Agency Eligibility for SES Onboarding

This policy governs the eligibility requirements that state agencies must meet prior to being onboarded to the State Examination System (“SES” or “System”) for the supervision of financial services companies.

Approved 3/14/2023

Background

SES is part of NMLS and serves as its supervision tool. Therefore, users of SES --states agencies and companies -- must first participate or be in NMLS to be eligible to be onboarded or enrolled in SES.

See Eligibility for Company Enrollment in SES for more information about company eligibility in SES.

Policy Provisions

The minimum requirement that a state agency must meet prior to being onboarded to SES is as follows:

  1. The agency must participate in the Nationwide Multistate Licensing System and Registry (NMLS)

The agency must use NMLS for the licensure or registration of at least one license type.

It is under the state agency’s discretion to determine whether it has the specific authority and established regulatory tools to participate in NMLS as a licensing and/or registration system for the financial services industry other than the mortgage industry. Once the agency completes the minimum requirements to participate in NMLS for either licensing or registration, the agency will become eligible for onboarding to SES.

When the agency is onboarded to SES, it will not be limited to conducting examinations only on the license or registration that is in NMLS. The agency will be able to examine, investigate, or process a consumer complaint on any company that is enrolled in SES (regardless of whether the license or registration is on NMLS), or that meets the System’s company eligibility requirements for system enrollment. The agency will also be able to coordinate multistate examinations with other agencies in the System, and other networked supervision activities.