year, which
bill shall be paid into the State Treasury on or before April 1.
(1) Financial institutions and credit unions that accept deposits will be assessed based
on the amount of their deposits held in this State on the preceding June 30.
(2) In the case of merchant banks established under section 12603 of this title, the assessment shall be based on assets in this State on the preceding June 30.
(3) In the case of nondepository trust companies established under section 12602 of this title, the assessment will be based on assets under management in this State on the preceding
June 30.
(4) In the case of an uninsured bank established under section 12604 of this title:
(A) an uninsured bank whose primary activity is transactional shall pay to the Department
an annual assessment equal to $0.0001 per dollar volume of activity performed for
the most recent year ended December 31, which assessment shall not be greater than
$50,000.00; and
(B) an uninsured bank whose primary activity is accepting uninsured deposits shall be
assessed based on the amount of deposits on the preceding June 30.
(5) No financial institution, credit union, nondepository trust company, merchant bank,
or uninsured bank subject to assessment under subdivision (1), (2), (3), or (4) of
this subsection may pay less than $2,000.00 per annual assessment.
(6) Loan production offices or persons engaged in an approved loan production activity
authorized under prior law that do not pay an assessment under subdivision (1), (2),
(3), or (4) of this subsection shall pay an annual fee of $1,200.00.
(7) In the case of independent trust companies organized under chapter 77 of this title:
(A) an independent trust company whose primary activity in this State is transactional
shall pay an assessment calculated under subdivision 2405(f)(1) of this title; and
(B) an independent trust company whose primary activity in this State is asset management
shall pay an assessment based on assets under management, provided the annual assessment
shall not be less than $2,000.00.
(e) If any entity fails to pay fees or expenses as provided in this section or section 18 of this title, within 45 days after notice from the Department of the amount due, the Commissioner
may issue an execution against the property of the delinquent for an amount equal
to 150 percent of the amount of the overdue payment. Such execution shall be enforced
as an execution of a court.
(f) There is hereby created a fund to be known as the Financial Institution Supervision
Fund for the purpose of providing the financial means for the Commissioner of Financial
Regulation to administer Parts 2, 4, and 5 of this title, 9 V.S.A. Parts 1 and 3,
and Title 9A. All fees and assessments received by the Department pursuant to such
administration shall be deposited in this Fund.
(g) All payments from the Banking Supervision Fund for the maintenance of staff and associated
expenses, including contractual services as necessary, shall be disbursed from the
State Treasury only upon warrants issued by the Commissioner of Finance and Management
after receipt of proper documentation regarding services rendered and expenses incurred.
(h) Any entity, subject to the assessment under subsection (d) of this section, that converts
or relinquishes its State charter or closes all of its branches or offices in this
State will be responsible for a pro rata share of the assessment made under subsection
(d) of this section for the final period it was authorized to conduct business under
this title. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001; amended 1999, No. 155 (Adj. Sess.), § 7, eff. Jan. 1, 2001; 2005, No. 72, § 1; 2009, No. 42, § 1; 2011, No. 21, §§ 7-9; 2011, No. 78 (Adj. Sess.), §§ 2, 6-8, eff. April 2, 2012; 2013, No. 29, § 2, eff. May 13, 2013; 2015, No. 63, § 4, eff. June 17, 2015; 2019, No. 20, § 107.)
§ 20. Uniform Commercial Code
(a) All commercial transactions of financial institutions doing business in this State
shall be governed by and conducted in accordance with Title 9A.
(b) In any conflict between the provisions of Title 9A and any other provisions of law,
including organizational documents of financial institutions, dealing with the same
subject matter, Title 9A shall prevail unless otherwise specifically provided by law. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001.)
§ 21. Applicability of laws governing business organizations
Depending on the permitted type of organizational form, the provisions of Titles 11,
11A, and 11B, relating to corporations, limited liability companies, limited liability
partnerships, limited partnerships, partnerships, mutual and cooperative organizations,
and other organizations, shall apply to business organizations regulated under this
title. In the case of a conflict and to the extent that such provisions may be inconsistent
with the provisions of Titles 11, 11A, and 11B, the provisions of this title shall
control. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001.)
§ 22. Confidentiality and information-sharing agreements
(a) Except as expressly provided in subsection (b) of this section, all documents, material,
or other information reported to, or developed or maintained by, the Commissioner
may be used by the Commissioner in the furtherance of legal or regulatory proceedings
brought as a part of the Commissioner’s official duties.
(b) In order to assist in the performance of the Commissioner’s duties, the Commissioner:
(1) may share documents, materials, or other information, including confidential and privileged
documents, materials, or other information, with other state, federal, or international
agencies; the National Association of Insurance Commissioners; the North American
Securities Administrators Association; the International Association of Insurance
Supervisors; the Conference of State Bank Supervisors; the National Association of
State Credit Union Supervisors; self-regulatory organizations organized under 15 U.S.C. §§ 78f, 78o-3, and 78q-1; other self-regulatory organizations and their affiliates or subsidiaries; and with
state, federal, and international law enforcement authorities, provided that the recipient
agrees to maintain the confidentiality and privileged status of the document, material,
or other information;
(2) may receive documents, materials, or information, including otherwise confidential
and privileged documents, materials, or information, from other state, federal, and
international agencies; the National Association of Insurance Commissioners; the North
American Securities Administrators Association; the International Association of Insurance
Supervisors; the Conference of State Bank Supervisors; the National Association of
State Credit Union Supervisors; self-regulatory organizations organized under 15 U.S.C. §§ 78f, 78o-3, and 78q-1; other self-regulatory organizations and their affiliates or subsidiaries; and from
state, federal, and international law enforcement authorities; and shall maintain
as confidential or privileged any document, material, or information received with
notice or the understanding that it is confidential or privileged under the laws of
the jurisdiction that is the source of the document, material, or information;
(3) may enter into agreements governing sharing and use of information consistent with
this section; and
(4) shall determine, prior to sharing information about an individual pursuant to subdivision
(1) of this subsection, that sharing the information will substantially further the
performance of the regulatory or law enforcement duties of the recipient.
(c) Any information furnished pursuant to this section by or to the Commissioner that
has been designated confidential by the furnisher of the information shall not be
subject to public inspection under 1 V.S.A. chapter 5, shall not be subject to subpoena, and shall not be subject to discovery or admissible
in evidence in any private civil action.
(d) Neither the Commissioner nor any person who received documents, material, or information
while acting under the authority of the Commissioner shall be permitted or required
to testify in any private civil action concerning any confidential documents, material,
or information.
(e) No waiver of an existing privilege or claim of confidentiality in the documents, materials,
or information shall occur as a result of disclosure or sharing as authorized under
this section.
(f) The provisions of this section shall apply to information relating to persons that
engage in activities that are financial in nature, or incidental or complementary
to such financial activity within the meaning of 12 U.S.C. § 1843(k) and to credit unions. This section shall also apply to captives formed or licensed
under the provisions of chapter 141 or 142 of this title. (Added 2001, No. 71, § 1, eff. June 16, 2001; amended 2009, No. 42, § 5, eff. July 1, 2009; 2017, No. 1, § 1, eff. Feb. 23, 2017; 2023, No. 110 (Adj. Sess.), § 7, eff. July 1, 2024.)
§ 23. Confidentiality of investigation and examination reports
(a) This section shall apply to all persons licensed, authorized, or registered, or required
to be licensed, authorized, or registered by the Commissioner.
(b) Regardless of source, all records of investigations, including information pertaining
to a complaint by or for a consumer, and all records and reports of examinations by
the Commissioner, whether in the possession of a supervisory agency or another person,
shall be confidential and privileged, shall not be made public, and shall not be subject
to discovery or introduction into evidence in any private civil action. No person
who participated on behalf of the Commissioner in an investigation or examination
shall be permitted or required to testify in any such civil action as to any findings,
recommendations, opinions, results, or other actions relating to the investigation
or examination.
(c) The Commissioner may, in the Commissioner’s discretion, disclose or publish or authorize
the disclosure or publication of any such record or report or any part thereof in
the furtherance of legal or regulatory proceedings brought as a part of the Commissioner’s
official duties. The Commissioner may, in the Commissioner’s discretion, disclose
or publish or authorize the disclosure or publication of any such record or report
or any part thereof, to civil or criminal law enforcement authorities for use in the
exercise of such authority’s duties, in such manner as the Commissioner may deem proper.
(d) For the purposes of this section, records of investigations and records and reports
of examinations shall include joint examinations by the Commissioner and any other
supervisory agency. Records of investigations and reports of examinations shall also
include records of examinations and investigations conducted by:
(1) any agency with supervisory jurisdiction over the person; and
(2) any agency of any foreign government with supervisory jurisdiction over any person
subject to the jurisdiction of the Department, when such records are considered confidential
by such agency or foreign government and the records are in the possession of the
Commissioner. (Added 2001, No. 55, § 3, eff. June 12, 2001; amended 2015, No. 63, § 5, eff. June 17, 2015; 2021, No. 25, § 10, eff. May 12, 2021; 2023, No. 32, § 7a, eff. July 1, 2023; 2025, No. 23, § 1, eff. July 1, 2025.)
§ 24. Senior investor protection
(a) The Commissioner may, in addition to other powers conferred on the Commissioner by
law, adopt rules and issue orders necessary to protect senior investors from being
misled by false or misleading certifications, licenses, professional designations,
or other credentials that imply or indicate a special level of knowledge with regard
to senior investors or their needs in the sale of securities or insurance, or both,
in the providing of investment advice.
(b) To implement the protections described in subsection (a) of this section, the Commissioner
may:
(1) establish standards for senior-specific certifications, licenses, professional designations,
and other credentials;
(2) develop initiatives to investigate and take action against fraudulent, misleading,
dishonest, or unethical marketing practices directed toward seniors;
(3) develop educational materials and training aimed at reducing such marketing practices;
and
(4) accept grants from government or private entities to fund the activities set forth
in this section.
(c) Any rules adopted or orders issued by the Commissioner under this section shall conform
to the extent practicable to the North American Securities Administrators Association
Model Rule on the Use of Senior-Specific Certifications and Professional Designation,
as amended, and the National Association of Insurance Commissioners Model Regulation
on the Use of Senior-Specific Certifications and Professional Designations in the
Sale of Life Insurance and Annuities, as amended.
(d)(1) A violation of a rule adopted or orders issued under this section with respect to
the business of insurance shall constitute an unfair or deceptive act or practice
in the business of insurance, and the Commissioner may enforce such violations pursuant
to the Commissioner’s authority conferred by the Insurance Trade Practices Act, chapter
129 of this title, and pursuant to any other authority conferred upon the Commissioner
by law.
(2) A violation of a rule adopted or order issued under this section with respect to the
business of securities and investment advice shall constitute a violation of 9 V.S.A. § 5412(d)(13), and the Commissioner may enforce such violations pursuant to the Commissioner’s
authority conferred by the Vermont Uniform Securities Act, 9 V.S.A. chapter 150, and pursuant to any other authority conferred upon the Commissioner.
(e) The Commissioner, in addition to other powers conferred on the Commissioner by law,
may increase the amount of an administrative penalty by not more than $5,000.00 per
violation for violations involving a person who is a vulnerable adult as defined in
33 V.S.A. § 6902(34). (Added 2009, No. 53, § 3; amended 2017, No. 80, § 2.)