The Office of Financial Regulation proposes to create new rules under Chapter 69U-130, 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-130.001Scope

69U-130.101Definitions

69U-130.102Applications

69U-130.103Application for Establishment of Separate International Trust Company Representative Offices

69U-130.104Reciprocity

69U-130.105Principles of Adequate Supervision of an International Trust Entity’s Foreign Establishments

69U-130.106Capital Accounts

69U-130.107Surrender of License

69U-130.108Service of Process

69U-130.109Interim Operational Plan

69U-130.110Examination Fees

PURPOSE AND EFFECT: The Office of Financial Regulation proposes to create new rules under Chapter 69U-130, 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-130, F.A.C., will govern the regulation of International Trust Company Representative Offices.

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: Pursuant to Section 663.414, F.S., no statement of estimated regulatory costs is required for the proposed 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: 655.012(2), 663.406(4), 663.406(5), 663.406(6), 663.406(9), 663.407(4), 663.408(2), 663.408(4), 663.4081(2), 663.411, 663.413, 663.414 FS.

LAW IMPLEMENTED: 663.406, 663.407, 663.408(2), 663.408(4), 663.4081, 663.411, 663.413, 663.414 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-130.001 Scope.

These rules pertain to the establishment and operation of international trust company representative offices as contemplated by Part III of Chapter 663, Florida Statutes. 

Rulemaking Authority 655.012(2), 663.414 FS. Law Implemented 663.414 FS. History-New _____.

 

69U-130.101 Definitions.

(1) Terms used but not defined within these rules, but which are defined in Title XXXVIII, Banks and Banking, Florida Statutes, have the meanings ascribed to them within Title XXXVIII.  

(2) “Home Country” means the home jurisdiction of the international trust entity where it has been authorized by charter, license, or similarly authorized by operation of law to carry on a trust business.

Rulemaking Authority 655.012(2), 663.414 FS. Law Implemented 663.414 FS. History-New _____.

69U-130.102 Applications.

(1) Application to Establish an International Trust Company Representative Office.  The application for authority to establish an international trust company representative office shall be filed on Form OFR-U-20D, Application for the Establishment of an International Trust Company Representative Office in the State of Florida, effective 01/2018, herein incorporated by reference and available at https://www.flrules.org/XXXXX.  The application shall be submitted with a nonrefundable filing fee in the amount prescribed by Section 663.413(1), F.S., which is made payable to the Office of Financial Regulation (OFR).

(2) Abbreviated Application to Establish an International Trust Company Representative Office. Pursuant to Section 663.406(4), F.S., an international trust entity that has operated an international trust company representative office in this state for at least three years in a safe and sound manner, as defined by commission rule, and that is otherwise eligible to establish an additional office may establish one or more additional international trust company representative offices by providing an abbreviated application.

(a) For the purposes of subsection (2) of this rule, “safe and sound manner” means operating without violating any prior agreement or order of a state or federal regulatory agency, or engaging in any practice, conduct, or violation found by the OFR to be contrary to generally accepted standards applicable to a financial institution, or that otherwise creates the likelihood of loss, insolvency, or dissipation of assets or otherwise prejudices the interest of the international trust entity or its customers.              

(b) The abbreviated application for authority to establish an additional trust company representative office shall be filed on Form OFR-U20D ABR, Abbreviated Application for the Establishment of an Additional International Trust Company Representative Office in the State of Florida, effective 01/2018, herein incorporated by reference and available at https://www.flrules.org/XXXXX.  This abbreviated application shall be submitted with a nonrefundable filing fee in the amount prescribed by Section 663.413(1), F.S. 

(3) After the Fact Licensure In the Event of Acquisition, Merger, or Consolidation.  Pursuant to Section 663.4081, F.S., if an international trust entity proposes to acquire, merge, or consolidate with an international trust entity that presently operates an international trust company representative office licensed in the State of Florida, the OFR may allow the currently licensed international trust company representative office to remain open and in operation after the consumation of a proposed acquisition, merger, or consolidation subject to certain conditions.  An after-the-fact application for authority to establish an international trust company representative office shall be filed on Form OFR-U-20D, Application for the Establishment of an International Trust Company Representative Office in the State of Florida, effective 01/2018, herein incorporated by reference and available at https://www.flrules.org/XXXXX. The application shall be submitted with a nonrefundable filing fee in the amount prescribed by Section 663.413(1), F.S., which is made payable to the Office of Financial Regulation (OFR). 

(a) At least 30 days prior to the consumation of the acquisition, merger, or consolidation, the international trust entity currently licensed to operate an international trust company representative office in Florida must provide the OFR a written notice.  This written notice shall contain the following:

1. The name, home jurisdiction, and home country supervisor of each party to the transaction.

2. The date of the proposed transaction. 

3. The type and terms of the transaction.  The written notice must indicate whether the proposed transaction is an aqcuisition, merger, or consolidation, and give a brief description of the terms of the proposed transaction, including the names of the current and resulting entities, any reasons for engaging in the proposed transaction, and any proposed change to the board of directors. 

4. If the proposed transaction will result in a change of home country supervisor, the written notice must include the name and home country jurisdiction of the new home country supervisor. 

5. Certification that the international trust company representative office will not engage in any new lines of business or otherwise expand its activities until final disposition of the after-the-fact application. 

6. Certification that the proposed transaction will not result in violation of subsection (1) of Section 663.4081, F.S. 

(4) Timelines for Approval.  For applications filed on or after January 1, 2018, the timelines contained in this subsection will apply to each application for authority to establish an international trust company representative office.

(a) The original and two copies of the application in the format required by the OFR, accompanied by the prescribed fee, shall be filed with the OFR Division of Financial Institutions at 200 East Gaines Street, Tallahassee, Florida 32399-0371. No application will be deemed filed or received for publication unless accompanied by the proper filing fee. All filing fees for any license action covered by these rules are nonrefundable. Upon receipt of the application and the accompanying fee, the applicant shall be so notified by the OFR.

(b) The OFR shall have published in the Florida Administrative Register notice of the application within 21 days after receipt.

(c) Within 21 days after publication of notice, any person may request a hearing. Failure to request a hearing within 21 days after notice constitutes a waiver of any right to a hearing. The OFR or an applicant may request a hearing at any time prior to the issuance of a final order. Hearings shall be conducted pursuant to Sections 120.569 and 120.57, F.S.

(d) Should a hearing be requested as provided by paragraph (4)(c), the applicant or licensee shall publish at its own cost a notice of the hearing in a newspaper of general circulation in the area affected by the application.

(e) All information the applicant wants to present to support the application should be submitted with the original filing. The required exhibits in the application forms are not intended to limit the applicant's presentation of any of the requirements, but merely represent the minimum information required to be filed. All additional information and/or complete correction of all errors or omissions must be submitted within 60 days after requested by the OFR. Applicant's failure to respond to such request within 60 days after the date of the request shall be construed by the OFR as grounds for denial of an application in accordance with the provisions of Section 120.60(1), F.S., and the file shall be closed, unless good cause is shown that it remain open. Should the file be closed pursuant to these provisions, the applicant shall be duly notified.

(f) An applicant may amend the application as to those factors generally within the control or selection of the applicant once, as a matter of course, at any time within 30 days from its receipt for filing. Otherwise, the application may only be amended with permission from the OFR.  Requests to make material changes filed at any time after the application has been received shall be deemed by the OFR to be grounds for denial, and upon such denial a new application accompanied by the appropriate filing fee shall be required. If the OFR grants a request to make material changes in the application, the amended application will be treated as a new application with respect to the applicable rules of this chapter, except that no additional filing fee shall be required. When an application is denied on the grounds set forth above, the applicant shall be duly notified.

(g) Upon a request from an applicant, the OFR shall permit the filing of supplemental information external to the application which sets forth evidence of changing economic conditions and transactions, occurrences, or events having a bearing on the application and which have taken place since the application was filed. Such supplemental information must be filed within a reasonable time after the information is known by the applicants but in no event later than 10 days before the hearing, if one has been requested.

(h) An application for authority to establish an international trust company representative office must be approved or denied within 180 days after receipt of the original application, or receipt of the timely requested additional information or correction of errors or omissions. An application for such a license which is not approved or denied within the 180-day period or within 30 days after conclusion of a public hearing on the application, whichever is later, shall be deemed approved subject to the satisfactory completion of conditions required by statute as a prerequisite to license.

(i) The applicant may withdraw the application at any time by filing a written notice of withdrawal from the correspondent as designated on the application form with the OFR. The OFR shall publish notice of the withdrawal within 21 days of its receipt, if the original application required public notice.

(5) Notice Regarding Collection and Use of Social Security Numbers. The forms incorporated by reference in this rule request that the applicant provide his or her social security number. In accordance with Sections 119.071(5)(a)2.a. and b., F.S., the OFR gives the following notice to applicants regarding the OFR’s collection and use of social security numbers:

(a) The OFR’s collection of social security numbers is not expressly authorized by or mandatory under federal or state law, but it is imperative for the performance of the OFR’s duties and responsibilities as prescribed by Sections 663.406(6) and (9), F.S., to ensure the safe and sound management and operations of the international trust company representative office in this state.

(b) Social security numbers collected by the OFR may not be used by the OFR for any purpose other than the purpose provided in this notice.

(c) Social security numbers held by the OFR are confidential and exempt from Section 119.07(1), F.S., and Section 24(a), Article I of the State Constitution. This exemption does not supersede any federal law prohibiting the release of social security numbers or any other applicable public records exemption for social security numbers existing prior to May 13, 2002, or created thereafter.

(d) Social security numbers held by the OFR may be disclosed if any of the following apply:

1. The disclosure of the social security number is expressly required by federal or state law or a court order,

2. The disclosure of the social security number is necessary for the receiving agency or governmental entity to perform its duties and responsibilities,

3. The individual expressly consents in writing to the disclosure of his or her social security number,

4. The disclosure of the social security number is made to comply with the USA Patriot Act of 2001, Pub. L. No. 107-56, or Presidential Executive Order 13224,

5. The disclosure of the social security number is made to a commercial entity for the permissible uses set forth in the federal Driver’s Privacy Protection Act of 1994, 18 U.S.C. sections 2721 et seq.; the Fair Credit Reporting Act, 15 U.S.C. sections 1681 et seq.; or the Financial Services Modernization Act of 1999, 15 U.S.C. sections 6801 et seq., provided that the authorized commercial entity complies with the requirements of this paragraph,

6. The disclosure of the social security number is for the purpose of the administration of health benefits for an agency employee or his or her dependents,

7. The disclosure of the social security number is for the purpose of the administration of a pension fund administered for the agency employee’s retirement fund, deferred compensation plan, or defined contribution plan, or

8. The disclosure of the social security number is for the purpose of the administration of the Uniform Commercial Code by the office of the Secretary of State.

Rulemaking Authority 655.012(2), 663.414, 663.406(4),(5),(6),and (9), 663.4081(2) FS. Law Implemented 663.414, 663.406 FS. History-New _____.

 

69U-130.103 Application for Establishment of Separate International Trust Company Representative Offices.

In accordance with Chapter 663, F.S., a qualified international trust entity may establish separately licensed international trust company representative offices by application for authority to establish an international trust company representative office as provided in subsection 69U-130.102(2), F.A.C.  Each such separately licensed international trust company representative office shall meet the criteria specified in Section 663.406, F.S., and rules promulgated thereunder, and shall be fully subject to all applicable restrictions and limitations imposed by Part III of Chapter 663, F.S., and the rules promulgated thereunder.

Rulemaking Authority 655.012(2), 663.414 FS. Law Implemented 663.408, 663.414 FS. History-New _____.

 

69U-130.104 Reciprocity.

The applicant must establish to the satisfaction of the OFR that the applicant’s home country permits any financial institution licensed or chartered by any state or any federal bank regulatory agency in the United States to establish similar facilities therein or exercise similar powers to those for which an application has been made. Similar facilities or the exercise of similar powers shall include the indirect maintenance of such facilities or exercise of such powers through the ownership of a subsidiary company. The information submitted may consist of data as to the existing activities of foreign trust companies in the applicant’s home country, an opinion of a licensed member of the legal profession of the country in the applicant’s home country, or a certificate of the appropriate supervisory authority thereof.  In determining whether the requisite reciprocity exists, the criteria and terms and conditions of admission to the foreign country shall be considered sufficiently similar if, taken as a whole, with due regard to local practices, they are as favorable as the criteria and the terms and conditions existing in Florida.

Rulemaking Authority 655.012(2), 663.414 FS. Law Implemented 663.414, 663.406(7) FS. History-New _____.

 

69U-130.105 Principles of Adequate Supervision of an International Trust Entity’s Foreign Establishments.

(1) Section 663.406(8)(c), F.S., states a license shall not be issued to an international trust entity for the purpose of operating an international trust company representative office in this state unless the international trust entity is adequately supervised by the appropriate regulatory agency of its home country.

(2) Section 663.406(9), F.S., requires the commission to establish general principles to evaluate the adequacy of supervision of an international trust entity’s foreign establishments. These principles must be based upon the need for cooperative supervisory efforts and consistent regulatory guidelines and must address, at a minimum, the capital adequacy, asset quality, management, earnings, liquidity, internal controls, audits and foreign exchange operations and positions of the international trust entity.

(3) An international trust entity with foreign establishments is considered adequately supervised if it is subject to consolidated supervision. Consolidated supervision is supervision which enables the home country supervisor to evaluate:

(a) The safety and soundness of the international trust entity’s operations located within the home country supervisor’s primary jurisdiction; and

(b) The safety and soundness of the operations performed by the international trust entity’s offices, or subsidiaries, or any affiliates that are directly involved in or facilitate the financial services functions, or fiduciary activities of the international trust entity, wherever located.

(4) An international trust entity with no foreign establishments is considered adequately supervised if the home country supervisor can evaluate the safety and soundness of the international banking corporation's operations through its offices or subsidiaries located in the home country.

(5) The home country supervisor is deemed to be able to evaluate the safety and soundness of the international trust entity, including its offices or subsidiaries, if the home country supervisor maintains information on the following regulatory components:

(a) The technical competence and administrative ability of the management of the international trust entity;

(b) The adequacy of the operational, 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;

(c) The adequacy of asset management and asset administration policies and procedures;

(d) The capital adequacy of the international trust entity, its offices or subsidiaries as specified by any capital adequacy guidelines in the home country;

(e) The earnings and liquidity of the international trust entity; and

(f) The external and internal auditors’ reports as well as any management comment letters or any documented corrective action by management.

(6) Adequate supervision, as described in subsections (3) and (4), does not necessarily require supervision of companies which control the international trust entity or require supervision of companies under common control with the international trust entity but not in the international trust entity’s chain of control. However, in cases where a holding company is the only controlling element in an international trust group, holding company supervision by a home country supervisor shall be required when it is needed to ensure consolidated supervision of all entities in the group.

(7) In cases where a holding company is not supervised, adequate supervision shall be considered to exist if the home country supervisor regulates transactions between the international trust entity and controlling persons or entities under common control.

(8) An international trust entity, its offices or subsidiaries, shall be considered adequately supervised if it is subject to comprehensive supervision. Comprehensive supervision is supervision which ensures that the supervisory processes and procedures are designed to inform the home country supervisor about the international trust entity’s financial condition, including capital position; asset quality; and the capability of management.

(9) Comprehensive supervision does not require the home country supervisor to conduct on-site examinations of the international trust entity or its offices or subsidiaries. However, at a minimum, it requires that the home country supervisor:

(a) Determine that the international trust entity, and its offices and subsidiaries, have adequate procedures for monitoring and controlling its domestic and foreign operations; and

(b) Is authorized to obtain information, by examination, audits or by other means, on the domestic and foreign operations of the international trust entity, including its offices and subsidiaries, and the authority to demand financial reports which permit analysis of the consolidated condition of the international trust entity.

Rulemaking Authority 655.012(2), 663.406(9), 663.414 FS. Law Implemented 663.406(9), 663.414 FS. History-New _____.

 

69U-130.106 Capital Accounts.

(1) Pursuant to Section 663.407(2), F.S., the proposed capitalization of an international trust entity seeking licensure to operate an international trust company representative office must be in such amount as the OFR deems adequate, but may in no case be less than $1 million dollars. 

(2) The OFR may not deem the proposed capitalization of the international trust entity to be adequate unless the international trust entity is considered well-capitalized in accordance with the capital adequacy standards of its home country.  An international trust entity seeking licensure to operate an international trust company representative office under this part must certify that it is considered well-capitalized in accordance with the capital adequacy standards of its home country.

(3) The OFR may require additional capital for an international trust entity seeking licensure to operate an international trust company representative office in the State of Florida if the OFR finds that the condition and operations of the international trust entity or the proposed scope or type of operations of the proposed international trust company representative office require additional capital.  The factors to be considered by the OFR include:

(a) the nature and type of business conducted;

(b) the nature and degree of liquidity in assets held in a corporate capacity;

(c) the amount and type of fiduciary assets under management or assets under administration;

(d) the complexity of fiduciary duties and degree of discretion undertaken;

(e) the competence and experience of management;

(f) the extent and adequacy of internal controls;

(g) the presence or absence of annual unqualified audits by an independent certified public accountant;

(h) the reasonableness of business plans for retaining or acquiring additional capital; and

(i) the existence and adequacy of insurance obtained or held by the international trust entity for the purpose of protecting its clients, beneficiaries, and grantors.

(4) Certifications of capital shall be filed on Form OFR-U-57T, Certificate of Capital, effective 01/2018, herein incorporated by reference and available at https://www.flrules.org/XXXXX.

Rulemaking Authority 655.012(2), 663.414, 663.407(4) FS. Law Implemented 663.407, 663.414 FS. History-New _____.

 

 

69U-130.107  Surrender of License.

(1) An international trust entity proposing to terminate the operation of its international trust company representative office shall surrender its license in the manner prescribed by this rule.

(2) An international trust entity shall provide to the OFR written notice of its intention to terminate the operation of its international trust representative office at least sixty (60) days prior to the proposed date of termination.  The notice shall state that the proposed termination has been approved by the board of directors of the international trust entity, or a committee or executive officer duly authorized by such board of directors, and shall include the proposed date of termination and the name of the officer in charge of the termination procedures, which officer may be the general manager or any other officer of the international trust company representative office.

(3) An international trust entity shall provide a written notice of termination in a newspaper of general circulation in the county in which its international trust company representative office is located for a period of two months prior to the proposed date of termination and shall provide the OFR with an affidavit of publication showing that the requirement of publication has been satisfied.

(4) Reports to the OFR.

(a) At the time of its filing the notice required by subsection (2) of this rule, an international trust entity shall file with the OFR a report of the international trust company representative office’s assets and liabilities together with attached schedules fully describing the amount and maturity of each of the international trust company representative offices’s actual and contingent liabilities, if any.  In addition, the international trust entity shall notify the OFR of any pending litigation.

(b) Within thirty (30) days after the date on which the notice required by subsection (2) of this rule, is given to the OFR, an international trust entity shall file with the OFR, a report of the international trust company representative office’s assets and liabilities.  The report shall reflect the settlement of the international trust representative office’s aggregate liabilities as defined in Section 663.07(1), F.S.  Any such liability shall be deemed settled if it is either discharged by payment or assumed by another office of the international trust entity.

(c) Within sixty (60) days after the date on which the notice required by subsection (2) of this rule is given to the OFR, an international trust entity shall file with the OFR a statement certified by an appropriate officer of such entity that all the international trust company representative office’s assets have been transferred to another office of the international trust entity, and that all the international trust company represenative office’s liabilities have been settled.

(5) The OFR may conduct an examination of the books of an international trust company representative office at any time after its receipt of the report required by paragraph (4)(a) of this rule, and shall conduct a final examination of such books within fourteen (14) days of its receipt of the statement required by paragraph (4)(c) of this rule.

(6) An international trust company representative office’s operations shall be deemed terminated effective upon the expiration of thirty (30) days from the date of filing the statement required by paragraph (4)(c) of this rule, unless, within such thirty (30) day period, the OFR provides to the international trust entity a written notice specifying the grounds for denial of such proposed termination.  The OFR shall not deny a request to terminate unless it learns of the existence of any outstanding claim or claims, or any outstanding regulatory obligations which the international trust entity has not met, or unless it deems that the requirements of this rule have not been satisfied.

Rulemaking Authority 655.012(2), 663.414, 663.408(2), 663.408(4) 663.411 FS. Law Implemented 663.414, 663.408(2), 663.408(4), 663.411 FS. History-New _____. 

 

69U-130.108 Service of Process.

An international trust entity operating an international trust company representative office in this state is subject to service of processing at the location of such international trust company representative office.  Service of complaints, summonses, notices, orders, subpoenas, and any other legal paper required to be served upon an international trust entity at any such location may be made in accordance with the law and rules governing the court in which the action is, was, or is to be pending.

Rulemaking Authority 655.012(2), 663.414 FS. Law Implemented 663.414 FS. History-New _____.

 

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 Section 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 Section 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 a Form OFR-U-10, Interagency Biographical and Financial Form, revised 3/2003, which is hereby incorporated by reference and available at https://www.flrules.org/XXXXX, and Form OFR-U-10A, Confidential Release of Information Supplement to the Interagency Biographical and Financial Form, revised 6/2006, which is hereby incorporated by reference and available at https://www.flrules.org/XXXXX, 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 OFR may request periodic reporting 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), 663.414 FS. Law Implemented 663.414 FS. History-New _____.

 

69U-130.110 Examination Fees.

(1) Pursuant to Section 663.413(2), F.S., the OFR shall charge each international trust entity which maintains an international trust company representative office in this state and is licensed under the provisions of Chapter 663, F.S., an examination fee equal to the actual cost of each examiner’s participation during each examination of such international trust company representative office. The examination fee shall equal the actual cost of the examination, but in no event shall such fees (inclusive of travel expenses and other incidental expenses) be less than $200 per day for each examiner participating in the examination.

(2) For purposes of this section, “actual cost” means the direct salary (excluding employee benefits), travel expenses and other incidental expenses required as a result of the examination staff's onsite and offsite examination of the international trust company representative office. In addition, “actual cost” shall include the travel expenses of any supervisory staff required as a result of examination findings.

(3) The actual cost of any field staff person and supervisor required for training assignments approved by management shall be excluded from the examination fee charged the international banking corporation.

(4) All examination fee payments shall be postmarked within 30 days after receipt of an invoice from the OFR.

Rulemaking Authority 655.012(2), 663.413, 663.414 FS. Law Implemented 663.413, 663.414 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: August 16, 2017

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