Bill Text: FL S1106 | 2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: International Trust Entities

Spectrum: Bipartisan Bill

Status: (Passed) 2016-04-06 - Chapter No. 2016-192 [S1106 Detail]

Download: Florida-2016-S1106-Introduced.html
       Florida Senate - 2016                                    SB 1106
       
       
        
       By Senator Flores
       
       37-00945-16                                           20161106__
    1                        A bill to be entitled                      
    2         An act relating to limited purpose international trust
    3         company representative offices; amending s. 663.01,
    4         F.S.; defining terms; amending ss. 655.966 and
    5         662.111, F.S.; conforming cross-references; amending
    6         s. 663.02, F.S.; providing applicability of state
    7         banking laws to limited purpose international trust
    8         company representative offices; amending s. 663.03,
    9         F.S.; revising applicability of certain acts; creating
   10         s. 663.045, F.S.; exempting a limited purpose
   11         international trust company representative office from
   12         licensing requirements; requiring certain entities to
   13         be registered; specifying required information on an
   14         application for registration; requiring a sworn
   15         statement by a specified person affirming certain
   16         statements; specifying procedures for the Office of
   17         Financial Regulation to review an application;
   18         requiring the office to register an applicant if
   19         certain criteria are satisfied; specifying procedures
   20         for incomplete or deficient applications; specifying
   21         time limits for the office to approve or deny an
   22         application; specifying procedures for the office to
   23         deny an application; requiring an applicant to provide
   24         the office with a specified fidelity bond; specifying
   25         the duration of a registration; providing that the
   26         office is not responsible for examining certain
   27         entities regarding the safety and soundness of their
   28         operations; providing applicability; amending s.
   29         120.80, F.S.; exempting applications for registration
   30         of limited purpose international trust company
   31         representative offices from certain provisions of ch.
   32         120, F.S.; creating s. 663.046, F.S.; providing
   33         procedures and a fee for registration renewals;
   34         providing applicability; amending s. 663.055, F.S.;
   35         specifying capital requirements for a limited purpose
   36         international trust company representative office;
   37         creating s. 663.057, F.S.; specifying certain
   38         requirements for a limited purpose international trust
   39         company representative office; creating s. 663.058,
   40         F.S.; requiring a limited purpose international trust
   41         company representative office to procure and maintain
   42         a specified fidelity bond to indemnify against certain
   43         loss; providing fidelity bond requirements for an
   44         applicant; providing certain requirements for a
   45         corporate surety; requiring a limited purpose
   46         international trust company representative office to
   47         procure and maintain specified liability insurance
   48         coverage to cover certain acts and omissions; amending
   49         s. 663.0625, F.S.; specifying permissible and
   50         prohibited activities by a limited purpose
   51         international trust company representative office and
   52         by certain employees; requiring a specified written
   53         disclosure; amending s. 663.09, F.S.; requiring a
   54         limited purpose international trust company
   55         representative office to file specified reports with
   56         the office; requiring a limited purpose international
   57         trust company representative office to notify the
   58         office, on a specified form and within a specified
   59         time, of certain events; authorizing the office to
   60         conduct an investigation of a limited purpose
   61         international trust company representative office;
   62         creating s. 663.095, F.S.; providing grounds for which
   63         the office may revoke the registration of a limited
   64         purpose international trust company representative
   65         office; specifying procedures for the office to revoke
   66         a registration; authorizing the office to seek a court
   67         order to annul or dissolve a limited purpose
   68         international trust company under certain
   69         circumstances; creating s. 663.096, F.S.; authorizing
   70         the office to issue and serve a complaint for a cease
   71         and desist order based on certain violations;
   72         specifying procedures for the issuance of a cease and
   73         desist order and for contesting the office’s action;
   74         specifying procedures for the issuance of an emergency
   75         cease and desist order; providing requirements for a
   76         limited purpose international trust company
   77         representative office to wind up its affairs after
   78         entry of an order; authorizing the office to seek a
   79         court order to annul or dissolve a limited purpose
   80         international trust company representative office
   81         under certain circumstances; creating s. 663.115,
   82         F.S.; providing requirements for a limited purpose
   83         international trust company representative office
   84         discontinuing its business; amending s. 663.12, F.S.;
   85         specifying fees for registration and conversion to or
   86         from a license; providing an effective date.
   87          
   88  Be It Enacted by the Legislature of the State of Florida:
   89  
   90         Section 1. Present subsections (1) through (9) of section
   91  663.01, Florida Statutes, are redesignated as subsections (2)
   92  through (10), respectively, present subsections (10) and (11) of
   93  that section are redesignated as subsections (12) and (13),
   94  respectively, and new subsections (1) and (11) are added to that
   95  section, to read:
   96         663.01 Definitions.—As used in this part, the term:
   97         (1) “Affiliated international trust company” means an
   98  international trust company that is a member of the same
   99  business organization as a limited purpose international trust
  100  company representative office and that does not provide
  101  depository, investment management, or brokerage services in
  102  conjunction with its trust business. An affiliated international
  103  trust company is not an international banking corporation as
  104  defined in subsection (7).
  105         (11)“Limited purpose international trust company
  106  representative office” means an office organized under the laws
  107  of this state and registered and maintained in this state for
  108  the purpose of engaging in nonfiduciary activities described in
  109  s. 663.0625(2), and which is not licensed as an international
  110  trust company representative office.
  111         Section 2. Paragraph (a) of subsection (2) of section
  112  655.966, Florida Statutes, is amended to read:
  113         655.966 Automated teller machine; surcharge disclosure.—
  114         (2)(a) Subject to the requirements of subsection (1), an
  115  agreement to operate or share an automated teller machine may
  116  not prohibit, limit, or restrict the right of the operator or
  117  owner of an automated teller machine, as defined in s.
  118  655.960(3), to charge an access fee or surcharge, not otherwise
  119  prohibited under state or federal law, to a customer conducting
  120  a transaction using an account from an international banking
  121  corporation as defined in s. 663.01(7) s. 663.01(6).
  122         Section 3. Paragraph (e) of subsection (15) of section
  123  662.111, Florida Statutes, is amended to read:
  124         662.111 Definitions.—As used in this chapter, the term:
  125         (15) “Foreign licensed family trust company” means a family
  126  trust company that:
  127         (e) Is not owned by, or a subsidiary of, a corporation,
  128  limited liability company, or other business entity that is
  129  organized in or licensed by any foreign country as defined in s.
  130  663.01(4) s. 663.01(3).
  131         Section 4. Subsection (3) is added to section 663.02,
  132  Florida Statutes, to read:
  133         663.02 Applicability of state banking laws.—
  134         (3)(a) If a limited purpose international trust company
  135  representative office limits its activities to the activities
  136  authorized under s. 663.0625, other sections of the financial
  137  institutions codes do not apply to it except as otherwise
  138  expressly provided in this chapter.
  139         (b) A limited purpose international trust company
  140  representative office is a financial institution solely for
  141  purposes of the applicability of s. 655.012, relating to general
  142  supervisory powers and rulemaking, and s. 655.057, relating to
  143  records and limitations on public access to records, except if
  144  it appears from the context that such provisions are clearly
  145  applicable only to banks or trust companies organized under the
  146  laws of this state.
  147         (c) This section does not limit the office’s authority to
  148  investigate an entity to ensure that it does not violate this
  149  chapter or applicable provisions of the financial institutions
  150  codes.
  151         Section 5. Section 663.03, Florida Statutes, is amended to
  152  read:
  153         663.03 Applicability of the Florida Business Corporation
  154  Act and the Florida Revised Limited Liability Company Act.
  155  Notwithstanding ss. 605.0102(25) and (26) and 607.01401(12) s.
  156  607.01401(12), the provisions of chapter 605 and of part I of
  157  chapter 607 not in conflict with the financial institutions
  158  codes which relate to foreign limited liability companies or
  159  foreign corporations apply to all international banking
  160  corporations and their offices doing business in this state and
  161  to limited purpose international trust company representative
  162  offices.
  163         Section 6. Section 663.045, Florida Statutes, is created to
  164  read:
  165         663.045 Registration of a limited purpose international
  166  trust company representative office; application for
  167  registration; approval or disapproval.
  168         (1)A limited purpose international trust company
  169  representative office is not required to obtain a license under
  170  this chapter. However, a limited purpose international trust
  171  company representative office is required to be registered with
  172  the office if it transacts limited purpose international trust
  173  company representative office business in this state or
  174  maintains in this state any office for carrying on such
  175  business. An affiliate, subsidiary, or other person or business
  176  entity acting as an agent for, on behalf of, or for the benefit
  177  of such limited purpose international trust company
  178  representative office, which engages in such activities in this
  179  state or maintains in this state any office for carrying on such
  180  business, is also required to be registered with the office.
  181         (2) A person required to be registered under subsection (1)
  182  shall register with the office on forms prescribed by the office
  183  and provide the following information in English:
  184         (a) The name of the proposed limited purpose international
  185  trust company representative office, which need not be in
  186  English.
  187         (b) A copy of the articles of incorporation or articles of
  188  organization and the bylaws or operating agreement of the
  189  proposed limited purpose international trust company
  190  representative office.
  191         (c) The physical address and mailing address of the
  192  proposed limited purpose international trust company
  193  representative office, which must be located in this state.
  194         (d) A statement describing in detail the activities of the
  195  proposed limited purpose international trust company
  196  representative office.
  197         (e) The name and biographical information of each
  198  individual who will initially serve as a director, an officer, a
  199  manager, or a member acting in a managerial capacity of the
  200  proposed limited purpose international trust company
  201  representative office.
  202         (f) The name of the business organization to which the
  203  limited purpose international trust company representative
  204  office belongs, together with such biographical information as
  205  the commission or office may reasonably require by rule for each
  206  person who, together with related interests as defined in s.
  207  655.005(1), owns or controls, directly or indirectly, 25 percent
  208  or more of the voting stock or nonvoting stock that is
  209  convertible into voting stock of the proposed limited purpose
  210  international trust company representative office.
  211         (g)The regulatory authorities that any affiliated
  212  international trust company is subject to and proof of good
  213  standing with such regulatory authorities. Such proof must be
  214  translated into English if written in another language.
  215         (h) The amount of the initial capital account of the
  216  proposed limited purpose international trust company
  217  representative office and the form in which the capital was paid
  218  and will be maintained, as stated in a review conducted by an
  219  independent certified public accountant licensed in this state.
  220         (i) The type and amount of bonds or insurance that will be
  221  procured and maintained by the proposed limited purpose
  222  international trust company representative office pursuant to s.
  223  663.058.
  224         (j) A sworn statement signed by an executive officer of the
  225  applicant affirming that the following statements are true:
  226         1. The proposed limited purpose international trust company
  227  representative office is not providing depository, investment
  228  management, or fiduciary services and is providing only the
  229  permissible activities as authorized in s. 663.0625(2).
  230         2.No director, officer, manager, or member of the proposed
  231  limited purpose international trust company representative
  232  office or of any affiliated international trust company served
  233  as a director, an officer, a manager, or a member acting in a
  234  managerial capacity for an international trust company
  235  representative office, an affiliated international trust
  236  company, or a financial institution that was licensed under the
  237  financial institutions codes, or by the Federal Government or
  238  any other state, the District of Columbia, a territory of the
  239  United States, or a foreign country, had that license suspended
  240  or revoked within 10 years preceding the date of the
  241  application.
  242         3. No director, officer, or manager of, or member acting in
  243  a managerial capacity for, the proposed limited purpose
  244  international trust company representative office or an
  245  affiliated international trust company has been convicted of, or
  246  pled guilty or nolo contendere to, regardless of whether
  247  adjudication of guilt was entered by the court, or has been the
  248  subject of a civil penalty imposed for, a violation of the
  249  financial institutions codes, including s. 655.50, chapter 896,
  250  or similar state or federal law or related rule, or a crime
  251  involving fraud, misrepresentation, or moral turpitude.
  252         4. No director, officer, or manager of, or member acting in
  253  a managerial capacity for, the proposed limited purpose
  254  international trust company representative office or affiliated
  255  international trust company has had a professional license
  256  suspended or revoked within the 10 years preceding the date of
  257  the application.
  258         5.All information contained in the application is true and
  259  correct to the best knowledge of the executive officer signing
  260  the sworn statement on behalf of the proposed limited purpose
  261  international trust company representative office.
  262         (k) Any other information that is consistent with this
  263  section, as required by commission rule.
  264         (3) Upon the filing of the registration application by the
  265  limited purpose international trust company representative
  266  office, the office shall conduct an investigation to confirm:
  267         (a) That the persons who will serve as directors or
  268  officers of the corporation or, if the applicant is a limited
  269  liability company, managers or members acting in a managerial
  270  capacity, have not:
  271         1. Been convicted of, or entered a plea of nolo contendere
  272  to, a crime involving fraud, misrepresentation, or moral
  273  turpitude;
  274         2. Been convicted of, entered a plea of nolo contendere to,
  275  or been the subject of a civil penalty imposed for, a violation
  276  of the financial institutions codes, including s. 655.50,
  277  chapter 896, or similar state or federal law;
  278         3. Been directors, officers, managers, or members of a
  279  trust company or financial institution licensed or chartered
  280  under the financial institutions codes or by the Federal
  281  Government or any other state, the District of Columbia, a
  282  territory of the United States, or a foreign country and whose
  283  license or charter was suspended or revoked within the 10 years
  284  preceding the date of the application;
  285         4. Had a professional license suspended or revoked within
  286  the 10 years preceding the date of the application; or
  287         5. Made a false statement of material fact on the
  288  application.
  289         (b) That capital accounts of the proposed limited purpose
  290  international trust company conforming to s. 663.055(5) will be
  291  established and that fidelity bonds and general liability
  292  insurance coverage required under s. 663.058 will be issued and
  293  effective as of the date the limited purpose international trust
  294  company representative office commences operations.
  295         (c) That each affiliated international trust company with
  296  which it intends to engage in the activities authorized under s.
  297  663.0625 is in good standing with the relevant regulatory body
  298  that supervises the activity of such international trust
  299  company.
  300         (d) That the jurisdiction in which each affiliated
  301  international trust company is organized and chartered is not
  302  currently listed on the Financial Action Task Force Public
  303  Statement or on its list of jurisdictions with deficiencies in
  304  anti-money laundering or counter-terrorist financing.
  305         (4) If the investigation required under this section
  306  confirms that the applicant has met the requirements of ss.
  307  663.055(5), 663.057, and 663.058, and that the criteria in
  308  subsection (3) have been satisfied, the office shall register
  309  the applicant to operate as a limited purpose international
  310  trust company representative office.
  311         (5) If the registration application is incomplete or the
  312  office is unable to verify the information provided with the
  313  application, the office shall notify the applicant in writing,
  314  and the applicant shall have 30 days after receipt of such
  315  notification to provide the required information. The office
  316  shall deny the application if the applicant fails to timely
  317  provide such information.
  318         (6)(a)Notwithstanding chapter 120, an application may be
  319  returned to the applicant on a one-time basis for correction of
  320  substantial deficiencies and may be resubmitted without payment
  321  of an additional fee if the applicant resubmits the application
  322  within 60 days after the date the office returns the
  323  application.
  324         (b) With respect to affiliated international trust
  325  companies, if some but not all of the criteria in paragraphs
  326  (3)(c) and (d) are met, the applicant may resubmit the
  327  application without the affiliated international trust companies
  328  that do not meet the criteria, and the office shall permit
  329  registration conditioned on the limited purpose international
  330  trust company representative office not conducting activities
  331  authorized in this state under s. 663.0625 with respect to any
  332  such affiliated international trust companies that are removed
  333  from the application.
  334         (7) Notwithstanding s. 120.60(1), an application for
  335  registration of a limited purpose international trust company
  336  representative office must be approved or denied within 180 days
  337  after receipt of the original application or receipt of the
  338  timely requested additional information or correction of errors
  339  or omissions. An application for registration not approved or
  340  denied within the 180-day period shall be deemed approved
  341  subject to the satisfactory completion of conditions required by
  342  statute as a prerequisite to registration and approval of
  343  insurance coverage by the appropriate insurer.
  344         (8) If the office determines the criteria in subsection (3)
  345  have not been met, the office must provide the applicant with a
  346  notice of its intent to deny registration and of the applicant’s
  347  right to request a hearing pursuant to ss. 120.569 and 120.57.
  348         (9)Before the office may grant approval of a registration,
  349  the applicant must provide to the office a fidelity bond that
  350  meets the requirements of s. 663.058.
  351         (10) A registration under this chapter shall be valid for 1
  352  year after its effective date.
  353         (11) The office is not responsible for examining a limited
  354  purpose international trust company representative office or an
  355  affiliated international trust company regarding the safety and
  356  soundness of its operations.
  357         (12)A company in operation as of October 1, 2016, which
  358  meets the definition of a limited purpose international trust
  359  company representative office and is not otherwise licensed
  360  under this chapter must apply for registration as a limited
  361  purpose international trust company representative office on or
  362  before December 30, 2016, or cease doing business in this state.
  363         Section 7. Subsection (3) of section 120.80, Florida
  364  Statutes, is amended to read:
  365         120.80 Exceptions and special requirements; agencies.—
  366         (3) OFFICE OF FINANCIAL REGULATION.—
  367         (a) Notwithstanding s. 120.60(1), in proceedings for the
  368  issuance, denial, renewal, or amendment of a license or
  369  registration or approval of a merger pursuant to title XXXVIII:
  370         1.a. The Office of Financial Regulation of the Financial
  371  Services Commission shall have published in the Florida
  372  Administrative Register notice of the application within 21 days
  373  after receipt.
  374         b. Within 21 days after publication of notice, any person
  375  may request a hearing. Failure to request a hearing within 21
  376  days after notice constitutes a waiver of any right to a
  377  hearing. The Office of Financial Regulation or an applicant may
  378  request a hearing at any time before prior to the issuance of a
  379  final order. Hearings shall be conducted pursuant to ss. 120.569
  380  and 120.57, except that the Financial Services Commission shall
  381  by rule provide for participation by the general public.
  382         2. Should a hearing be requested as provided by sub
  383  subparagraph 1.b., the applicant, or licensee, or registrant
  384  shall publish at its own cost a notice of the hearing in a
  385  newspaper of general circulation in the area affected by the
  386  application. The Financial Services Commission may by rule
  387  specify the format and size of the notice.
  388         3. Notwithstanding s. 120.60(1), and except as provided in
  389  subparagraph 4., an application for license or registration for
  390  a new bank, new trust company, new credit union, new savings and
  391  loan association, or new licensed family trust company, or new
  392  limited purpose international trust company representative
  393  office must be approved or denied within 180 days after receipt
  394  of the original application or receipt of the timely requested
  395  additional information or correction of errors or omissions. An
  396  application for such a license or registration or for
  397  acquisition of such control which is not approved or denied
  398  within the 180-day period or within 30 days after conclusion of
  399  a public hearing on the application, whichever is later, shall
  400  be deemed approved subject to the satisfactory completion of
  401  conditions required by statute as a prerequisite to license or
  402  registration and approval of insurance of accounts for a new
  403  bank, a new savings and loan association, a new credit union, or
  404  a new licensed family trust company by the appropriate insurer,
  405  or a new limited purpose international trust company
  406  representative office.
  407         4. In the case of an application for license to establish a
  408  new bank, trust company, or capital stock savings association in
  409  which a foreign national proposes to own or control 10 percent
  410  or more of any class of voting securities, and in the case of an
  411  application by a foreign national for approval to acquire
  412  control of a bank, trust company, or capital stock savings
  413  association, the Office of Financial Regulation shall request
  414  that a public hearing be conducted pursuant to ss. 120.569 and
  415  120.57. Notice of such hearing shall be published by the
  416  applicant as provided in subparagraph 2. The failure of such
  417  foreign national to appear personally at the hearing shall be
  418  grounds for denial of the application. Notwithstanding s.
  419  120.60(1) and subparagraph 3., every application involving a
  420  foreign national shall be approved or denied within 1 year after
  421  receipt of the original application or any timely requested
  422  additional information or the correction of any errors or
  423  omissions, or within 30 days after the conclusion of the public
  424  hearing on the application, whichever is later.
  425         (b) In any application for a license, registration, or
  426  merger pursuant to title XXXVIII which is referred by the agency
  427  to the division for hearing, the administrative law judge shall
  428  complete and submit to the agency and to all parties a written
  429  report consisting of findings of fact and rulings on evidentiary
  430  matters. The agency shall allow each party at least 10 days in
  431  which to submit written exceptions to the report.
  432         Section 8. Section 663.046, Florida Statutes, is created to
  433  read:
  434         663.046 Renewal of registration of a limited purpose
  435  international trust company representative office.—
  436         (1) Within 45 days before the expiration of the
  437  registration, a limited purpose international trust company
  438  representative office shall file its annual renewal application
  439  with the office on a form prescribed by the commission. The
  440  renewal application must include a sworn declaration by an
  441  executive officer of the limited purpose international trust
  442  company representative office which:
  443         (a) Attests that the limited purpose international trust
  444  company representative office has operated in full compliance
  445  with this chapter, chapter 896, or similar state or federal law,
  446  or any related rule or regulation, and with all federal laws and
  447  regulations that apply to any client of the affiliated
  448  international trust company for whom it has conducted activities
  449  authorized under s. 663.0625(2).
  450         (b) Describes any material changes to the information
  451  provided under s. 663.045 regarding its operations, principal
  452  place of business, directors, officers, managers, or members
  453  acting in a managerial capacity or any affiliated international
  454  trust company since the date of registration.
  455         (c) Demonstrates that the minimum requirements for capital
  456  and insurance have been met, as stated in a review prepared by
  457  an independent certified public accountant licensed in this
  458  state.
  459         (2)A fee of $1,500 must be submitted with the annual
  460  renewal application for registration of a limited purpose
  461  international trust company representative office. All fees
  462  received by the office pursuant to this section shall be
  463  deposited into the Financial Institutions’ Regulatory Trust Fund
  464  pursuant to s. 655.049 for the purpose of administering the
  465  provisions of this chapter with respect to registration of
  466  limited purpose international trust company representative
  467  offices.
  468         (3) The provisions of s. 663.045 relating to conduct of the
  469  investigation and issuance or denial of registration apply to a
  470  registration renewal under this section.
  471         Section 9. Subsection (4) of section 663.055, Florida
  472  Statutes, is amended, and subsection (5) is added to that
  473  section, to read:
  474         663.055 Capital requirements.—
  475         (4) For the purpose of this part, the capital accounts of
  476  an international banking corporation and a limited purpose
  477  international trust company representative office shall be
  478  determined in accordance with rules adopted by the commission.
  479  In adopting such rules, the commission shall consider similar
  480  rules adopted by bank regulatory agencies in the United States
  481  and the need to provide reasonably consistent regulatory
  482  requirements for international banking corporations which will
  483  maintain the safe and sound condition of international banking
  484  corporations doing business in this state.
  485         (5) A limited purpose international trust company
  486  representative office may not be organized or operated with a
  487  capital account containing less than $100,000. Such capital
  488  shall be in the form of cash or cash equivalents.
  489         Section 10. Section 663.057, Florida Statutes, is created
  490  to read:
  491         663.057 Requirements for a limited purpose international
  492  trust company representative office.—A limited purpose
  493  international trust company representative office shall
  494  maintain:
  495         (1) A principal office physically located in this state
  496  where original or true copies of all records and accounts of the
  497  limited purpose international trust company representative
  498  office may be accessed and made readily available for
  499  examination by the office in accordance with this chapter. A
  500  limited purpose international trust company representative
  501  office may also maintain one or more branch offices within this
  502  state and shall notify the office in writing at least 30 days
  503  before the establishment of such branch offices.
  504         (2) A registered agent who has an office in this state at
  505  the street address of the registered agent.
  506         (3) All applicable state and local business licenses,
  507  charters, and permits.
  508         (4) A deposit account with a state-chartered or national
  509  financial institution that has a principal or branch office in
  510  this state.
  511         (5) At least one director or manager who is a resident in
  512  this state.
  513         Section 11. Section 663.058, Florida Statutes, is created
  514  to read:
  515         663.058 Fidelity bonds; insurance.—
  516         (1) A limited purpose international trust company
  517  representative office shall procure and maintain a fidelity bond
  518  on all active officers, directors, managers, members acting in a
  519  managerial capacity, and employees of the company, regardless of
  520  whether they receive a salary or other compensation from the
  521  company, in order to indemnify the company against loss because
  522  of a dishonest, fraudulent, or criminal act or an omission on
  523  the part of any such persons, whether acting alone or in
  524  combination with other persons.
  525         (2)The fidelity bond required by this section:
  526         (a) Must be issued by an insurer authorized to do business
  527  in this state.
  528         (b) May not be less than $500,000.
  529         (c) Must be in a form satisfactory to the office and shall
  530  run to the state for the benefit of any claimants in this state
  531  against the applicant to secure the faithful performance of the
  532  obligations of the applicant regarding the receipt, handling,
  533  and transmission of information and documents provided to the
  534  applicant. The aggregate liability of the fidelity bond may not
  535  exceed the principal sum of the bond. Claimants against the
  536  applicant may bring suit directly on the fidelity bond, or the
  537  Department of Legal Affairs may bring suit on behalf of the
  538  claimants.
  539         (d) May not be cancelled by the applicant or the corporate
  540  surety except upon written notice to the office by registered
  541  mail. A cancellation may not take effect until 30 days after
  542  receipt by the office of the written notice.
  543         (3) The corporate surety must, within 10 days after it pays
  544  a claim, give written notice to the office by registered mail of
  545  the payment with details sufficient to identify the claimant and
  546  the claim or judgment paid.
  547         (4) If the principal sum of the bond is reduced by one or
  548  more recoveries or payments, the applicant must furnish a new or
  549  additional bond so that the total or aggregate principal sum of
  550  the bond equals the sum required in paragraph (2)(b).
  551  Alternatively, an applicant may furnish an endorsement executed
  552  by the corporate surety reinstating the bond to the required
  553  principal sum.
  554         (5)The limited purpose international trust company
  555  representative office shall also procure and maintain general
  556  liability insurance coverage under a corporate or group policy
  557  with a minimum of $1 million per occurrence and a policy period
  558  aggregate limit of $3 million in which it is listed as an
  559  insured, to cover the acts and omissions of officers, directors,
  560  managers, members acting in a managerial capacity, and
  561  employees, regardless of whether the person receives a salary or
  562  other compensation from the company.
  563         Section 12. Section 663.0625, Florida Statutes, is amended
  564  to read:
  565         663.0625 International trust company representative offices
  566  and limited purpose international trust company representative
  567  offices; permissible activities; requirements.—
  568         (1) An international trust company representative office
  569  may not act as a fiduciary, but may conduct any nonfiduciary
  570  activities that are ancillary to the fiduciary business of its
  571  international banking corporation or trust company, which but
  572  may not act as a fiduciary. Permissible activities include:
  573         (a) Advertising, marketing, and soliciting for fiduciary
  574  business on behalf of an international banking corporation or
  575  trust company;
  576         (b) Contacting existing or potential customers, answering
  577  questions, and providing information about matters related to
  578  their accounts;
  579         (c) Serving as a liaison in this state between the
  580  international banking corporation or trust company and its
  581  existing or potential customers; and
  582         (d) Engaging in any other activities approved by the office
  583  or under rules of the commission.
  584         (2) A limited purpose international trust company
  585  representative office that registers pursuant to s. 663.045 may
  586  conduct any of the following activities:
  587         (a) Participate in or attend conferences, seminars, or
  588  events that are intended for industry or professional
  589  participants and are not advertised to the general public, for
  590  the purposes of marketing the services of an affiliated
  591  international trust company.
  592         (b) Market the services of an affiliated international
  593  trust company to lawyers, accountants, banks, licensed financial
  594  advisors, and other wealth planning professionals who are
  595  licensed by a state, federal, or territorial government or
  596  certified by a recognized professional accrediting entity.
  597         (c) In connection with the authorized activities described
  598  in paragraphs (a) and (b), engage in name-recognition or
  599  branding activities in the form of signage or promotional
  600  materials that use the name of the affiliated international
  601  trust company or the name of the business organization of which
  602  the affiliated international trust company is a member.
  603         (d) Assist clients or referred prospective clients of the
  604  affiliated international trust company in communicating with the
  605  affiliated international trust company, completing documentation
  606  relating to the trust relationship, and obtaining information
  607  about matters related to trusts with which they are or may
  608  become associated. However, a limited purpose international
  609  trust company representative office under this subsection may
  610  not have authority to accept such clients on behalf of the
  611  affiliated international trust company and may not otherwise
  612  bind the affiliated international trust company.
  613         (e) Exercise the powers of a corporation under chapter 607
  614  or a limited liability company under chapter 605 which are
  615  reasonably necessary to enable it to fully exercise a power
  616  enumerated in this section or authorized by this chapter.
  617         (f) Engage in any other activities consistent with this
  618  section, as prescribed by commission rule.
  619         (3)(a)Representatives and Employees, officers, or
  620  directors at an international trust company representative
  621  office or a limited purpose international trust company
  622  representative such office may not act as a fiduciary, accept
  623  including, but not limited to, accepting the fiduciary
  624  appointment, execute executing the fiduciary documents that
  625  create the fiduciary relationship, or make making discretionary
  626  decisions regarding the investment or distribution of fiduciary
  627  accounts.
  628         (b) A limited purpose international trust company
  629  representative office may not accept custody of any property of
  630  the client of the affiliated international trust company on
  631  behalf of the affiliated international trust company and may not
  632  deliver such property to the affiliated international trust
  633  company.
  634         (c) A limited purpose international trust company
  635  representative office may not solicit business from the general
  636  public on behalf of its affiliated international trust company
  637  in this state or advertise its services to the general public in
  638  this state. This paragraph does not limit a limited purpose
  639  international trust company representative office’s authorized
  640  activities under subsection (2).
  641         (d) A limited purpose international trust company
  642  representative office may not use the words “bank,” “trust,” or
  643  the name of an affiliated international trust company as part of
  644  its company or fictitious name.
  645         (e) A limited purpose international trust company
  646  representative office may not market to or discuss the services
  647  of an affiliated international trust company with any person who
  648  has not previously been referred to it by a professional
  649  described in paragraph (2)(b) or who is an existing client of an
  650  affiliated international trust company.
  651         (4) A limited purpose international trust company
  652  representative office shall provide the following written
  653  disclosure to a prospective or existing client of its affiliated
  654  international trust company: “...(The name of the limited
  655  purpose international trust company representative office)...
  656  and any affiliated international trust companies are not
  657  licensed or authorized to conduct the trust or fiduciary
  658  business in Florida.” The commission may establish by rule
  659  criteria for the size and font of the required disclosure.
  660         Section 13. Section 663.09, Florida Statutes, is amended to
  661  read:
  662         663.09 Reports; records; significant events;
  663  investigations.—
  664         (1) An international banking corporation doing business in
  665  this state shall, at such times and in such form as the
  666  commission prescribes, make written reports in the English
  667  language to the office, under the oath of one of its officers,
  668  managers, or agents transacting business in this state, showing
  669  the amount of its assets and liabilities and containing such
  670  other matters as the commission or office requires. An
  671  international banking corporation that maintains two or more
  672  offices may consolidate such information in one report unless
  673  the office otherwise requires for purposes of its supervision of
  674  the condition and operations of each such office. The late
  675  filing of such reports is subject to an administrative fine as
  676  prescribed under s. 655.045(2). If such international banking
  677  corporation fails to make such report, as directed by the
  678  office, or if such report contains a false statement knowingly
  679  made, the same shall be grounds for revocation of the license of
  680  the international banking corporation.
  681         (2) The international banking corporation of each state
  682  licensed international bank agency or international branch shall
  683  perform or cause to be performed an audit of such international
  684  bank agency or international branch. The commission shall, by
  685  rule, prescribe the minimum audit procedures including the audit
  686  reporting requirements which would satisfy the provisions of
  687  this subsection.
  688         (3) Each international banking corporation which operates
  689  an office licensed under this part shall cause to be kept, at a
  690  location accepted by the office:
  691         (a) Correct and complete books and records of account of
  692  the business operations transacted by such office. All policies
  693  and procedures governing the operations of such office, as well
  694  as any existing general ledger or subsidiary accounts, shall be
  695  maintained in the English language. The office may require that
  696  any other document not written in the English language which the
  697  office deems necessary for the purposes of its regulatory and
  698  supervisory functions be translated into English at the expense
  699  of the international banking corporation.
  700         (b) Current copies of the charter and bylaws of the
  701  international banking corporation, relative to the operations of
  702  the office, and minutes of the proceedings of its directors,
  703  officers, or committees relative to the business of the office.
  704  Such records shall be kept pursuant to s. 655.91 and shall be
  705  made available to the office, upon request, at any time during
  706  regular business hours of the office. Any failure to keep such
  707  records as aforesaid or any refusal to produce such records upon
  708  request by the office shall be grounds for suspension or
  709  revocation of any license issued under this part.
  710         (4) In addition to any other reports it may be required to
  711  make, an international banking corporation which maintains an
  712  international bank agency or international branch in this state
  713  shall make reports to the office in such form and at such times
  714  as the commission prescribes by rule concerning the management,
  715  asset quality, capital adequacy, and liquidity of the
  716  international banking corporation.
  717         (5)A limited purpose international trust company
  718  representative office shall file reports with the office as the
  719  commission or the commission may prescribe by rule. The rules
  720  may prescribe such reports to be subject to examination by the
  721  office as a condition of granting or maintaining the
  722  registration.
  723         (6)A limited purpose international trust company
  724  representative office shall notify the office within 30 days of
  725  learning of the occurrence of any of the following significant
  726  events by filing with the office a form disclosing:
  727         (a) Any civil, criminal, or administrative investigation or
  728  proceeding initiated by a regulatory or law enforcement
  729  authority against the limited purpose international trust
  730  company representative office;
  731         (b) The addition, resignation, or termination of a director
  732  or manager, an executive officer, or a member acting in a
  733  managerial capacity;
  734         (c) Any change in outside accountants who are used to
  735  verify capital accounts;
  736         (d) Any interruption of fidelity bonding or insurance
  737  coverage;
  738         (e) Any suspected criminal act perpetrated against the
  739  limited purpose international trust company representative
  740  office. However, no liability shall be incurred as a result of
  741  making a good faith effort to fulfill the disclosure requirement
  742  in this paragraph;
  743         (f) The loss of the charter of any affiliated international
  744  trust company;
  745         (g) The loss of good standing with the applicable
  746  regulatory authorities by any affiliated international trust
  747  company;
  748         (h) A change in the company name or fictitious name of the
  749  limited purpose international trust company; or
  750         (i) A change with respect to any of the statements
  751  certified under s. 663.045.
  752         (7) The disclosure form shall be specified by commission
  753  rule. An executive officer of the limited purpose international
  754  trust company representative office must swear that the form is
  755  authentic and accurate.
  756         (8) The office may conduct an investigation of a limited
  757  purpose international trust company representative office at any
  758  time it deems necessary to determine whether a limited purpose
  759  international trust company representative office has engaged in
  760  any act prohibited under s. 663.0625.
  761         Section 14. Section 663.095, Florida Statutes, is created
  762  to read:
  763         663.095 Revocation of registration of a limited purpose
  764  international trust company representative office.—
  765         (1) Any of the following constitutes grounds for the office
  766  to revoke the registration of a limited purpose international
  767  trust company representative office:
  768         (a) The company is not a limited purpose international
  769  trust company representative office as defined in this chapter;
  770         (b) A violation of s. 663.055(5), s. 663.057, s. 663.058,
  771  or s. 663.0625;
  772         (c) A violation of chapter 896, relating to financial
  773  transactions offenses, or any similar state or federal law or
  774  any related rule or regulation;
  775         (d) A violation of any commission rule which continues 30
  776  days after written notice from the office;
  777         (e) A violation of any order of the office which continues
  778  30 days after written notice from the office;
  779         (f) A breach of any written agreement with the office;
  780         (g) A prohibited act or practice under s. 663.0625;
  781         (h) A failure to file annual reports or provide information
  782  or documents to the office upon written request; or
  783         (i) Conviction of a felony or entry of a plea of guilty or
  784  nolo contendere, regardless of adjudication of guilt, by the
  785  limited purpose international trust company representative
  786  office, or its officers, directors, managers, or persons acting
  787  in a managerial capacity, or an affiliated international trust
  788  company in a state or federal court, or in the courts of a
  789  foreign country with which the United States maintains
  790  diplomatic relations which involves a violation of law relating
  791  to fraud, currency transaction reporting, money laundering,
  792  theft, or moral turpitude and the charge is equivalent to a
  793  felony charge under state or federal law.
  794         (2)(a) Upon a finding of the occurrence of any of the acts
  795  set forth in paragraphs (1)(a)-(h), the office may enter an
  796  order suspending the company’s registration and provide notice
  797  of its intention to revoke the registration and of the right to
  798  a hearing pursuant to ss. 120.569 and 120.57.
  799         (b) If there has been a violation or failure to disclose a
  800  violation under paragraph (1)(i), the office may immediately
  801  enter an order revoking the registration.
  802         (c) The limited purpose international trust company
  803  representative office shall have 90 days to wind up its affairs
  804  after its registration has been revoked. During such time, it
  805  may not engage in any of the activities authorized under s.
  806  663.0625, except to the extent required to provide notice that
  807  it is winding down its affairs in this state and the name or
  808  names and contact information of the persons who may be
  809  contacted for additional information.
  810         (d) If after 90 days the company has not provided
  811  satisfactory proof to the office that it is no longer in
  812  operation, the office may seek an order from the circuit court
  813  for the annulment or dissolution of the company. Satisfactory
  814  proof shall consist of a corporate resolution authorizing
  815  dissolution, a certified copy of articles of dissolution filed
  816  with the Division of Corporations of the Department of State, or
  817  documentation confirming the closing of the limited purpose
  818  international trust company representative office.
  819         Section 15. Section 663.096, Florida Statutes, is created
  820  to read:
  821         663.096 Cease and desist authority.—
  822         (1) The office may issue and serve a complaint upon a
  823  limited purpose international trust company representative
  824  office or any individual if the office has reason to believe
  825  that the limited purpose international trust company
  826  representative office or individual named therein is engaging in
  827  or has engaged in conduct that:
  828         (a) Indicates the company is not a limited purpose
  829  international trust company representative office as defined in
  830  this chapter;
  831         (b) Is a violation of s. 663.055(5), s. 663.057, s.
  832  663.058, or s. 663.0625;
  833         (c) Is a violation of any commission rule which continues
  834  30 days after written notice from the office;
  835         (d) Is a violation of any order of the office which
  836  continues 30 days after written notice from the office;
  837         (e) Is a breach of any written agreement with the office;
  838         (f) Is a prohibited act or practice pursuant to s.
  839  663.0625;
  840         (g) Is a failure to provide information or documents to the
  841  office upon written request within 30 days after such request or
  842  such longer time as specified in the request; or
  843         (h) Is a violation of chapter 896 or similar state or
  844  federal law or any related rule or regulation.
  845         (2) The complaint must contain the statement of facts and a
  846  notice of right to a hearing pursuant to ss. 120.569 and 120.57.
  847         (3) If no hearing is requested within the time allowed by
  848  ss. 120.569 and 120.57, or if a hearing is held and the office
  849  finds that any of the charges are true, the office may enter an
  850  order directing the limited purpose international trust company
  851  representative office or the individual named therein to cease
  852  and desist from engaging in the conduct complained of and to
  853  take corrective action.
  854         (4) If the limited purpose international trust company
  855  representative office or the individual named in such order
  856  fails to respond to the complaint within the time allotted in
  857  ss. 120.569 and 120.57, such failure constitutes a default and
  858  justifies the entry of a cease and desist order.
  859         (5) A contested or default cease and desist order is
  860  effective when reduced to writing and served upon the licensed
  861  limited purpose international trust company representative
  862  office or the individual named therein. An uncontested cease and
  863  desist order is effective as agreed.
  864         (6) If the office finds that conduct described in
  865  subsection (1) has occurred which presents an imminent danger to
  866  the public, it may issue an emergency cease and desist order
  867  requiring the limited purpose international trust company
  868  representative office or individual named therein to immediately
  869  cease and desist from engaging in the conduct complained of and
  870  to take corrective action. The emergency order is effective
  871  immediately upon service of a copy of the order upon the limited
  872  purpose international trust company representative office or
  873  individual named therein and remains effective for 90 days. If
  874  the office begins nonemergency cease and desist proceedings
  875  under subsection (1), the emergency order remains effective
  876  until the conclusion of the proceedings under ss. 120.569 and
  877  120.57.
  878         (7) Subject to its rights under chapter 120, a limited
  879  purpose international trust company representative office shall
  880  have 90 days to wind up its affairs after entry of an order to
  881  cease and desist from operating as a limited purpose
  882  international trust company representative office. During such
  883  time, it may not engage in any of the activities authorized
  884  under s. 663.0625, except to the extent required to provide
  885  notice that it is winding down its affairs in this state and the
  886  name or names and contact information of the persons who may be
  887  contacted for additional information. If, after 90 days, a
  888  limited purpose international trust company representative
  889  office has not provided proof satisfactory to the office that it
  890  has terminated operations, the office may seek an order from the
  891  circuit court for the annulment or dissolution of the company.
  892  Satisfactory proof shall consist of a corporate resolution
  893  authorizing dissolution, a certified copy of articles of
  894  dissolution filed with the Division of Corporations of the
  895  Department of State, or documentation confirming the closing of
  896  the limited purpose international trust company representative
  897  office.
  898         Section 16. Section 663.115, Florida Statutes, is created
  899  to read:
  900         663.115 Discontinuing business.—If a limited purpose
  901  international trust company representative office desires to
  902  discontinue business, it must file with the office a certified
  903  copy of the resolution of the board of directors, or members or
  904  managers of a limited liability company, authorizing that
  905  action. The limited purpose international trust company
  906  representative office shall voluntarily terminate its
  907  registration as a limited purpose international trust company
  908  representative office, whereupon it shall be released from any
  909  fidelity bonds that it maintained pursuant to s. 663.058.
  910         Section 17. Subsection (1) of section 663.12, Florida
  911  Statutes, is amended to read:
  912         663.12 Fees; assessments; fines.—
  913         (1) Each application for a license or registration under
  914  the provisions of this part shall be accompanied by a
  915  nonrefundable filing fee payable to the office in the following
  916  amount:
  917         (a) Ten thousand dollars for establishing a state-chartered
  918  investment company.
  919         (b) Ten thousand dollars for establishing an international
  920  bank agency or branch.
  921         (c) Five thousand dollars for establishing an international
  922  administrative office.
  923         (d) Five thousand dollars for establishing an international
  924  representative office.
  925         (e) Five thousand dollars for establishing an international
  926  trust company representative office or a limited purpose
  927  international trust company representative office.
  928         (f) An amount equal to the initial filing fee for an
  929  application to convert from one type of license to another or
  930  from a registration to a license. The commission may increase
  931  the filing fee for any type of license or registration to an
  932  amount established by rule and calculated in a manner so as to
  933  cover the direct and indirect cost of processing such
  934  applications.
  935         Section 18. This act shall take effect October 1, 2016.

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