Performance Details

Department of Commerce, Community, & Economic Development - Banking and Securities

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Mission

Protect consumers of financial services and promote safe and sound financial systems.

Core Services

• Charter, license and register financial institutions and products.
• Examine records of businesses and individuals to ensure compliance with federal and state law or regulation.
• Investigate consumer complaints and take appropriate enforcement action.
• Accept annual reports and election materials from Alaska Native Claims Settlement Act (ANCSA) corporations, file those materials so the public may access them, and respond timely to requests for investigation.

Mission Results

Core Services

A: Sound and competitive financial systems.  Details >

A1: Charter, license and register financial institutions and products.  Details > TARGET #1: Charter, license or register entities and persons in regulated financial services industries. A2: Examine records of businesses and individuals to ensure compliance with federal and state law or regulation.  Details > TARGET #1: Examine the operations of depository and other financial services businesses to ensure sound fiscal and consumer practices. A3: Investigate consumer complaints and take appropriate enforcement action.  Details > TARGET #1: Investigate and take action to enforce the law as necessary. A4: Accept annual reports and election materials from Alaska Native Claims Settlement Act (ANCSA) corporations, file those materials so the public may access them, and respond timely to requests for investigation.  Details > TARGET #1: ANCSA corporations and shareholders timely file annual reports and proxy solicitations. TARGET #2: Timeliness of division responses to ANCSA requests for investigation and inquiries.

Performance Detail

Target #1: Charter, license or register entities and persons in regulated financial services industries. Analysis of results and challenges: Continued rapid growth of the industries regulated challenges the division's ability to promptly complete statutorily-mandated licensing and examination functions. This continued growth also challenges the division’s ability to take timely enforcement actions, which protect Alaskan consumers and promote safe and sound financial systems and economic growth. The division requires a sufficient number of experienced examiners in order to manage significant changes in the industries’ corporate structures, financial technologies, expanded use of cryptocurrencies, and offshore management and support functions. The use of online registries, the STAR database, and other tools enables the division to streamline processing and reduce the regulatory burden on licensees and applicants.

Target #1: Examine the operations of depository and other financial services businesses to ensure sound fiscal and consumer practices. Analysis of results and challenges: The division examines depository institutions every 12 to 18 months, along with federal regulators. Generally, the division examines other industries of which it is the sole regulator between 18 months and three years apart, with the exception of mortgage lenders and money transmitters located outside Alaska. The division typically examines those entities in cooperation with regulators in other states in order to efficiently examine more licensees. The division may schedule compliance examinations at shorter intervals if an examinee exhibits risk factors such as poor past exam results or consumer complaints. The increase in the number and complexity of regulated entities consequently increases pressure on the division staff to timely schedule and complete examinations.

Target #1: Investigate and take action to enforce the law as necessary. Analysis of results and challenges: Fifty-one investigations were ongoing as of June 30, 2021 with 76 cases opened and 179 closed during FY2021. The division issued 8 final administrative orders and requested 22 license applications be withdrawn for not meeting licensing requirements.

Target #1: ANCSA corporations and shareholders timely file annual reports and proxy solicitations. Analysis of results and challenges: Approximately 2,400 ANCSA corporate and proxy solicitation filings were processed in FY2021 continuing the significant increase that started in FY2017. ANCSA corporations that have total assets exceeding $1,000,000 and 500 or more shareholders must file with the division annual reports and proxy solicitation materials made available to at least 30 of its Alaska resident shareholders. The division makes filed materials available for public access. In FY2021, the division responded to 159 direct requests for specific ANCSA filings. The high increase in number of candidate filings is likely due to increased shareholder awareness.

Target #2: Timeliness of division responses to ANCSA requests for investigation and inquiries. Timely Responses to ANCSA Requests for Investigation (within 10 days) Fiscal Year Complaints Received Timely Responses FY 2021 17 +88.89% 17 +88.89% FY 2020 9 -71.88% 9 -71.88% FY 2019 32 +14.29% 32 +14.29% FY 2018 28 -40.43% 28 -40.43% FY 2017 47 +261.54% 47 +261.54% FY 2016 13 -40.91% 13 -38.1% FY 2015 22 +175% 21 +162.5% FY 2014 8 -42.86% 8 -42.86% FY 2013 14 +16.67% 14 +16.67% FY 2012 12 +300% 12 +300% FY 2011 3 3 Analysis of results and challenges: By regulation, the division must review and respond to ANCSA shareholder requests for investigation within 10 business days.

Current as of November 22, 2021