The TEFFI Act is a first-of-its-kind regulatory framework enabling companies to provide liquidity for alternative assets. Brad Heppner explains how it works and the economic benefits local Kansas communities can expect from Beneficient’s operations and wider industry adoption.
New Beneficient Video Explores TEFFI Act’s Positive Impact on Kansans
A new video on the Beneficient YouTube channel explores the implications of the TEFFI Act, a 2021 law in Kansas that makes Kansas the center for a brand-new industry.
The new law enables the creation of regulated trust companies that provide alternative asset financing and custodial asset management services now known as TEFFIs, Technology-Enabled Fiduciary Financial Institutions. A central component of the TEFFI Act is a built-in mechanism for community reinvestments. A 2.5% financing fee paid by TEFFI customers is earmarked for Kansas-based charitable foundations and rural economic growth initiatives.
This, coupled with capital investment from TEFFIs that establish operations in the state, provide real economic benefit for Kansans at no cost to Kansas or Kansans.
“That means no tax rebates or inducements are offered to TEFFIs to locate in Kansas,” said Brad Heppner, CEO of Beneficient (BEN). “There are no tax incentives, if TEFFI customers do not contribute toward rural community reinvestment and our Kansas First initiatives. And no tax breaks are offered to any customers or companies that are involved with TEFFIs.”
Beneficient chose Hesston, Kansas as the community to which it will direct funding from its TEFFI operations.
“My hometown of Hesston holds a very special place in my heart,” Brad said. “Now, because of the TEFFI Act, Kansas is opening the door to a new industry while ensuring benefits flow directly to small towns across the state, just like Hesston.”
The foundation is set up to receive funding generated through TEFFI operations and will direct how those funds will be used in Hesston. Already this year, over $15 million of assets and cash have been generated from our TEFFI operations for the benefit of rural Kansas. I’m confident that, through the TEFFI Act, we’ll be able to accomplish great things for the local community Harvey County and beyond that, the entire state of Kansas, as more and more TEFFIs establish operations.
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