Missouri governor consolidates state agencies

An executive order issued by Missouri Gov. Matt Blunt consolidated state agencies that manage and regulate financial services and provide professional oversight. 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, it also 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. "The financial products market is evolving and to regulate these industries effectively and efficiently we must also evolve."

One of the Government Reform Commission's recommendations was to transfer the securities division from the secretary of state's office into the department of insurance, financial institutions and professional registration. Blunt chose not to move forward on that recommendation because of objections raised by secretary of State Robin Carnahan, despite the benefits that a streamlined department focused on enforcement and that recognizes 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 members of the state banking board and the directors of the Division of Professional Registration, Division of Credit Unions and the Division of Finance will continue to be appointed by the governor and retain all authority as currently provided by law.