About OFI
The Kentucky Office of Financial Institutions (OFI) is proud to be a part of the Department of Public Protection within the Environmental and Public Protection Cabinet. The department is responsible for the supervision and regulation of various industries that perform services for the citizens of Kentucky, including the regulation of the financial services industry.
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Who We Regulate |
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OFI is the state agency responsible for the supervision of the financial services industry and for chartering, licensing and registering various financial institutions, securities firms and professionals operating in Kentucky. The industries and individuals for which OFI has oversight include:
- State-chartered banks
- Trust companies
- State-chartered credit unions
- Savings and loan associations
- Consumer loan companies
- Industrial loan companies
- Mortgage loan companies
- Mortgage loan brokers
- Check cashers/deferred deposit companies
- Title pledge lenders
- Sellers of money orders
- Money transmitters
- State-licensed or registered securities
- Securities broker-dealers, agents and issuers
- Investment advisers
It is the mission of OFI to serve the public through effective and efficient regulation that promotes consumer confidence and economic growth.
In order to accomplish its mission, OFI conducts examinations on state-regulated financial industries through its Division of Financial Institutions and Division of Securities.
OFI also provides educational materials and outreach to protect consumers from financial fraud. OFI assists the industry and public through the investigation of complaints filed with the office. If you have a question or need to file a complaint, OFI is here to help.
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Division of Financial Institutions |
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OFI Bank Branch
The Bank Branch is responsible for chartering and regulating Kentucky’s state-chartered banks, bank trust departments, independent trust companies, bank holding companies and banks' information systems as established in Kentucky Revised Statutes (KRS) 286.3.
The OFI's efficient and effective examination program has been recognized by the Conference of State Bank Supervisors (CSBS) for meeting the rigorous standards of examination excellence. CSBS originally accredited the OFI in 1992, with reaccreditations in 1997, 2002 and 2007. By achieving this high level of excellence, CSBS recognizes the OFI's ability to effectively supervise its regulated institutions.
OFI also has agreements with the Federal Deposit Insurance Corporation and the Federal Reserve Board, which allow maximum use of examination resources while reducing regulatory burden. These agreements provide supervision through examinations conducted jointly or alternately.
OFI Credit Union Branch
The Credit Union Branch regulates, under KRS 286.6, state-chartered credit unions operating in Kentucky.
OFI also has obtained the honor of being accredited by the National Association of State Credit Union Supervisors (NASCUS) for excellence in its examination program. The NASCUS accreditation program is a national program designed to create continuity and to strengthen state credit union governing agencies. NASCUS most recently reaccredited OFI in 2007.
OFI has an examination agreement with the National Credit Union Administration (NCUA), which maximizes the examination process and reduces regulatory burden by allowing joint or alternating examinations.
OFI Compliance Branch (Financial Institutions)
The Compliance Branch regulates mortgage loan companies and mortgage loan brokers licensed by OFI and, therefore, subject to examinations conducted on an 18- to 24-month cycle.
The primary purpose of the examination is to ensure that these businesses comply with state laws that apply to mortgage lending found in KRS 286.8 and with federal laws and regulations such as the Real Estate Settlement Procedures Act (RESPA) and Regulation Z (Truth-in-Lending).
The examination includes a review of loan documents and a sampling of loan files to ensure that customers are charged only fees allowed by statute and contract. Loan logs are checked for sufficient detail and accuracy, and other records are reviewed to ensure they are maintained according to state and federal guidelines.
Consumer loan companies, industrial loan companies, check cashing/deferred deposit companies and money transmitters are all licensed by the OFI through the Compliance Branch and are subject to annual examinations to ensure they are adhering to the statutes that apply to their industries, KRS 286.4, KRS 286.7, KRS 286.9 and KRS 286.11 respectively.
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Division of Securities |
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The Division of Securities regulates securities activities in Kentucky and is divided into three branches: Compliance, Enforcement and Licensing and Registration.
OFI Compliance Branch (Securities)
The Compliance Branch conducts on-site examinations of broker dealers, agents and investment advisers. Examiners in this branch perform hundreds of examinations annually across Kentucky to ensure that securities firms and entities are in compliance with the Securities Act of Kentucky KRS 292, also known as the Blue Sky laws.
OFI Enforcement Branch
The Enforcement Branch works closely with the Office of Legal Services to ensure that the state's securities laws are enforced through administrative or court actions.
Licensing and Registration Branch
The Licensing and Registration Branch licenses professional selling securities and registers securities offered and sold in Kentucky.
Office of Financial Institutions
1025 Capital Center Drive
Suite 200
Frankfort, KY 40601
Phone: 502-573-3390
Fax: 502-573-0086
E-mail: kfi@ky.gov
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