The Office of Financial Regulation proposes to create new rules under Chapter 69U-135, F.A.C., to implement Ch. 2017-83, Laws of Florida (International Financial Institutions), signed into law on June 9, 2017. The legislation requires the Financial ...

 

DEPARTMENT OF FINANCIAL SERVICES

FSC - Financial Institution Regulation

RULE NOS.:RULE TITLES:

69U-135.101Written Notice for Qualification

69U-135.102Renewal of Qualification

69U-135.103Procedures for Surrender of Qualification

PURPOSE AND EFFECT: The Office of Financial Regulation proposes to create new rules under Chapter 69U-135, F.A.C., to implement Ch. 2017-83, Laws of Florida (International Financial Institutions), signed into law on June 9, 2017. The legislation requires the Financial Services Commission to implement some of its provisions by rule.

SUMMARY: Chapter 69U-135, F.A.C., will govern the regulation of Qualified Limited Service Affiliates of International Trust Entities.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Agency expressly relies on an analysis of potential economic impact conducted by persons with subject matter knowledge of this rule.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 663.532(1), 663.539, 663.538(1) FS.

LAW IMPLEMENTED: 663.532, 663.539, 663.538 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Jodi-Ann V. Livingstone, Chief Counsel, Division of Financial Institutions, [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69U-135.101 Written Notice for Qualification.

The written notice to qualify as a qualified limited service affiliate shall be filed on Form OFR-U-135, Written Notice to Qualify as a Qualified Limited Service Affiliate in the State of Florida, effective 01/2018, herein incorporated by reference and available at https://www.flrules.org/XXXXX.

Rulemaking Authority 663.532(1) FS. Law Implemented 663.532 FS. History-New _____.

 

69U-135.102 Renewal of Qualification.

(1) A qualification must be renewed every 2 years.  Within 30 days of the end of each 2 year period, qualification must be renewed by filing a written notice of renewal with the OFR.  The written notice of renewal of qualification shall be filed on Form OFR-U-135R, Written Notice of Renewal of Qualification, effective 01/2018, herein incorporated by reference and available at https://www.flrules.org/XXXXX.

(2) Each written notice of renewal of qualification must be signed under penalty of perjury by the executive officer or managing member of the qualified limited service affiliate, to the best of his or her knowledge. Rulemaking Authority 663.539 FS. Law Implemented 663.539 FS. History-New _____.

 

69U-135.103 Procedures for Surrender of Qualification.

(1) A qualified limited service affiliate that proposes to terminate operations in this state must surrender its qualification.  A qualified limited service affiliate must surrender its qualification by providing the OFR with written notification at least 60 days prior to the proposed date of voluntary termination. The notice must contain the proposed date of termination and the name of the officer in charge of the termination procedures, and shall attach a proposed plan for discontinuing business as well as a certified copy of the resolution of the board of directors, or members if a limited liability company, authorizing the action.

(2) The proposed plan for discontinuing business must include:

(a) A draft of the proposed notice to each international trust entity to whom services are provided;

(b) Any outstanding liabilities or claims and the proposed process to settle those liabilities or claims;

(c) Any other information related to the resolution of outstanding matters and discontinuance of business including any related proposed amendments to the company's articles of incorporation or organization or articles of dissolution.

(3) Operations of a qualified limited service affiliate are deemed terminated upon the later of the expiration of the 60 days from the date of the filing of the notice of voluntary surrender or upon the date provided in the notice of voluntary surrender, unless the OFR provides written notice specifying the grounds for denial of such proposed termination.

Rulemaking Authority 663.538(1) FS. Law Implemented 663.538 FS. History-New _____.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Jeremy W. Smith, Director, Division of Financial Institutions

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: October 17, 2017

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: June 30, 2017