Code of Vermont Rules Agency 21 - DEPARTMENT OF FINANCIAL REGULATION
What Agency 21 CVR Is
Agency 21 of the Code of Vermont Rules contains the rules and regulations issued by the Department of Financial Regulation (DFR). The DFR oversees Vermont’s financial services industries, ensuring they operate safely, fairly, and in compliance with state law.
This includes banks, credit unions, insurance companies, securities firms, and other financial institutions. Agency 21 sets standards for licensing, operations, reporting, consumer protection, and enforcement.
Main Areas Covered in Agency 21
Licensing and Registration
Rules for licensing financial institutions, including banks, credit unions, insurance companies, mortgage lenders, and securities firms.
Requirements for individual professionals such as insurance agents, brokers, and investment advisors.
Procedures for application, renewal, suspension, and revocation of licenses.
Financial Solvency and Reporting
Requirements for financial institutions to maintain minimum capital and reserves.
Rules for regular reporting of financial statements, audits, and other records to the DFR.
Monitoring solvency and financial health to protect consumers and the state economy.
Consumer Protection
Standards for fair treatment of customers by banks, insurance companies, and other financial service providers.
Rules against fraudulent or deceptive practices.
Procedures for handling complaints, disputes, and investigations.
Insurance Regulations
Rules covering life, health, property, and casualty insurance companies.
Standards for policy forms, rates, claims handling, and licensing of insurance agents.
Oversight of insurer solvency, reserves, and risk management.
Securities Regulations
Licensing and regulation of brokers, investment advisors, and securities offerings.
Disclosure and reporting requirements to protect investors.
Rules against fraud, misrepresentation, and other illegal practices in securities transactions.
Enforcement and Penalties
Authority for the DFR to investigate violations of rules and statutes.
Procedures for hearings, fines, license suspension or revocation, and corrective actions.
Steps for resolving disputes between consumers and financial institutions.
Miscellaneous Rules
Administrative procedures for hearings, appeals, and rulemaking within the DFR.
Standards for recordkeeping, confidentiality, and compliance audits.
Why These Rules Exist
Safety and Stability: Ensures financial institutions operate in a safe and sound manner.
Consumer Protection: Protects Vermonters from fraud, misrepresentation, and unfair practices.
Transparency: Ensures financial institutions disclose key information to regulators and consumers.
Compliance: Ensures Vermont’s financial industry operates in accordance with state laws and regulations.
Example of How Agency 21 CVR Works
A new insurance company must meet capital requirements, file proper documentation, and obtain a license from the DFR before operating in Vermont.
A bank must submit audited financial reports annually to prove solvency.
If a consumer believes a broker misled them in a securities transaction, the DFR can investigate and enforce penalties or corrective actions.
✅ In short: Agency 21 CVR sets the rules for Vermont’s financial services industry, covering licensing, solvency, consumer protection, insurance, securities, enforcement, and administrative procedures. It ensures that Vermont’s financial system is safe, fair, and well-regulated.
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