If your firm offers both lending products and investment advisory services in Kansas, you are answering to two entirely separate regulatory bodies. The Kansas OSBC regulates money transmission, consumer lending, mortgage lending, and earned wage access services. The Securities Division governs investment advisers, broker-dealers, and their representatives.
Operating without proper authorization can trigger penalties under multiple statutes, depending on the facts: OSBC civil fines of $5,000 per violation under K.S.A. 9-595, severity level 9 nonperson felony exposure under K.S.A. 9-512, and up to five years federal imprisonment under 18 U.S.C. § 1960.
Between 2022 and 2025, Kansas enacted several changes affecting licensing and compliance planning, including adoption of the Model Money Transmission Modernization Act framework (HB 2560), creation of earned wage access licensing, consolidation updates to the Kansas Mortgage Business Act (SS HB 2247), and enactment of vulnerable adult financial exploitation protections.
Kansas splits financial services regulation across two agencies: the OSBC handles lending, money transmission, and earned wage access, while the Securities Division handles investment advisers and broker-dealers. Which agency governs your obligations depends on the products you offer, the filing system you must use, and the penalty structure you face.
The OSBC's Consumer and Mortgage Lending Division licenses non-depository mortgage lenders, mortgage loan originators, consumer credit providers, credit service organizations, money transmitters, and earned wage access services providers. Its Banking and Trust Division oversees state-chartered banks, trust companies, and Technology-Enabled Fiduciary Financial Institutions.
The OSBC uses a dual filing approach. Most CML Division non-depository licenses are processed through NMLS (see OSBC forms). State-chartered bank, trust company, and TEFFI filings use OSBC's state-specific online portal.
The Securities Division regulates investment advisers, investment adviser representatives, broker-dealers, and broker-dealer agents under K.S.A. 17-12a et seq., with registration filed through IARD. For 2026 renewals, the IARD bulletin set a December 8 payment deadline and a December 26 filing deadline (6:00 PM ET); confirm current IARD instructions each year because these dates shift annually. Registrations expire on December 31.
The OSBC licenses six categories of non-depository financial services providers, each with distinct fee structures and filing systems.
Mortgage Company and Mortgage Loan Originator fees are set by K.A.R. 17-24-2. Credit Services Organization fees are set by K.A.R. 17-25-1. Supervised loan license fees are established annually under K.S.A. 16a-6-104(5); contact OSBC directly for current amounts. Supervised loan licensing is governed by K.S.A. 16a-2-302. Money transmitter and earned wage access fees are set administratively and subject to change; confirm through the NMLS/OSBC application process.
Mortgage company, mortgage loan originator, and supervised loan licenses generally renew annually between December 1 and December 31; if your license expires, the OSBC reinstatement window generally runs through February. Confirm current OSBC renewal and reinstatement instructions each year, as these timelines are administrative rather than statutory.
Kansas adopted the Model Money Transmission Modernization Act framework through HB 2560, effective January 1, 2025, repealing and replacing the prior Kansas Money Transmitter Act with the Kansas Money Transmission Act. The KMTA expands covered activity to include payroll processing services, and its definition of "monetary value" as "a medium of exchange, whether or not redeemable in money" can encompass certain digital asset activity depending on how your product is structured.
Kansas separately enacted the Virtual Currency Kiosk Consumer Protection Act (HB 2515), which makes kiosk operations a form of money transmission under the KMTA. Kiosk operators must obtain a KMTA license within 60 days after July 1, 2026. The KMTA surety bond requirement is the greater of $200,000 or 0.25% of Kansas transaction volume as of the most recent year-end; confirm current requirements directly with OSBC, as the commissioner has authority to adjust financial-responsibility details by rule.
Mortgage company licensing under K.S.A. 9-2201 et seq. requires a surety bond of not less than $100,000, raised from $50,000 by HB 2568.
Kansas created an earned wage access licensing framework effective July 1, 2024, through the Kansas Earned Wage Access Services Act (see HB 2105), codified at K.S.A. 9-2401 et seq. The framework covers both consumer-directed and employer-integrated models; applications are submitted through NMLS. EWA registrations expire on December 31 each year, with renewal applications due at least 30 days before expiration; confirm current OSBC instructions each year because renewal timing can change.
Kansas securities registrations run through IARD, with separate fee schedules, AUM thresholds, and renewal timing from OSBC licensing.
Fee amounts are established by K.A.R. 81-14-2 and K.A.R. 81-3-2. Kansas requires Form ADV filings through IARD under K.A.R. 81-14-1.
If your firm's principal place of business is in Kansas and you manage less than $100 million AUM, you must register with the Kansas Securities Commissioner; firms meeting SEC eligibility thresholds (typically at or above $100 million AUM) register with the SEC instead. Mid-size adviser rules and other eligibility factors can affect this determination; confirm your status under current SEC and Kansas guidance. Annual updating amendments to Form ADV must be filed within 90 days after your fiscal year end per the IA guidelines.
Kansas provides a private fund adviser exemption under K.A.R. 81-14-11. All four conditions must apply: your principal place of business is in Kansas; you provided investment advice to fewer than 15 clients in the preceding 12 months; you do not hold yourself out publicly as an investment adviser; and you do not advise any registered investment company or business development company. The exemption is unavailable if you, any representative, or any controlling person is subject to disqualification under SEC Regulation A Rule 262. If your firm has $25 million or less in AUM and qualifies, you must file a notice with the Kansas administrator by February 1 at no cost; confirm the current year's instructions each year.
Kansas's 2024 and 2025 legislative activity created new license categories, expanded existing ones, and added mandatory reporting obligations that multi-state operators can easily miss.
HB 2560, effective January 1, 2025, repealed and replaced the prior money transmitter statute with the Kansas Money Transmission Act, adopting the Conference of State Bank Supervisors Model Money Transmission Modernization Act framework. The KMTA expands the definition of money transmission to include payroll processing services and, through its broad "monetary value" definition, can cover certain digital asset activity. Kansas also enacted mortgage business act consolidation changes effective January 1, 2025, through Senate Substitute for HB 2247. OSBC summarized these changes for licensees in its law changes page.
Effective July 1, 2024, Kansas created a licensing framework for earned wage access providers through HB 2105 (codified at K.S.A. 9-2401 et seq.), with applications processed through NMLS and registrations expiring December 31 annually.
HB 2562 amended K.S.A. 17-12a412, creating mandatory reporting obligations for broker-dealers, investment advisers, and their representatives who suspect financial exploitation of eligible adults. If your firm encounters this situation, you must provide written notification to authorized account parties and the securities commissioner, with authorized disbursement delays permitted during that process. Good-faith reporters receive civil and administrative immunity.
Kansas can impose administrative, criminal, and securities-law penalties; the applicable framework depends on which regulated activity is at issue.
K.S.A. 9-595 authorizes civil penalties of up to $5,000 per violation for money transmitter infractions. OSBC also has explicit examination authority over banks and trust companies under K.S.A. 9-1701, including the ability to examine as frequently as the commissioner deems necessary. Knowingly violating the Kansas Money Transmitter Act is a severity level 9 nonperson felony under K.S.A. 9-512, with each transaction and each day of violation counting as a separate offense. In January 2025, financial regulators from 48 states imposed an $80 million settlement on Block, Inc. (Cash App) for BSA/AML compliance failures; Kansas participated.
Under 18 U.S.C. § 1960, operating an unlicensed money transmitting business affecting interstate or foreign commerce carries imprisonment of up to five years. Separately, failure to register as a money services business with FinCEN exposes you to civil penalties under 31 U.S.C. § 5321.
Unregistered investment adviser activity may lead to penalties of up to $25,000 per violation under K.S.A. 17-12a412, with an additional $15,000 enhancement per violation when victims are elder or disabled persons, subject to a $1,000,000 aggregate cap per respondent. Confirm current figures against K.S.A. 17-12a412 periodically, as enhancement amounts can be amended.
Kansas financial services teams manage Secretary of State compliance as a separate layer from OSBC and Securities Division licensing. Discern handles the SOS compliance layer only: registered agent coverage, annual report filings, entity formations, and foreign registrations, so your Kansas entities stay in good standing without adding to your licensing workload.
For multi-entity organizations operating across many states, tracking registered agent coverage and annual reports across a full portfolio compounds quickly. Discern centralizes that layer so your team can focus on the licensing workflows OSBC and the Securities Division require.
Book a Discern demo to see how your team can centralize SOS compliance.
These are the Kansas compliance questions financial services teams most often need to resolve quickly.
Does Kansas require a money transmitter license for cryptocurrency businesses?
Yes, in many cases. The KMTA's definition of "monetary value" as "a medium of exchange, whether or not redeemable in money" can encompass certain virtual currency activity depending on the facts and product structure. Kansas also explicitly subjects virtual currency kiosk operators to KMTA licensing under HB 2515, with a compliance deadline of 60 days after July 1, 2026.
When did Kansas's earned wage access licensing requirement take effect?
The Kansas Earned Wage Access Services Act became effective July 1, 2024 (HB 2105). You submit applications through NMLS. EWA registrations expire on December 31 each year, with renewal applications due at least 30 days before expiration; confirm current OSBC instructions each year. Contact the OSBC Consumer and Mortgage Lending Division for current fee amounts.
What is Kansas's private fund adviser exemption?
Under K.A.R. 81-14-11, Kansas does not require registration if you maintain your principal place of business in Kansas; provided investment advice to fewer than 15 clients in the preceding 12 months; do not hold yourself out publicly as an investment adviser; and do not advise any registered investment company or business development company. The exemption is unavailable if you or a controlling person is subject to disqualification under SEC Regulation A Rule 262. Qualifying firms with $25 million or less in AUM must file a notice with the Kansas administrator by February 1; confirm the current year's instructions each year.
What are the penalties for operating as an unlicensed money transmitter in Kansas?
Civil penalties reach $5,000 per violation under K.S.A. 9-595. Criminal penalties under K.S.A. 9-512 classify knowing violations as a severity level 9 nonperson felony, with each transaction counting as a separate offense. Federal penalties under 18 U.S.C. § 1960 include imprisonment of up to five years.
How should multi-state firms coordinate Kansas renewals alongside other state obligations?
Most OSBC mortgage and consumer credit licenses expire December 31, with renewal applications generally due December 1. IARD renewals for the 2026 cycle required payment by December 8, 2025 and filings by December 26, 2025. EWA registrations also expire December 31, with renewal filings due at least 30 days prior. Confirm current OSBC and IARD instructions each year because these dates can change.
Sources: Information in this article sourced from the Kansas OSBC and the Kansas Securities Division, accessed March 12, 2026.
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