PCS for HB 431 (2022): An act relating to financial institutions
Summary
PCS for HB 431 (2022) is a bill to be entitled an act relating to financial institutions. Its title lists amendments to s. 655.045, F.S., on when the Office of Financial Regulation must conduct examinations, and to s. 655.414, F.S., on which entities may acquire liabilities and assets. It also lists definitions of "target market" and "de novo branch" and a repeal of s. 657.028(6), F.S. Section 1 amends s. 120.80, F.S., and states that the failure of a foreign national to appear personally at or to participate through video conference in a hearing is grounds for denial of the application. Section 20 states that the act takes effect July 1, 2022.
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“PCS for HB 431 (2022): An act relating to financial institutions.”
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
PCS for HB 431 2022
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 participate through video conference in
5 certain hearings is grounds for denial of certain
6 applications; amending s. 475.01, F.S.; conforming a
7 cross-reference; amending s. 518.117, F.S.; conforming
8 a cross-reference; amending s. 655.045, F.S.; revising
9 the circumstances under which the Office of Financial
10 Regulation is required to conduct certain
11 examinations; authorizing the office to delay
12 examinations of state financial institutions under
13 certain circumstances; specifying that examination
14 requirements are deemed met under certain
15 circumstances; requiring copies of certain examination
16 reports to be furnished to state financial
17 institutions; requiring certain directors to review
18 such reports and acknowledge receipt of such reports;
19 amending s. 655.414, F.S.; revising the entities that
20 may acquire liabilities and assets, and the
21 liabilities and assets that may be acquired, according
22 to certain procedures, conditions, and limitations;
23 specifying the basis for calculating percentages of
24 assets or liabilities; revising the assets a mutual
25 financial institution may sell, subject to certain
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26 conditions; amending s. 655.50, F.S.; revising the
27 definition of the term "financial institution";
28 amending s. 657.021, F.S.; requiring credit unions to
29 submit specified information to the office after
30 certain meetings; repealing s. 657.028(6), F.S.,
31 relating to credit union board member, committee
32 member, and officer election and appointment record
33 reporting requirements; amending s. 658.12, F.S.;
34 defining the term "target market"; amending s. 658.20,
35 F.S.; requiring the office, upon receiving
36 applications for authority to organize a bank or trust
37 company, to investigate the need for new bank
38 facilities in a primary service area or for a target
39 market and the ability of such service area or target
40 market to support new and existing bank facilities;
41 amending s. 658.21, F.S.; revising financial
42 institution application approval requirements to
43 include consideration of target market conditions;
44 authorizing the office to waive a requirement that
45 certain proposed financial institution presidents or
46 chief executive officers have certain experience
47 within a specified timeframe; amending s. 658.28,
48 F.S.; requiring a person or group to notify the office
49 within a specified timeframe upon acquiring a
50 controlling interest in a state bank or state trust
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51 company; amending s. 658.2953, F.S.; defining the term
52 "de novo branch"; amending s. 662.1225, F.S.; revising
53 the type of institution with which certain family
54 trust companies are required to maintain a deposit
55 account; amending s. 662.128, F.S.; revising the
56 timeframe for filing renewal applications for certain
57 family trust companies; amending s. 663.07, F.S.;
58 revising the banks with which international bank
59 agencies or branches shall maintain certain deposits
60 or investment securities; amending s. 663.532, F.S.;
61 revising references to lists of jurisdictions used for
62 qualifying qualified limited service affiliates;
63 requiring limited service affiliates to suspend
64 certain permissible activities under certain
65 circumstances; specifying that such suspensions remain
66 in effect until certain conditions are met; amending
67 s. 736.0802, F.S.; conforming a cross-reference;
68 reenacting s. 658.165(1), F.S., relating to banker's
69 banks, for the purpose of incorporating amendments
70 made by the act; providing an effective date.
71
72 Be It Enacted by the Legislature of the State of Florida:
73
74 Section 1. Paragraph (a) of subsection (3) of section
75 120.80, Florida Statutes, is amended to read:
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76 120.80 Exceptions and special requirements; agencies.—
77 (3) OFFICE OF FINANCIAL REGULATION.—
78 (a) Notwithstanding s. 120.60(1), in proceedings for the
79 issuance, denial, renewal, or amendment of a license or approval
80 of a merger pursuant to title XXXVIII:
81 1.a. The Office of Financial Regulation of the Financial
82 Services Commission shall have published in the Florida
83 Administrative Register notice of the application within 21 days
84 after receipt.
85 b. Within 21 days after publication of notice, any person
86 may request a hearing. Failure to request a hearing within 21
87 days after notice constitutes a waiver of any right to a
88 hearing. The Office of Financial Regulation or an applicant may
89 request a hearing at any time prior to the issuance of a final
90 order. Hearings shall be conducted pursuant to ss. 120.569 and
91 120.57, except that the Financial Services Commission shall by
92 rule provide for participation by the general public.
93 2. Should a hearing be requested as provided by sub-
94 subparagraph 1.b., the applicant or licensee shall publish at
95 its own cost a notice of the hearing in a newspaper of general
96 circulation in the area affected by the application. The
97 Financial Services Commission may by rule specify the format and
98 size of the notice.
99 3. Notwithstanding s. 120.60(1), and except as provided in
100 subparagraph 4., an application for license for a new bank, new
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101 trust company, new credit union, new savings and loan
102 association, or new licensed family trust company must be
103 approved or denied within 180 days after receipt of the original
104 application or receipt of the timely requested additional
105 information or correction of errors or omissions. An application
106 for such a license or for acquisition of such control which is
107 not approved or denied within the 180-day period or within 30
108 days after conclusion of a public hearing on the application,
109 whichever is later, shall be deemed approved subject to the
110 satisfactory completion of conditions required by statute as a
111 prerequisite to license and approval of insurance of accounts
112 for a new bank, a new savings and loan association, a new credit
113 union, or a new licensed family trust company by the appropriate
114 insurer.
115 4. In the case of an application for license to establish
116 a new bank, trust company, or capital stock savings association
117 in which a foreign national proposes to own or cont rol 10
118 percent or more of any class of voting securities, and in the
119 case of an application by a foreign national for approval to
120 acquire control of a bank, trust company, or capital stock
121 savings association, the Office of Financial Regulation shall
122 request that a public hearing be conducted pursuant to ss.
123 120.569 and 120.57. Notice of such hearing shall be published by
124 the applicant as provided in subparagraph 2. The failure of such
125 foreign national to appear personally at or to participate
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126 through video conference in the hearing shall be grounds for
127 denial of the application. Notwithstanding s. 120.60(1) and
128 subparagraph 3., every application involving a foreign national
129 shall be approved or denied within 1 year after receipt of the
130 original application or any timely requested additional
131 information or the correction of any errors or omissions, or
132 within 30 days after the conclusion of the public hearing on the
133 application, whichever is later.
134 Section 2. Subsection (4) of section 475.01, Florida
135 Statutes, is amended to read:
136 475.01 Definitions.—
137 (4) A broker acting as a trustee of a trust created under
138 chapter 689 is subject to the provisions of this chapter unless
139 the trustee is a bank, state or federal association, or trust
140 company possessing trust powers as defined in s. 658.12 s.
141 658.12(23).
142 Section 3. Section 518.117, Florida Statutes, is amended
143 to read:
144 518.117 Permissible investments of fiduciary funds.—A
145 fiduciary that is authorized by lawful authority to engage in
146 trust business as defined in s. 658.12 s. 658.12(20) may invest
147 fiduciary funds in accordance with s. 660.417 so long as the
148 investment otherwise complies with this chapter.
149 Section 4. Paragraph (a) of subsection (1) and subsection
150 (4) of section 655.045, Florida Statutes, are amended, and
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151 paragraph (f) is added to subsection (1) of that section, to
152 read:
153 655.045 Examinations, reports, and internal audits;
154 penalty.—
155 (1) The office shall conduct an examination of the
156 condition of each state financial institution at least every 18
157 months. The office may conduct more frequent examinations based
158 upon the risk profile of the financial institution, prior
159 examination results, or significant changes in the institution
160 or its operations. The office may use continuous, phase, or
161 other flexible scheduling examination methods for very large or
162 complex state financial institutions and financial institutions
163 owned or controlled by a multi-financial institution holding
164 company. The office shall consider examination guidelines from
165 federal regulatory agencies in order to facilitate, coordinate,
166 and standardize examination processes.
167 (a) The office may accept an examination of a state
168 financial institution made by an appropriate federal regulatory
169 agency or may conduct a joint or concurrent examination of the
170 institution with the federal agency. However, if the office
171 accepts an examination in accordance with this paragraph, the
172 office shall conduct at least once during each 36-month period
173 beginning July 1, 2023 2014, a subsequent the office shall
174 conduct an examination of each state financial institution in a
175 manner that allows the preparation of a complete examination
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176 report not subject to the right of a federal or other non-
177 Florida entity to limit access to the information contained
178 therein. The office may furnish a copy of all examinations or
179 reviews made of financial institutions or their affiliates to
180 the state or federal agencies participating in the examination,
181 investigation, or review, or as otherwise authorized under s.
182 655.057.
183 (f) In coordinating an examination required under this
184 section, if a federal agency suspends or cancels a previously
185 scheduled examination of a state financial institutio n, the
186 office has an additional 90 days to meet the examination
187 requirement of this section. In such case, the requirement is
188 deemed met by the federal agency conducting the examination or
189 upon the office conducting the examination instead.
190 (4) A copy of the report of each examination must be
191 furnished to the state financial institution entity examined and
192 presented to the board of directors at its next regular or
193 special meeting. Each director shall review the report and
194 acknowledge receipt of the report and such review by signing and
195 dating the prescribed signature page of the report and returning
196 a copy of the signed page to the office.
197 Section 5. Section 655.414, Florida Statutes, is amended
198 to read:
199 655.414 Acquisition of assets; assumption of liabilities.—
200 With prior approval of the office, and upon such conditions as
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201 the commission prescribes by rule, a financial institution
202 entity may acquire 50 percent or more all or substantially all
203 of the assets of, liabilities of, or a combination of assets and
204 or assume all or any part of the liabilities of, any other
205 financial institution in accordance with the procedures and
206 subject to the following conditions and limitations:
207 (1) CALCULATION OF ASSET OR LIABILITY PERCENTAGES.—
208 Percentages of assets or liabilities must be calculated based on
209 the most recent quarterly reporting date.
210 (2) ADOPTION OF A PLAN.—The board of directors of the
211 acquiring or assuming financial entity and the board of
212 directors of the transferring financial institution must adopt,
213 by a majority vote, a plan for such acquisition, assumption, or
214 sale on terms that are mutually agreed upon. The plan must
215 include:
216 (a) The names and types of financial institutions
217 involved.
218 (b) A statement setting forth the material terms of the
219 proposed acquisition, assumption, or sale, including the plan
220 for disposition of all assets and liabilities not subject to the
221 plan.
222 (c) A provision for liquidation, if applicable, of the
223 transferring financial institution upon execution of the plan,
224 or a provision setting forth the business plan for the continued
225 operation of each financial institution after the execution of
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226 the plan.
227 (d) A statement that the entire transaction is subject to
228 written approval of the office and approval of the members or
229 stockholders of the transferring financial institution.
230 (e) If a stock financial institution is the transferring
231 financial institution and the proposed sale is not for cash, a
232 clear and concise statement that dissenting stockholders of the
233 institution are entitled to the rights set forth in s. 658.44(4)
234 and (5).
235 (f) The proposed effective date of the acquisition,
236 assumption, or sale and such other information and provisions as
237 necessary to execute the transaction or as required by the
238 office.
239 (3)(2) APPROVAL OF OFFICE.—Following approval by the board
240 of directors of each participating financial institution, the
241 plan, together with certified copies of the authorizing
242 resolutions adopted by the boards and a completed application
243 with a nonrefundable filing fee, must be forwarded to the office
244 for approval or disapproval. The office shall approve the plan
245 of acquisition, assumption, or sale if it appears that:
246 (a) The resulting financial entity or entities would have
247 an adequate capital structure in relation to their activities
248 and their deposit liabilities;
249 (b) The plan is fair to all parties; and
250 (c) The plan is not contrary to the public interest.
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251
252 If the office disapproves the plan, it shall state its
253 objections and give the parties an opportunity to amend the plan
254 to overcome such objections.
255 (4)(3) VOTE OF MEMBERS OR STOCKHOLDERS.—If the office
256 approves the plan, it may be submitted to the members or
257 stockholders of the transferring financial institution at an
258 annual meeting or at a special meeting called to consider such
259 action. Upon a majority vote of the total number of votes
260 eligible to be cast or, in the case of a credit union, a
261 majority vote of the members present at the meeting, the plan is
262 adopted.
263 (5)(4) ADOPTED PLAN; CERTIFICATE; ABANDONMENT.—
264 (a) If the plan is adopted by the members or stockholders
265 of the transferring financial institution, the president or vice
266 president and the cashier, manager, or corporate secretary of
267 such institution shall submit the adopted plan to the offi ce,
268 together with a certified copy of the resolution of the members
269 or stockholders approving it.
270 (b) Upon receipt of the certified copies and evidence that
271 the participating financial institutions have complied with all
272 applicable state and federal law and rules, the office shall
273 certify, in writing, to the participants that the plan has been
274 approved.
275 (c) Notwithstanding approval of the members or
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276 stockholders or certification by the office, the board of
277 directors of the transferring financial institution may abandon
278 such a transaction without further action or approval by the
279 members or stockholders, subject to the rights of third parties
280 under any contracts relating thereto.
281 (6)(5) FEDERALLY CHARTERED OR OUT-OF-STATE INSTITUTION AS
282 A PARTICIPANT.—If one of the participants in a transaction under
283 this section is a federally chartered financial institution or
284 an out-of-state financial institution, all participants must
285 also comply with requirements imposed by federal and other state
286 law for the acquisition, assumption, or sale and provide
287 evidence of such compliance to the office as a condition
288 precedent to the issuance of a certificate authorizing the
289 transaction; however, if the purchasing or assuming financial
290 institution is a federal or out-of-state state-chartered
291 financial institution and the transferring state financial
292 entity will be liquidated, approval of the office is not
293 required.
294 (7)(6) STOCK INSTITUTION ACQUIRING MUTUAL INSTITUTION.—A
295 mutual financial institution may not sell 50 percent or more all
296 or substantially all of its assets to a stock financial
297 institution until it has first converted into a capital stock
298 financial institution in accordance with s. 665.033(1) and (2).
299 For this purpose, references in s. 665.033(1) and (2) to
300 associations also refer to credit unions but, in the case of a
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301 credit union, the provision concerning proxy statements does not
302 apply.
303 Section 6. Paragraph (c) of subsection (3) of section
304 655.50, Florida Statutes, is amended to read:
305 655.50 Florida Control of Money Laundering and Terrorist
306 Financing in Financial Institutions Act.—
307 (3) As used in this section, the term:
308 (c) "Financial institution" has the same meaning as in s.
309 655.005(1)(i), excluding an international representative office,
310 an international administrative office, or a qualified limited
311 service affiliate means a financial institution, as defined in
312 31 U.S.C. s. 5312, as amended, including a credit card bank,
313 located in this state.
314 Section 7. Present subsections (2) through (8) of section
315 657.021, Florida Statutes, are redesignated as subsections (3)
316 through (9), respectively, and a new subsection (2) is added to
317 that section, to read:
318 657.021 Board of directors; executive committee
319 responsibilities; oaths; reports to the office.—
320 (2) Within the 30 days following the annual meeting or any
321 other meeting at which any director, officer, member of the
322 supervisory or audit committee, member of the credit committee,
323 or credit manager is elected or appointed, the credit union
324 shall submit to the office the names and residence addresses of
325 the elected or appointed person or persons on a form adopted by
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326 the commission and provided by the office.
327 Section 8. Subsection (6) of section 657.028, Florida
328 Statutes, is amended to read:
329 657.028 Activities of directors, officers, committee
330 members, employees, and agents.—
331 (6) Within 30 days after election or appointment, a record
332 of the names and addresses of the members of the board, members
333 of committees, all officers of the credit union, and the credit
334 manager shall be filed with the office on forms prescribed by
335 the commission.
336 Section 9. Present subsections (20) through (24) of
337 section 658.12, Florida Statutes, are redesignated as
338 subsections (21) through (25), respectively, and a new
339 subsection (20) is added to that section, to read:
340 658.12 Definitions.—Subject to other definitions contained
341 in the financial institutions codes and unless the context
342 otherwise requires:
343 (20) "Target market" means the group of clients or
344 potential clients from whom:
345 (a) A bank or proposed bank expects to draw deposits and
346 to whom the bank or proposed bank focuses or intends to focus
347 its marketing efforts; or
348 (b) A trust company, a trust department of a bank or
349 association, a proposed trust company, or a proposed trust
350 department of a bank or association expects to draw its
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351 fiduciary accounts and to whom the trust company, the trust
352 department of a bank or association, the proposed t rust company,
353 or the proposed trust department of a bank or association
354 focuses or intends to focus its marketing efforts.
355 Section 10. Paragraphs (b) and (c) of subsection (1) of
356 section 658.20, Florida Statutes, are amended to read:
357 658.20 Investigation by office.—
358 (1) Upon the filing of an application, the office shall
359 make an investigation of:
360 (b) The need for bank or trust facilities or additional
361 bank or trust facilities, as the case may be, in the primary
362 service area where the proposed bank or trust company is to be
363 located or the need for the target market that the bank or trust
364 company intends to engage with in business.
365 (c) The ability of the primary service area or target
366 market to support the proposed bank or trust company and all
367 other existing bank or trust facilities that serve the same
368 primary service area or target market in the primary service
369 area.
370 Section 11. Subsections (1) and (4) of section 658.21,
371 Florida Statutes, are amended to read:
372 658.21 Approval of application; findings required.—The
373 office shall approve the application if it finds that:
374 (1) Local and target market conditions indicate reasonable
375 promise of successful operation for the proposed state bank or
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376 trust company. In determining whether an applicant meets the
377 requirements of this subsection, the office shall consider all
378 materially relevant factors, including:
379 (a) The purpose, objectives, and business philosophy of
380 the proposed state bank or trust company.
381 (b) The projected financial performance of the proposed
382 bank or trust company.
383 (c) The feasibility of the proposed bank or trust company,
384 as stated in the business plan, particularly with respect to
385 asset and liability growth and management.
386 (4)(a) The proposed officers have sufficient financial
387 institution experience, ability, standing, and reputation and
388 the proposed directors have sufficient business experience,
389 ability, standing, and reputation to indicate reasonable promise
390 of successful operation, and none of the proposed officers or
391 directors has been convicted of, or pled guilty or nolo
392 contendere to, any violation of s. 655.50, relating to the
393 control of money laundering and terrorist financing; chapter
394 896, relating to offenses related to financial institutions; or
395 similar state or federal law.
396 (b) At least two of the proposed directors who are not
397 also proposed officers must have had at least 1 year of direct
398 experience as an executive officer, regulator, or director of a
399 financial institution within the 5 years before the date of the
400 application. However, if the applicant demonstrates that at
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401 least one of the proposed directors has very substantial
402 experience as an executive officer, director, or regulator of a
403 financial institution more than 5 years before the date of the
404 application, the office may modify the requirement and allow the
405 applicant to have only one director who has direct financial
406 institution experience within the last 5 years.
407 (c) The proposed president or chief executive officer must
408 have had at least 1 year of direct experience as an executive
409 officer, director, or regulator of a financial institution
410 within the last 5 years. The office may waive this requirement
411 after considering:
412 1. The adequacy of the overall experience and expertise of
413 the proposed president or chief executive officer;
414 2. The likelihood of successful operation of the proposed
415 state bank or trust company pursuant to subsection (1);
416 3. The adequacy of the proposed capitalization under
417 subsection (2);
418 4. The proposed capital structure under subsection (3) ;
419 5. The experience of the other proposed officers and
420 directors; and
421 6. Any other relevant data or information.
422 Section 12. Present subsections (2), (3), and (4) of
423 section 658.28, Florida Statutes, are redesignated as
424 subsections (3), (4), and (5), respectively, and a new
425 subsection (2) is added to that section, to read:
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426 658.28 Acquisition of control of a bank or trust company. —
427 (2) If a person or a group of persons, directly or
428 indirectly, acquires a controlling interest in a state bank or
429 state trust company, as contemplated by this section, through
430 probate or trust, the person or group of persons shall notify
431 the office within 90 days after acquiring such an interest. Such
432 an interest does not give rise to a presumption of control until
433 the person or group of persons votes the shares or the office
434 has issued a certificate of approval in response to an
435 application pursuant to subsection (1).
436 Section 13. Present paragraphs (a), (b), and (c) of
437 subsection (11) of section 658.2953, Florida Statutes, are
438 redesignated as paragraphs (b), (c), and (d), respectively, and
439 a new paragraph (a) is added to that subsection, to read:
440 658.2953 Interstate branching.—
441 (11) DE NOVO INTERSTATE BRANCHING BY STATE BANKS.—
442 (a) As used in this subsection, the term "de novo branch"
443 means a branch of a bank which is originally established by the
444 bank as a branch and does not become a branch of such bank as a
445 result of:
446 1. The bank's acquisition of another bank or of a branch
447 of another bank; or
448 2. The conversion, merger, or consolidation of any bank or
449 branch.
450 Section 14. Paragraph (d) of subsection (1) of section
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451 662.1225, Florida Statutes, is amended to read:
452 662.1225 Requirements for a family trust company, licensed
453 family trust company, or foreign licensed family trust company. —
454 (1) A family trust company or a licensed family trust
455 company shall maintain:
456 (d) A deposit account with:
457 1. A bank located in the United States and insured by the
458 Federal Deposit Insurance Corporation; or
459 2. A credit union located in the United States and insured
460 by the National Credit Union Administration with a state-
461 chartered or national financial institution that has a principal
462 or branch office in this state.
463 Section 15. Subsection (1) of section 662.128, Florida
464 Statutes, is amended to read:
465 662.128 Annual renewal.—
466 (1) Within 45 days after the end of each calendar year, A
467 family trust company, licensed family trust company, or foreign
468 licensed family trust company shall file an its annual renewal
469 application with the office on an annual basis no later than 45
470 days after the anniversary of the filing of either the initial
471 application or the prior year's renewal application .
472 Section 16. Subsection (1) of section 663.07, Florida
473 Statutes, is amended to read:
474 663.07 Asset maintenance or capital equivalency.—
475 (1) Each international bank agency and international
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476 branch shall:
477 (a) Maintain with one or more banks insured by the Federal
478 Deposit Insurance Corporation and located within the United
479 States in this state, in such amounts as the office specifies,
480 evidence of dollar deposits or investment securities of the type
481 that may be held by a state bank for its own account pursuant to
482 s. 658.67. The aggregate amount of dollar deposits and
483 investment securities for an international bank agency or
484 international branch shall, at a minimum, equal the greater of:
485 1. Four million dollars; or
486 2. Seven percent of the total liabilities of the
487 international bank agency or international branch excluding
488 accrued expenses and amounts due and other liabilities to
489 affiliated branches, offices, agencies, or entities; or
490 (b) Maintain other appropriate reserves, taking into
491 consideration the nature of the business being conducted by the
492 international bank agency or international branch.
493
494 The commission shall prescribe, by rule, the deposit,
495 safekeeping, pledge, withdrawal, recordkeeping, and other
496 arrangements for funds and securities maintained under this
497 subsection. The deposits and securities used to satisfy the
498 capital equivalency requirements of this subsection shall be
499 held, to the extent feasible, in one or more state or national
500 banks located in this state or in a federal reserve bank.
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501 Section 17. Present subsections (4), (5), and (6) of
502 section 663.532, Florida Statutes, are redesignated as
503 subsections (5), (6), and (7), respectively, a new subsection
504 (4) is added to that section, and paragraphs (i) and (j) of
505 subsection (1) of that section are amended, to read:
506 663.532 Qualification.—
507 (1) To qualify as a qualified limited service affiliate
508 under this part, a proposed qualified limited service affiliate
509 must file a written notice with the office, in the manner and on
510 a form prescribed by the commission. Such written notice must
511 include:
512 (i) A declaration under penalty of perjury signed by the
513 executive officer, manager, or managing member of the proposed
514 qualified limited service affiliate that, to the best of his or
515 her knowledge:
516 1. No employee, representative, or agent provides, or will
517 provide, banking services; promotes or sells, or will promote or
518 sell, investments; or accepts, or will accept, custody of
519 assets.
520 2. No employee, representative, or agent acts, or will
521 act, as a fiduciary in this state, which includes, but is not
522 limited to, accepting the fiduciary appointment, executing the
523 fiduciary documents that create the fiduciary relationship, or
524 making discretionary decisions regarding the investment or
525 distribution of fiduciary accounts.
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526 3. The jurisdiction of the international trust entity or
527 its offices, subsidiaries, or any affiliates that are directly
528 involved in or facilitate the financial services functions,
529 banking, or fiduciary activities of the international trust
530 entity is not listed on the Financial Action Task Force's list
531 of High-Risk Jurisdictions subject to a Call for Action or list
532 of Jurisdictions under Increased Monitoring Force Public
533 Statement or on its list of jurisdictions with deficiencies in
534 anti-money laundering or counterterrorism.
535 (j) For each international trust entity that the proposed
536 qualified limited service affiliate will provide services for in
537 this state, the following:
538 1. The name of the international trust entity;
539 2. A list of the current officers and directors of the
540 international trust entity;
541 3. Any country where the international trust entity is
542 organized or authorized to do business;
543 4. The name of the home-country regulator;
544 5. Proof that the international trust entity has been
545 authorized by charter, license, or similar authorization by its
546 home-country regulator to engage in trust business;
547 6. Proof that the international trust entity lawfully
548 exists and is in good standing under the laws of the
549 jurisdiction where it is chartered, licensed, or organized;
550 7. A statement that the international trust entity is not
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551 in bankruptcy, conservatorship, receivership, liquidation, or in
552 a similar status under the laws of any country;
553 8. Proof that the international trust entity is not
554 operating under the direct control of the government or the
555 regulatory or supervisory authority of the jurisdiction of its
556 incorporation, through government intervention or any other
557 extraordinary actions, and confirmation that it has not been in
558 such a status or under such control at any time within the prior
559 3 years;
560 9. Proof and confirmation that the proposed qualified
561 limited service affiliate is affiliated with the international
562 trust entities provided in the notice; and
563 10. Proof that the jurisdictions where the internationa l
564 trust entity or its offices, subsidiaries, or any affiliates
565 that are directly involved in or that facilitate the financial
566 services functions, banking, or fiduciary activities of the
567 international trust entity are not listed on the Financial
568 Action Task Force's list of High-Risk Jurisdictions subject to a
569 Call for Action or list of Jurisdictions under Increased
570 Monitoring Force Public Statement or on its list of
571 jurisdictions with deficiencies in anti-money laundering or
572 counterterrorism.
573
574 The proposed qualified limited service affiliate may provide
575 additional information in the form of exhibits when attempting
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576 to satisfy any of the qualification requirements. All
577 information that the proposed qualified limited service
578 affiliate desires to present to support the written notice must
579 be submitted with the notice.
580 (4) The qualified limited service affiliate shall suspend
581 the permissible activities provided in s. 663.531 relating to a
582 specific jurisdiction if the qualified limited service affiliate
583 becomes aware that the jurisdiction of an international trust
584 entity served by the qualified limited service affiliate is
585 included on the Financial Action Task Force's list of High -Risk
586 Jurisdictions subject to a Call for Action or list of
587 Jurisdictions under Increased Monitoring. Suspensions under this
588 subsection must remain in effect until the jurisdiction is
589 removed from the Financial Action Task Force's list of High Risk
590 Jurisdictions subject to a Call for Action or list of
591 Jurisdictions under Increased Monitoring.
592 Section 18. Paragraph (a) of subsection (5) of section
593 736.0802, Florida Statutes, is amended to read:
594 736.0802 Duty of loyalty.—
595 (5)(a) An investment by a trustee authorized by lawful
596 authority to engage in trust business, as defined in s. 658.12
597 s. 658.12(20), in investment instruments, as defined in s.
598 660.25(6), that are owned or controlled by the trustee or its
599 affiliate, or from which the trustee or its affiliate receives
600 compensation for providing services in a capacity other than as
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601 trustee, is not presumed to be affected by a conflict between
602 personal and fiduciary interests provided the investment
603 otherwise complies with chapters 518 and 660 and the trustee
604 complies with the requirements of this subsection.
605 Section 19. For the purpose of incorporating the amendment
606 made by this act to section 658.20, Florida Statutes, in a
607 references thereto, subsection (1) of section 658.165, Florida
608 Statutes, is reenacted to read:
609 658.165 Banker's banks; formation; applicability of
610 financial institutions codes; exceptions.—
611 (1) If authorized by the office, a corporation may be
612 formed under the laws of this state for the purpose of becoming
613 a banker's bank. An application for authority to organize a
614 banker's bank is subject to ss. 658.19, 658.20, and 658.21,
615 except that s. 658.20(1)(b) and (c) and the minimum stock
616 ownership requirements for the organizing directors provided in
617 s. 658.21(2) do not apply.
618 Section 20. This act shall take effect July 1, 2022.
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