69U-130.109. Interim Operational Plan

(1) Pursuant to section 663.412, F.S., an international trust entity that is licensed to maintain an international trust company representative office may not continue to conduct its licensed business in this state if the international trust enity is experiencing any of the statuses outlined in sections 663.412(1)(a)1.-3., F.S.  However, subject to the OFR’s approval, the OFR may permit an international trust company representative office to remain open and in operation if the international trust entity is experiencing any of the statuses outlined in sections 663.412(1)(a)2.-3., F.S., if, within the 30 days after the occurrence of such event, the international trust company representative office provides the office with either a plan to wind down its affairs and business within the subsequent 90 days, or an interim operational plan to the OFR within 30 days after the occurrence of any such event.

(2) The interim operational plan submitted to the OFR must contain the following:

(a) The international trust entity’s operational requirements, restrictions, written agreements, or other documents provided by its home country supervisor based on its current status;

(b) A business continuity and strategic plan of the international trust company representative office and international trust entity based on the status of international trust entity. The plans must include projected timelines and impact on business continuity based on the status of the international trust entity;

(c) A description of the technical competence and administrative ability of the management of the international trust entity and its offices or subsidiaries to manage and address requirements and operations based on its status;

(d) A description of the technical competence and administrative ability of the management of the international trust company representative office based on the status of the international trust entity;

(e) A description of the adequacy of the accounting and internal control systems of the international trust entity, particularly the international trust entity’s ability to monitor and supervise the activities of its offices or subsidiaries, wherever located, based on its status;

(f) A description of any updates to internal systems, processes, policies, and procedures of the international trust company representative office and the international trust entity due to the status of the trust entity;

(g) The name and contact information of the international trust entity’s home country supervisor;

(h) The name and contact information of any supervisory authorities monitoring and overseeing the international trust entity based on its status; and,

(i) If there are any changes to the officer or manager overseeing the operations of the international trust company representative office as part of the interim operational plan, the international trust company representative office shall submit Attachments 4(a) Biographical Information and 4(b) Authorization for Release of Confidential Information to the Form OFR-U-20D, Application for the Establishment of an International Trust Company Representative Office in the State of Florida, incorporated by reference in subsection 69U-130.102(1), F.A.C., for each newly proposed officer or manager.

(3) Standards.  Pursuant to section 663.412(1)(b)1.a., F.S., if the OFR finds that the interim operational plan does not allow for the conduct of business in a safe and sound manner, the OFR shall revoke the license. In making its determination of the acceptability of the interim operational plan, the OFR shall consider the following criteria:

(a) The international trust entity is authorized by the foreign country in which it is organized and licensed to address the affairs of the international trust company representative office in this state;

(b) The international trust company representative office will not engage in any new lines of business or otherwise expand its activities in this state;

(c) Allowing the international trust company representative office to remain open furthers domestic and foreign supervisory cooperation;

(d) Allowing the international trust company representative office to remain open is in the public’s interest and does not present an immediate or serious danger to the public health, safety, or welfare;

(e) Management of the international trust company representative office has the ability to operate the office in a safe and sound manner;

(f) The capital adequacy of the international trust entity, its offices or subsidiaries as specified by the capital adequacy guidelines in the home country and in the United States, based on the status of the international trust entity;

(g) The liquidity, funds management, asset management, and asset administration practices of the international trust entity, its offices or subsidiaries, based on the status of the international trust entity; and,

(h) Any supervisory information from the home country regulator or supervisory authority of the international trust entity, based on its status.

(4) The OFR may conduct an onsite examination or investigation of an international trust company representative office to confirm information provided to the OFR in the interim operational plan.

(5) The OFR shall process requests for approval of an interim operational plan as follows:

(a) Upon receipt of any request for approval of an interim operational plan, the OFR shall review the information contained therein, and request any additional information to complete the request within 15 days after receipt. The international trust entity shall provide the requested additional information within 15 days after the receipt of the notice from the OFR. Failure to respond within the timeframe required is grounds for denial of the interim operational plan, and will result in the subsequent revocation of the license in accordance with section 663.412(1)(a), F.S.

(b) Within 10 days after receipt of any additional information requested, the OFR shall deem the request for approval of an interim operational plan complete or provide notification that the information provided does not satisfy the OFR’s request or requests.

(c) Within 10 days after receipt of a completed request for approval of an interim operational plan, the OFR shall approve or deny the interim operational plan.

(d) Approval of an interim operational plan will be granted for no more than 120 days. Should the international trust entity require an interim period of longer than 120 days, a new interim operational plan must be submitted to the OFR for approval at least 15 days prior to the expiration of the original approval. If a new interim operational plan is not provided within 15 days prior to the expiration of the prior plan, the OFR shall revoke the license in accordance with section 663.412(1)(a), F.S.

(6) If the OFR denies the interim operational plan, the OFR shall revoke the license in accordance with section 663.412(1)(a), F.S.

(7) No more than 2 consecutive interim operational plans may be approved.

(8) Reporting. The international trust entity shall provide weekly reporting of its status as part of the ongoing monitoring of an international trust company representative office that is operating under an interim operational plan.

Rulemaking Authority 655.012(2), 663.412, 663.414 FS. Law Implemented 663.412, 663.414 FS. History–New 1-1-18.