Bill Text: FL S1950 | 2021 | Regular Session | Comm Sub
Bill Title: Financial Institutions
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Failed) 2021-04-30 - Died in Rules [S1950 Detail]
Download: Florida-2021-S1950-Comm_Sub.html
Florida Senate - 2021 CS for CS for SB 1950
By the Committees on Judiciary; and Banking and Insurance; and
Senator Gruters
590-03540-21 20211950c2
1 A bill to be entitled
2 An act relating to financial institutions; amending s.
3 120.80, F.S.; providing that the failure of foreign
4 nationals to appear through video conference at
5 certain hearings is grounds for denial of certain
6 applications; amending s. 475.01, F.S.; conforming a
7 cross-reference; creating s. 501.2076, F.S.; providing
8 that the imposition of fees or charges upon consumers
9 for online audit verifications of financial
10 institution accounts is a violation of the Florida
11 Deceptive and Unfair Trade Practices Act; amending s.
12 518.117, F.S.; conforming a cross-reference; amending
13 s. 655.045, F.S.; revising the interval for the Office
14 of Financial Regulation to conduct certain
15 examinations; authorizing the Office of Financial
16 Regulation to delay examinations of financial
17 institutions under certain circumstances; specifying
18 that examination requirements are deemed met under
19 certain circumstances; requiring copies of certain
20 examination reports to be furnished to financial
21 institutions; requiring certain directors to review
22 and acknowledge receipt of such reports; amending s.
23 655.414, F.S.; revising the entities that may assume
24 liabilities, and the liabilities that may be assumed,
25 according to certain procedures, conditions, and
26 limitations; specifying the basis for calculating
27 percentages of assets or liabilities; amending s.
28 655.50, F.S.; revising the definition of the term
29 “financial institution”; amending s. 657.021, F.S.;
30 requiring credit unions to submit specified
31 information to the office after certain meetings;
32 repealing s. 657.028(6), F.S., relating to credit
33 union board member, committee member, and officer
34 election and appointment record reporting
35 requirements; amending s. 658.12, F.S.; defining the
36 term “target market”; amending s. 658.20, F.S.;
37 requiring the office, upon receiving applications for
38 authority to organize a bank or trust company, to
39 investigate the need for new bank facilities in a
40 primary service area or target market and the ability
41 of such service area or target market to support new
42 and existing bank facilities; amending s. 658.21,
43 F.S.; revising financial institution application
44 approval requirements to include consideration of
45 target market conditions; deleting a requirement that
46 certain proposed financial institution presidents or
47 chief executive officers have certain experience
48 within a specified timeframe; amending s. 658.28,
49 F.S.; requiring a person or group to notify the office
50 within a specified timeframe upon acquiring a
51 controlling interest in a bank or trust company in
52 this state; amending s. 658.2953, F.S.; defining the
53 term “de novo branch”; amending s. 662.1225, F.S.;
54 revising the type of institution with which certain
55 family trust companies are required to maintain a
56 deposit account; amending s. 662.128, F.S.; revising
57 the timeframe for filing renewal applications for
58 certain family trust companies; amending s. 663.07,
59 F.S.; revising the banks with which international bank
60 agencies or branches shall maintain certain deposits;
61 amending s. 663.532, F.S.; revising references to
62 lists of jurisdictions used for qualifying qualified
63 limited service affiliates; requiring limited service
64 affiliates to suspend certain permissible activities
65 under certain circumstances; specifying that such
66 suspensions remain in effect until certain conditions
67 are met; amending s. 736.0802, F.S.; conforming a
68 cross-reference; providing an effective date.
69
70 Be It Enacted by the Legislature of the State of Florida:
71
72 Section 1. Paragraph (a) of subsection (3) of section
73 120.80, Florida Statutes, is amended to read:
74 120.80 Exceptions and special requirements; agencies.—
75 (3) OFFICE OF FINANCIAL REGULATION.—
76 (a) Notwithstanding s. 120.60(1), in proceedings for the
77 issuance, denial, renewal, or amendment of a license or approval
78 of a merger pursuant to title XXXVIII:
79 1.a. The Office of Financial Regulation of the Financial
80 Services Commission shall have published in the Florida
81 Administrative Register notice of the application within 21 days
82 after receipt.
83 b. Within 21 days after publication of notice, any person
84 may request a hearing. Failure to request a hearing within 21
85 days after notice constitutes a waiver of any right to a
86 hearing. The Office of Financial Regulation or an applicant may
87 request a hearing at any time prior to the issuance of a final
88 order. Hearings shall be conducted pursuant to ss. 120.569 and
89 120.57, except that the Financial Services Commission shall by
90 rule provide for participation by the general public.
91 2. Should a hearing be requested as provided by sub
92 subparagraph 1.b., the applicant or licensee shall publish at
93 its own cost a notice of the hearing in a newspaper of general
94 circulation in the area affected by the application. The
95 Financial Services Commission may by rule specify the format and
96 size of the notice.
97 3. Notwithstanding s. 120.60(1), and except as provided in
98 subparagraph 4., an application for license for a new bank, new
99 trust company, new credit union, new savings and loan
100 association, or new licensed family trust company must be
101 approved or denied within 180 days after receipt of the original
102 application or receipt of the timely requested additional
103 information or correction of errors or omissions. An application
104 for such a license or for acquisition of such control which is
105 not approved or denied within the 180-day period or within 30
106 days after conclusion of a public hearing on the application,
107 whichever is later, shall be deemed approved subject to the
108 satisfactory completion of conditions required by statute as a
109 prerequisite to license and approval of insurance of accounts
110 for a new bank, a new savings and loan association, a new credit
111 union, or a new licensed family trust company by the appropriate
112 insurer.
113 4. In the case of an application for license to establish a
114 new bank, trust company, or capital stock savings association in
115 which a foreign national proposes to own or control 10 percent
116 or more of any class of voting securities, and in the case of an
117 application by a foreign national for approval to acquire
118 control of a bank, trust company, or capital stock savings
119 association, the Office of Financial Regulation shall request
120 that a public hearing be conducted pursuant to ss. 120.569 and
121 120.57. Notice of such hearing shall be published by the
122 applicant as provided in subparagraph 2. The failure of such
123 foreign national to appear personally at or participate through
124 video conference in the hearing shall be grounds for denial of
125 the application. Notwithstanding s. 120.60(1) and subparagraph
126 3., every application involving a foreign national shall be
127 approved or denied within 1 year after receipt of the original
128 application or any timely requested additional information or
129 the correction of any errors or omissions, or within 30 days
130 after the conclusion of the public hearing on the application,
131 whichever is later.
132 Section 2. Subsection (4) of section 475.01, Florida
133 Statutes, is amended to read:
134 475.01 Definitions.—
135 (4) A broker acting as a trustee of a trust created under
136 chapter 689 is subject to the provisions of this chapter unless
137 the trustee is a bank, state or federal association, or trust
138 company possessing trust powers as defined in s. 658.12(24) s.
139 658.12(23).
140 Section 3. Section 501.2076, Florida Statutes, is created
141 to read:
142 501.2076 Violations involving consumer financial
143 institution account fees.—The imposition of a fee or other
144 charge by a third party agent or entity directly or indirectly
145 upon a consumer for an online audit verification of an account
146 maintained by a financial institution as defined in s. 655.005
147 or of the associated balance of such account is a violation of
148 this part.
149 Section 4. Section 518.117, Florida Statutes, is amended to
150 read:
151 518.117 Permissible investments of fiduciary funds.—A
152 fiduciary that is authorized by lawful authority to engage in
153 trust business as defined in s. 658.12(21) s. 658.12(20) may
154 invest fiduciary funds in accordance with s. 660.417 so long as
155 the investment otherwise complies with this chapter.
156 Section 5. Paragraph (a) of subsection (1) and subsection
157 (4) of section 655.045, Florida Statutes, are amended, and
158 paragraph (f) is added to subsection (1) of that section, to
159 read:
160 655.045 Examinations, reports, and internal audits;
161 penalty.—
162 (1) The office shall conduct an examination of the
163 condition of each state financial institution at least every 18
164 months. The office may conduct more frequent examinations based
165 upon the risk profile of the financial institution, prior
166 examination results, or significant changes in the institution
167 or its operations. The office may use continuous, phase, or
168 other flexible scheduling examination methods for very large or
169 complex state financial institutions and financial institutions
170 owned or controlled by a multi-financial institution holding
171 company. The office shall consider examination guidelines from
172 federal regulatory agencies in order to facilitate, coordinate,
173 and standardize examination processes.
174 (a) The office may accept an examination of a state
175 financial institution made by an appropriate federal regulatory
176 agency or may conduct a joint or concurrent examination of the
177 institution with the federal agency. If the office accepts an
178 examination report in accordance with this paragraph, However,
179 at least once during each 36-month period beginning July 1,
180 2014, the office shall conduct the subsequent an examination of
181 each state financial institution in a manner that allows the
182 preparation of a complete examination report not subject to the
183 right of a federal or other non-Florida entity to limit access
184 to the information contained therein. The office may furnish a
185 copy of all examinations or reviews made of financial
186 institutions or their affiliates to the state or federal
187 agencies participating in the examination, investigation, or
188 review, or as otherwise authorized under s. 655.057.
189 (f) In coordinating an examination required under this
190 section, if a federal agency suspends or cancels a previously
191 scheduled examination of a financial institution, the office has
192 an additional 90 days to meet the examination requirement of
193 this section. In such case, the requirement is deemed met by the
194 federal agency conducting the examination or upon the office
195 conducting the examination instead.
196 (4) A copy of the report of each examination must be
197 furnished to the financial institution entity examined and
198 presented to the board of directors at its next regular or
199 special meeting. Each director shall review the report and
200 acknowledge receipt of the report and such review by signing and
201 dating the prescribed signature page of the report and returning
202 a copy of the signed page to the office.
203 Section 6. Section 655.414, Florida Statutes, is amended to
204 read:
205 655.414 Acquisition of assets; assumption of liabilities.
206 With prior approval of the office and upon such conditions as
207 the commission prescribes by rule, a financial institution
208 entity may acquire 50 percent or more all or substantially all
209 of the assets or liabilities of, or a combination of assets and
210 liabilities of, or assume all or any part of the liabilities of,
211 any other financial institution in accordance with the
212 procedures and subject to the following conditions and
213 limitations:
214 (1) CALCULATION OF ASSET OR LIABILITY PERCENTAGES.
215 Percentages of assets or liabilities must be calculated based on
216 the most recent quarterly reporting date.
217 (2) ADOPTION OF A PLAN.—The board of directors of the
218 acquiring or assuming financial entity and the board of
219 directors of the transferring financial institution must adopt,
220 by a majority vote, a plan for such acquisition, assumption, or
221 sale on terms that are mutually agreed upon. The plan must
222 include:
223 (a) The names and types of financial institutions involved.
224 (b) A statement setting forth the material terms of the
225 proposed acquisition, assumption, or sale, including the plan
226 for disposition of all assets and liabilities not subject to the
227 plan.
228 (c) A provision for liquidation, if applicable, of the
229 transferring financial institution upon execution of the plan,
230 or a provision setting forth the business plan for the continued
231 operation of each financial institution after the execution of
232 the plan.
233 (d) A statement that the entire transaction is subject to
234 written approval of the office and approval of the members or
235 stockholders of the transferring financial institution.
236 (e) If a stock financial institution is the transferring
237 financial institution and the proposed sale is not for cash, a
238 clear and concise statement that dissenting stockholders of the
239 institution are entitled to the rights set forth in s. 658.44(4)
240 and (5).
241 (f) The proposed effective date of the acquisition,
242 assumption, or sale and such other information and provisions as
243 necessary to execute the transaction or as required by the
244 office.
245 (3)(2) APPROVAL OF OFFICE.—Following approval by the board
246 of directors of each participating financial institution, the
247 plan, together with certified copies of the authorizing
248 resolutions adopted by the boards and a completed application
249 with a nonrefundable filing fee, must be forwarded to the office
250 for approval or disapproval. The office shall approve the plan
251 of acquisition, assumption, or sale if it appears that:
252 (a) The resulting financial entity or entities would have
253 an adequate capital structure in relation to their activities
254 and their deposit liabilities;
255 (b) The plan is fair to all parties; and
256 (c) The plan is not contrary to the public interest.
257
258 If the office disapproves the plan, it shall state its
259 objections and give the parties an opportunity to amend the plan
260 to overcome such objections.
261 (4)(3) VOTE OF MEMBERS OR STOCKHOLDERS.—If the office
262 approves the plan, it may be submitted to the members or
263 stockholders of the transferring financial institution at an
264 annual meeting or at a special meeting called to consider such
265 action. Upon a majority vote of the total number of votes
266 eligible to be cast or, in the case of a credit union, a
267 majority vote of the members present at the meeting, the plan is
268 adopted.
269 (5)(4) ADOPTED PLAN; CERTIFICATE; ABANDONMENT.—
270 (a) If the plan is adopted by the members or stockholders
271 of the transferring financial institution, the president or vice
272 president and the cashier, manager, or corporate secretary of
273 such institution shall submit the adopted plan to the office,
274 together with a certified copy of the resolution of the members
275 or stockholders approving it.
276 (b) Upon receipt of the certified copies and evidence that
277 the participating financial institutions have complied with all
278 applicable state and federal law and rules, the office shall
279 certify, in writing, to the participants that the plan has been
280 approved.
281 (c) Notwithstanding approval of the members or stockholders
282 or certification by the office, the board of directors of the
283 transferring financial institution may abandon such a
284 transaction without further action or approval by the members or
285 stockholders, subject to the rights of third parties under any
286 contracts relating thereto.
287 (6)(5) FEDERALLY CHARTERED OR OUT-OF-STATE INSTITUTION AS A
288 PARTICIPANT.—If one of the participants in a transaction under
289 this section is a federally chartered financial institution or
290 an out-of-state financial institution, all participants must
291 also comply with requirements imposed by federal and other state
292 law for the acquisition, assumption, or sale and provide
293 evidence of such compliance to the office as a condition
294 precedent to the issuance of a certificate authorizing the
295 transaction; however, if the purchasing or assuming financial
296 institution is a federal or out-of-state state-chartered
297 financial institution and the transferring state financial
298 entity will be liquidated, approval of the office is not
299 required.
300 (7)(6) STOCK INSTITUTION ACQUIRING MUTUAL INSTITUTION.—A
301 mutual financial institution may not sell 50 percent or more all
302 or substantially all of its assets to a stock financial
303 institution until it has first converted into a capital stock
304 financial institution in accordance with s. 665.033(1) and (2).
305 For this purpose, references in s. 665.033(1) and (2) to
306 associations also refer to credit unions but, in the case of a
307 credit union, the provision concerning proxy statements does not
308 apply.
309 Section 7. Paragraph (c) of subsection (3) of section
310 655.50, Florida Statutes, is amended to read:
311 655.50 Florida Control of Money Laundering and Terrorist
312 Financing in Financial Institutions Act.—
313 (3) As used in this section, the term:
314 (c) “Financial institution” has the same meaning as in s.
315 655.005(1)(i), excluding an international representative office,
316 an international administrative office, or a qualified limited
317 service affiliate means a financial institution, as defined in
318 31 U.S.C. s. 5312, as amended, including a credit card bank,
319 located in this state.
320 Section 8. Present subsections (2) through (8) of section
321 657.021, Florida Statutes, are redesignated as subsections (3)
322 through (9), respectively, and a new subsection (2) is added to
323 that section, to read:
324 657.021 Board of directors; executive committee
325 responsibilities; oaths; reports to the office.—
326 (2) Within the 30 days following the annual meeting or any
327 other meeting at which any director, officer, member of the
328 supervisory or audit committee, member of the credit committee,
329 or credit manager is elected or appointed, the credit union
330 shall submit to the office the names and residence addresses of
331 the elected person or persons on a form adopted by the
332 commission and provided by the office.
333 Section 9. Subsection (6) of section 657.028 is repealed.
334 Section 10. Present subsections (20) through (24) of
335 section 658.12, Florida Statutes, are redesignated as
336 subsections (21) through (25), respectively, and a new
337 subsection (20) is added to that section, to read:
338 658.12 Definitions.—Subject to other definitions contained
339 in the financial institutions codes and unless the context
340 otherwise requires:
341 (20) “Target market” means the group of clients or
342 potential clients from whom a bank or proposed bank expects to
343 draw deposits and to whom a bank focuses or intends to focus its
344 marketing efforts. The term also means the group of clients or
345 potential clients from whom a trust company, a trust department
346 of a bank or association, a proposed trust company, or a
347 proposed trust department of a bank or an association expects to
348 draw its fiduciary accounts and to whom it focuses or intends to
349 focus its marketing efforts.
350 Section 11. Paragraphs (b) and (c) of subsection (1) of
351 section 658.20, Florida Statutes, are amended to read:
352 658.20 Investigation by office.—
353 (1) Upon the filing of an application, the office shall
354 make an investigation of:
355 (b) The need for bank or trust facilities or additional
356 bank or trust facilities, as the case may be, in the primary
357 service area where the proposed bank or trust company is to be
358 located or in the target market that the bank or trust company
359 intends to engage in business.
360 (c) The ability of the primary service area or target
361 market to support the proposed bank or trust company and all
362 other existing bank or trust facilities that serve the same
363 primary service area or target market in the primary service
364 area.
365 Section 12. Subsections (1) and (4) of section 658.21,
366 Florida Statutes, are amended to read:
367 658.21 Approval of application; findings required.—The
368 office shall approve the application if it finds that:
369 (1) Local and target market conditions indicate reasonable
370 promise of successful operation for the proposed state bank or
371 trust company. In determining whether an applicant meets the
372 requirements of this subsection, the office shall consider all
373 materially relevant factors, including:
374 (a) The purpose, objectives, and business philosophy of the
375 proposed state bank or trust company.
376 (b) The projected financial performance of the proposed
377 bank or trust company.
378 (c) The feasibility of the proposed bank or trust company,
379 as stated in the business plan, particularly with respect to
380 asset and liability growth and management.
381 (4) The proposed officers have sufficient financial
382 institution experience, ability, standing, and reputation and
383 the proposed directors have sufficient business experience,
384 ability, standing, and reputation to indicate reasonable promise
385 of successful operation, and none of the proposed officers or
386 directors has been convicted of, or pled guilty or nolo
387 contendere to, any violation of s. 655.50, relating to the
388 control of money laundering and terrorist financing; chapter
389 896, relating to offenses related to financial institutions; or
390 similar state or federal law. At least two of the proposed
391 directors who are not also proposed officers must have had at
392 least 1 year of direct experience as an executive officer,
393 regulator, or director of a financial institution within the 5
394 years before the date of the application. However, if the
395 applicant demonstrates that at least one of the proposed
396 directors has very substantial experience as an executive
397 officer, director, or regulator of a financial institution more
398 than 5 years before the date of the application, the office may
399 modify the requirement and allow the applicant to have only one
400 director who has direct financial institution experience within
401 the last 5 years. The proposed president or chief executive
402 officer must have had at least 1 year of direct experience as an
403 executive officer, director, or regulator of a financial
404 institution within the last 5 years.
405 Section 13. Present subsections (2), (3), and (4) of
406 section 658.28, Florida Statutes, are redesignated as
407 subsections (3), (4), and (5), respectively, and a new
408 subsection (2) is added to that section, to read:
409 658.28 Acquisition of control of a bank or trust company.—
410 (2) A person or a group of persons which acquires a
411 controlling interest as contemplated by this section, either
412 directly or indirectly, in a state bank or state trust company
413 through probate or trust shall notify the office within 90 days
414 after acquiring such interest. Such an interest does not give
415 rise to a presumption of control until the person or group of
416 persons votes the shares or the office has issued a certificate
417 of approval in response to an application pursuant to subsection
418 (1).
419 Section 14. Present paragraphs (b) and (c) of subsection
420 (11) of section 658.2953, Florida Statutes, are redesignated as
421 paragraphs (c) and (d), respectively, and a new paragraph (b) is
422 added to that subsection, to read:
423 658.2953 Interstate branching.—
424 (11) DE NOVO INTERSTATE BRANCHING BY STATE BANKS.—
425 (b) “De novo branch” means a branch of a bank which is
426 originally established by the bank as a branch and does not
427 become a branch of such bank as a result of:
428 1. The acquisition by the bank of a depository institution
429 or a branch of a depository institution; or
430 2. The conversion, merger, or consolidation of any such
431 institution or branch.
432 Section 15. Paragraph (d) of subsection (1) of section
433 662.1225, Florida Statutes, is amended to read:
434 662.1225 Requirements for a family trust company, licensed
435 family trust company, or foreign licensed family trust company.—
436 (1) A family trust company or a licensed family trust
437 company shall maintain:
438 (d) A deposit account at a bank insured by the Federal
439 Deposit Insurance Corporation or a credit union insured by the
440 National Credit Union Administration and located in the United
441 States with a state-chartered or national financial institution
442 that has a principal or branch office in this state.
443 Section 16. Subsection (1) of section 662.128, Florida
444 Statutes, is amended to read:
445 662.128 Annual renewal.—
446 (1) Within 45 days after the end of each calendar year, A
447 family trust company, licensed family trust company, or foreign
448 licensed family trust company shall file an its annual renewal
449 application with the office on an annual basis no later than 45
450 days after the anniversary of the filing of either the initial
451 application or the prior year’s renewal application.
452 Section 17. Subsection (1) of section 663.07, Florida
453 Statutes, is amended to read:
454 663.07 Asset maintenance or capital equivalency.—
455 (1) Each international bank agency and international branch
456 shall:
457 (a) Maintain with one or more banks insured by the Federal
458 Deposit Insurance Corporation and located within the United
459 States in this state, in such amounts as the office specifies,
460 evidence of dollar deposits or investment securities of the type
461 that may be held by a state bank for its own account pursuant to
462 s. 658.67. The aggregate amount of dollar deposits and
463 investment securities for an international bank agency or
464 international branch shall, at a minimum, equal the greater of:
465 1. Four million dollars; or
466 2. Seven percent of the total liabilities of the
467 international bank agency or international branch excluding
468 accrued expenses and amounts due and other liabilities to
469 affiliated branches, offices, agencies, or entities; or
470 (b) Maintain other appropriate reserves, taking into
471 consideration the nature of the business being conducted by the
472 international bank agency or international branch.
473
474 The commission shall prescribe, by rule, the deposit,
475 safekeeping, pledge, withdrawal, recordkeeping, and other
476 arrangements for funds and securities maintained under this
477 subsection. The deposits and securities used to satisfy the
478 capital equivalency requirements of this subsection shall be
479 held, to the extent feasible, in one or more state or national
480 banks located in this state or in a federal reserve bank.
481 Section 18. Present subsections (4), (5), and (6) of
482 section 663.532, Florida Statutes, are redesignated as
483 subsections (5), (6), and (7), respectively, a new subsection
484 (4) is added to that section, and paragraphs (i) and (j) of
485 subsection (1) of that section are amended, to read:
486 663.532 Qualification.—
487 (1) To qualify as a qualified limited service affiliate
488 under this part, a proposed qualified limited service affiliate
489 must file a written notice with the office, in the manner and on
490 a form prescribed by the commission. Such written notice must
491 include:
492 (i) A declaration under penalty of perjury signed by the
493 executive officer, manager, or managing member of the proposed
494 qualified limited service affiliate that, to the best of his or
495 her knowledge:
496 1. No employee, representative, or agent provides, or will
497 provide, banking services; promotes or sells, or will promote or
498 sell, investments; or accepts, or will accept, custody of
499 assets.
500 2. No employee, representative, or agent acts, or will act,
501 as a fiduciary in this state, which includes, but is not limited
502 to, accepting the fiduciary appointment, executing the fiduciary
503 documents that create the fiduciary relationship, or making
504 discretionary decisions regarding the investment or distribution
505 of fiduciary accounts.
506 3. The jurisdiction of the international trust entity or
507 its offices, subsidiaries, or any affiliates that are directly
508 involved in or facilitate the financial services functions,
509 banking, or fiduciary activities of the international trust
510 entity is not listed on the Financial Action Task Force list of
511 High-Risk Jurisdictions subject to a Call for Action or list of
512 Jurisdictions Under Increased Monitoring Public Statement or on
513 its list of jurisdictions with deficiencies in anti-money
514 laundering or counterterrorism.
515 (j) For each international trust entity that the proposed
516 qualified limited service affiliate will provide services for in
517 this state, the following:
518 1. The name of the international trust entity;
519 2. A list of the current officers and directors of the
520 international trust entity;
521 3. Any country where the international trust entity is
522 organized or authorized to do business;
523 4. The name of the home-country regulator;
524 5. Proof that the international trust entity has been
525 authorized by charter, license, or similar authorization by its
526 home-country regulator to engage in trust business;
527 6. Proof that the international trust entity lawfully
528 exists and is in good standing under the laws of the
529 jurisdiction where it is chartered, licensed, or organized;
530 7. A statement that the international trust entity is not
531 in bankruptcy, conservatorship, receivership, liquidation, or in
532 a similar status under the laws of any country;
533 8. Proof that the international trust entity is not
534 operating under the direct control of the government or the
535 regulatory or supervisory authority of the jurisdiction of its
536 incorporation, through government intervention or any other
537 extraordinary actions, and confirmation that it has not been in
538 such a status or under such control at any time within the prior
539 3 years;
540 9. Proof and confirmation that the proposed qualified
541 limited service affiliate is affiliated with the international
542 trust entities provided in the notice; and
543 10. Proof that the jurisdictions where the international
544 trust entity or its offices, subsidiaries, or any affiliates
545 that are directly involved in or that facilitate the financial
546 services functions, banking, or fiduciary activities of the
547 international trust entity are not listed on the Financial
548 Action Task Force list of High-Risk Jurisdictions subject to a
549 Call for Action or list of Jurisdictions Under Increased
550 Monitoring Public Statement or on its list of jurisdictions with
551 deficiencies in anti-money laundering or counterterrorism.
552
553 The proposed qualified limited service affiliate may provide
554 additional information in the form of exhibits when attempting
555 to satisfy any of the qualification requirements. All
556 information that the proposed qualified limited service
557 affiliate desires to present to support the written notice must
558 be submitted with the notice.
559 (4) The permissible activities provided in s. 663.531
560 relating to a specific jurisdiction must be suspended by the
561 qualified limited service affiliate if either the qualified
562 limited service affiliate or the office becomes aware that the
563 jurisdiction of an international trust entity served by the
564 qualified limited service affiliate is included on the Financial
565 Action Task Force list of High-Risk Jurisdictions subject to a
566 Call for Action or list of Jurisdictions Under Increased
567 Monitoring. Suspensions pursuant to this subsection must remain
568 in effect until the jurisdiction is removed from the Financial
569 Action Task Force list of High Risk Jurisdictions subject to a
570 Call for Action or list of Jurisdictions Under Increased
571 Monitoring.
572 Section 19. Paragraph (a) of subsection (5) of section
573 736.0802, Florida Statutes, is amended to read:
574 736.0802 Duty of loyalty.—
575 (5)(a) An investment by a trustee authorized by lawful
576 authority to engage in trust business, as defined in s.
577 658.12(21) s. 658.12(20), in investment instruments, as defined
578 in s. 660.25(6), that are owned or controlled by the trustee or
579 its affiliate, or from which the trustee or its affiliate
580 receives compensation for providing services in a capacity other
581 than as trustee, is not presumed to be affected by a conflict
582 between personal and fiduciary interests provided the investment
583 otherwise complies with chapters 518 and 660 and the trustee
584 complies with the requirements of this subsection.
585 Section 20. This act shall take effect July 1, 2021.
