Definitions, Applications, Reciprocity, Principles of Adequate Supervision of an International Trust Entity’s Foreign Establishments, Capital Accounts, Surrender of License, Interim Operational Plan, Examination Fees

 

DEPARTMENT OF FINANCIAL SERVICES

FSC - Financial Institution Regulation

RULE NOS.:RULE TITLES:

69U-130.101Definitions

69U-130.102Applications

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-130.109Interim Operational Plan

69U-130.110Examination Fees

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 43 No. 161, August 18, 2017 issue of the Florida Administrative Register.

 

Following comments made by the Joint Administrative Procedures Committee, the following changes were made:

69U-130.101 Definitions.

(1) “Aggregate Liabilities” as used in this section excludes accrued expenses and amounts due and other liabilities to branches, offices, agencies, and wholly owned, except for a nominal number of directors’ shares, subsidiaries of the international trust entity in question. 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) No change.

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

 

69U-130.102 Applications.

(1) No change.

(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 in writing with, or order issued by, of a state or federal regulatory agency, or engaging in any practice, conduct, or violation found by the OFR to be contrary to Title XXXVIII, Florida Statutes 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 international trust company representative office shall be filed on Form OFR-U-20D 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) No change. 

(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. No change.

2. The effective date of the proposed transaction. 

3. through 6. No change.

(4) No change.

(a) The original and one copy 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) through (i) No change.

(5) No change.

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

 

 

69U-130.104 Reciprocity.

No change.

 

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) through (3) No change.

(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 trust entity’s banking corporation's operations through its offices or subsidiaries located in the home country.

(5) through (9) No change.

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.

No change.

 

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) No change.

(2) An international trust entity shall provide to the OFR written notice of its intention to terminate the operation of its international trust company 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) No change.

(4) Reports to the OFR.

(a) No change.

(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 company 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) No change.

(5) through (6) No change.

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-130.109 Interim Operational Plan.

(1) No change.

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

(a) through (h) No change.

(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 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 69U-130.102(1), F.A.C., 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) through (7) No change.

(8) Reporting. The international trust entity OFR shall provide weekly may request periodic 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 _____.

 

69U-130.110 Examination Fees.

(1) through (2) No change.

(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 trust entity banking corporation.

(4) No change.

Rulemaking Authority 655.012(2), 663.413, 663.414 FS. Law Implemented 663.413, 663.414 FS. History-New _____.

 

PROPOSED RULE EFFECTIVE DATE: JANUARY 1, 2018

Following comments made by the Joint Administrative Procedures Committee, changes were made to material incorporated by reference as set forth below:

Form OFR-U-20D: Added a request to submit the original and one copy of the application to the OFR in the Instructions to the Form.  Changed all references to Attachments 3(a) and 3(b) to 4(a) and 4(b). On page 8, number 12 was revised to replace Chapter 607 with Section 607.1503, Florida Statutes.

Form OFR-U-20D ABR: On page 6, number 6 was revised to replace Chapter 607 with Section 607.1503, Florida Statutes.