Blunt consolidates financial regulation

Executive Order 06-04 transfers the Department of Economic Development's divisions of finance, credit unions, state banking board and professional registration to the department of insurance, creating the Department of Insurance, Financial Institutions and Professional Registration.

“This move makes sense because not only does it allow for a more coherent and comprehensive approach to regulating professionals and financial services, products and transactions, but also it allows our economic development experts to focus their efforts to secure Missouri's place as a leader in our national and global economies which will enhance our job growth efforts,” Blunt said in a news release. “The financial products market is evolving, and to regulate these industries effectively and efficiently, we must also evolve.”

Another of the Government Reform Commission's recommendations was to transfer the securities division from the Office of the Secretary of State into the Department of Insurance, Financial Institutions and Professional Registration.

Securities stays

However, Blunt chose not to move forward on that recommendation because of objections raised by Secretary of State Robin Carnahan, despite the benefits that Blunt says a streamlined department focused on enforcement and recognizing the diversity that exists in today's financial industry would have for consumers.

“This change would clearly be in the best interest of consumers, but it would be very difficult to achieve without bipartisan cooperation,” Blunt said.

The new department's primary function will be the regulation of industries and individuals.

Dale Finke will serve as director of the department. Finke will appoint a deputy director whose primary responsibility will be to assist with insurance industry regulation.

The division of professional registration, division of finance, state banking board and division of credit unions will be transferred to the new department. The state banking board and the directors of the divisions of professional registration, credit unions and finance will continue to be appointed by the governor and retain all authority currently provided by law.