Financial Institutions

DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

DIVISION OF FINANCIAL INSTITUTIONS

DAVID Y. IGE
GOVERNOR

CATHERINE P. AWAKUNI COLÓN
DIRECTOR

IRIS K. IKEDA

COMMISSIONER OF FINANCIAL INSTITUTIONS

FOR IMMEDIATE RELEASE

October 22, 2019

First Non-Depository Trust Company Charter Awarded to CSI, Inc.

Honolulu – The Commissioner of Financial Institutions, Department of Commerce and Consumer Affairs, announced the award of the first non-depository trust company charter in Hawaii to CSI, Inc. (“CSI”). The charter would provide an opportunity for the company to serve a “gap” group of consumers who would regularly not be serviced by banks or large investment firms.

The non-depository trust charter allows a company to fulfill a fiduciary responsibility to consumers and provide investment advice. Usually independent businesses, these trust companies operate similar to the trust department of a bank but does not take deposits or make loans. The trust’s focus is fiduciary, acting as a trustee or guardian in the administration of funds, estates, and other related services. These trust companies, also known as independent or corporate trust companies, are different than family trusts because they are chartered to provide fiduciary services to the public.

CSI applied for this license in 2017 and was able to meet the statutory provisions of a trust company license. In its application, CSI stated it was organized to assist the elderly, the infirm, and the disabled.  The company also noted it has been providing protective financial oversight for Hawaii’s elderly and disabled populations with subsidized or low-cost services since 1988.

“It has been a long process to establish the regulatory framework to provide this opportunity safely within Hawaii,” said Commissioner of Financial Institutions Iris Ikeda. “We hope that other companies will seek this license in Hawaii to assist consumers who do not have family or trusted friends to manage their finances if they were to be incapacitated.”

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The Hawaii Division of Financial Institutions (DFI) ensures the safety and soundness of state-chartered and state-licensed financial institutions, and ensures regulatory compliance by state-licensed financial institutions, escrow depositories, money transmitters, mortgage servicers, mortgage loan originators and mortgage loan originator companies, by fairly administering applicable statutes and rules, in order to protect the rights and funds of depositors, borrowers, consumers and other members of the public. Website: https://cca.hawaii.gov/dfi/. Twitter: @HawaiiDFI

 

Media Contact:
William Nhieu
Communications Officer
Department of Commerce and Consumer Affairs
Email: [email protected]
Phone: (808) 586-7582