Establishing the First-of-Its-Kind Regulatory Framework for the Industry through the Technology Enabled Fiduciary Financial Institutions (TEFFI) Act

As the designated pilot for the Kansas TEFFI Act, Ben is partnering with legislators, regulators, and industry stakeholders to ensure a smooth rollout of the new legislation ahead of wider adoption.

The Kansas TEFFI Act is a gamechanger for our industry as it provides the first unifying regulatory framework for general partners, sponsors, custodians, and transfer agents to better serve a growing pool of alternative asset investors and managers who finance and manage alternative asset holdings. This innovative bill creates a business, regulatory, and tax-friendly operating environment and provides a major step change in efforts to modernize the industry—both of which will be attractive for the entire industry.

The new law in Kansas creates a clear, cohesive, and unifying regulatory framework for general partners, sponsors, custodians, and transfer agents to better serve a growing pool of alternative asset investors and managers who finance and manage alternative asset holdings. This legislation is the beginning of a terrific partnership in Kansas between legislators, regulators, and the alternative asset industry that will benefit a wide range of stakeholders.”  – Brad Heppner, Ben CEO and Chairman

The new law directs the Kansas State Banking Commissioner to issue a conditional trust banking charter to Ben on July 1, 2021 to establish a fiduciary financial institution pilot program. As pilot, Ben has committed to funding the program and will assist the Office of the State Banking Commissioner on promulgating rules, regulations, and standards ahead of wider adoption. By engaging all stakeholders, Kansas lawmakers passed common sense legislation for the benefit of alternative asset owners, the industry, and – importantly – local economic development zones throughout Kansas.

How It Works

The new law will ensure that companies who provide liquidity for alternative assets have the ability to fully operate within the U.S., while also benefitting communities throughout Kansas.

As long as trusts are established in Kansas to hold alternative assets for investors from across the country and a Kansas TEFFI trust bank provides financing to the trusts, then economic benefits will flow to those local communities.

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