State regulator issues operating charter to Beneficient Fiduciary Financial

The Kansas Office of the State Bank Commissioner issued Beneficient Fiduciary Financial LLC an operating charter under the recently enacted Kansas Technology-Enabled Fiduciary Financial Institutions Act, or TEFFI Act.

Beneficient Fiduciary Financial, The Beneficient Co. Group LP's Kansas regulated technology-enabled fiduciary financial institution trust company, is now authorized to exercise fiduciary powers, including as custodian and trustee of, and lender with respect to, alternative assets.

The charter, which took effect Dec. 31, 2021, enables Beneficient Fiduciary Financial to provide fiduciary financing for Beneficient's customer liquidity transactions, allowing Beneficient to expand its operations and customer base. The charter provides Beneficient with regulatory authorization to advance its business strategy of providing liquidity and other services to holders of alternative assets, primarily comprised of mid- to high-net-worth individuals and small to midsize institutional investors and family offices, according to a Form 8-K filed by GWG Holdings Inc.

In a news release, Beneficient said it will continue to work alongside the Kansas legislature, the Kansas Department of Commerce and the Office of the State Bank Commissioner with building the state's infrastructure required under the TEFFI Act ahead of wider adoption by businesses in the alternative asset industry.

The anticipated receipt of the charter was a primary consideration of the GWG Holdings board when it approved the series of transactions by which Beneficient would no longer be a consolidated subsidiary of GWG Holdings, as the board believed the charter would enhance the value of GWG Holdings' investments in Beneficient.