Groundbreaking legislation benefiting the alternative asset industry and rural Kansas communities
The Technology-Enabled Fiduciary Financial Institution (TEFFI) Act is a comprehensive statutory and regulatory framework designed to attract private investment in Kansas. The Act authorizes the chartering of regulated fiduciaries providing financing, custody, and trustee management services to investors and managers of alternative investments principally located in wealth centers outside of the state. This innovative legislation creates a business, regulatory, and tax-friendly operating environment and represents a major step in modernizing the alternative asset industry.
Under the TEFFI Act, alternative asset financing fees will go directly to rural communities located in Kansas economic growth zones. This law has the potential to vault Kansas to the top of the economic spectrum, establishing the state as a leader in the alternative asset financing industry.
Ben’s Role in the TEFFI Act
Ben was a major contributor and proponent of the TEFFI Act. Ben recently received a charter from the Kansas State Bank Commissioner and the State Banking Board permitting the company to commence operations as a regulated fiduciary. Ben continues to work closely with Kansas officials and regulators to ensure a smooth rollout ahead of wider industry adoption.
Frequently Asked Questions about TEFFI
What are alternative asset trusts?
- In simple terms, a trust is an effective method for holding and managing assets. It vests ownership of those assets in a qualified trustee who has a fiduciary duty to properly maintain, manage and oversee that property.
- In an alternative asset trust, investors transfer title to their alternative assets to a regulated trustee to (i) secure fiduciary management of those investments or (ii) obtain liquidity in exchange for those assets
- Alternative asset investments include private equity, venture capital, feeder funds, fund of funds, leveraged buyouts, private debt, and real estate, among others.
What are TEFFIs?
- Technology-Enabled Fiduciary Financial Institutions, or TEFFIs, are regulated fiduciaries that provide financing, custody, and trustee management services to investors and managers of alternative investments.
Who will benefit from the TEFFI Act?
- The TEFFI Act will first and foremost benefit the people of Kansas. The law is the beginning of a great collaborative effort between politicians, regulators, industry and rural Kansas communities.
- As TEFFIs establish operations in Kansas, cost-effective financing fees will flow directly to rural communities throughout the state.
Will out-of-state companies compete with local banks in Kansas?
- No, TEFFIs do not compete with traditional banking operations in the state in terms of its offerings or its customers.
Will it cost Kansas anything to implement the TEFFI Act?
- No, the implementation of this law will be fully funded by businesses, with Ben providing the initial capital to get the program off the ground.
READ MORE ABOUT TEFFI
The Beneficient Company Group Receives Charter from Kansas State Banking Commissioner
Establishing the First-of-Its-Kind Regulatory Framework for the Industry through the TEFFI Act
Derek Fletcher Discusses Kansas TEFFI Law in Private Funds CFO Publication Q&A
Fiduciary and Regulatory Framework Innovations Shaping the Future of the Secondaries Market
Ben Receives Conditional Trust Banking Charter from Kansas State Banking Commissioner
We appreciate your interest in our article.