(1) A custodian of gold coin or silver coin must meet all of the following requirements:(a) Be located in a manner that enables rapid response time by law enforcement.
(b) Meet security requirements in accordance with industry standards, including, but not limited to:1. Use of a high-security vault rated by a reputable private security testing company approved by the office;
2. Physical security and video surveillance 24 hours a day, 7 days a week;
3. Biometric or multifactor access controls;
4. Facility design that is disaster-resistant, including resistant to fire, flood, hurricanes, and earthquakes; and
5. Annual review of security procedures and, as necessary, updates of security procedures.
(c) Maintain accurate accounting records identifying all owners’ gold coin or silver coin and the custodian’s own gold coin or silver coin.
(d) Maintain records detailing the inventory system, including, but not limited to, serial number and bar number tracking and ledger accounts.
(e) Segregate asset classes that are not gold coin or silver coin.
(f) Store gold coin or silver coin on a fully allocated basis with an undivided interest for each owner. As used in this paragraph, the term:1. “Fully allocated” means that each owner has a direct and specific legal claim to the exact gold coin or silver coin, or portion thereof, equal to their deposit that is held by the custodian of gold coin or silver coin.
2. “Undivided interest” means all owners share the physical gold coin or silver coin collectively, with each owner entitled to a proportional share of the total holdings equal to their ownership, even though the gold coin or silver coin may be stored as a larger unit.
(g) Comply with chain of custody requirements, as prescribed by commission rule.
(h) Have its custodial holdings examined or audited at least annually by an independent certified public accountant or other auditor acceptable to the office. The auditor must verify that the custodian’s custodial assets are sufficient to cover all owner holdings and are held as represented. The results of such audit or examination must be reported to the office.
(i) Maintain insurance covering 100 percent of the full replacement value of the stored gold coin or silver coin under an all-risk insurance policy for loss, theft, damage, and employee dishonesty by an authorized insurer or eligible surplus lines insurer.
(j) Maintain secure technology, including all of the following cybersecurity measures:1. Secure online portal for account access.
2. Data encrypted in transit and at rest.
3. Two-factor authentication for login.
4. Annual cybersecurity audits and vulnerability assessments.
(k) Maintain custody within this state of the exact quantity and type of gold coin or silver coin as that entrusted by each owner.
(l) Refrain from selling, lending, pledging, rehypothecating, or encumbering any owner’s gold coin or silver coin except to the extent directed by the owner for a transfer or transaction.
(m) Comply with anti-money laundering regulations pursuant to this chapter, and any applicable state or federal regulations.
(n) Comply with all other applicable state and federal laws and regulations.
(2) For a custodian that has a direct contractual relationship with an owner of the gold coin or silver coin, in addition to the requirements provided in subsection (1), such custodian must also comply with all of the following requirements:(a) Furnish to each owner, at the inception of the relationship for providing products or services relating to gold coin or silver coin and on at least an annual basis, a clear, written disclosure of the terms and conditions of the custodial arrangement and the associated risks of such arrangement as prescribed by commission rule. Such disclosure must include that the gold coin or silver coin is not insured by the Federal Deposit Insurance Corporation, National Credit Union Association, or Securities Investor Protection Corporation but is privately insured covering 100 percent of the full replacement value of the gold coin or silver coin as provided in paragraph (1)(i), and that the owner’s gold coin or silver coin is held by a licensed custodian under Florida law.
(b) Provide quarterly account statements to an owner which itemize the gold coin or silver coin in custody for such owner, and promptly deliver an updated statement upon the owner’s request.
(c) Return the owner’s gold coin or silver coin to the owner upon the owner’s request, which return must meet all of the following requirements, as applicable:1. The custodian must deliver possession of the physical gold coin or silver coin no later than 10 business days after the date of the owner’s request;
2. The owner may direct and the custodian must return physical gold coin or silver coin at the minimum weight of at least 1 gram; the custodian may also return some or all of the owner’s gold coin and silver coin at higher weights;
3. Any holdings of gold coin or silver coin less than 1 whole gram may be converted, at the discretion of the custodian, to United States currency at the market rate at the time the request is received by such custodian;
4. The owner may direct that any or all of his or her holdings of gold coin or silver coin be converted to United States currency and be delivered to the owner within 5 business days after a request; and
5. The owner and the custodian may agree on any other terms of delivery provided such terms meet the minimum requirements provided in this paragraph.
(d) Within 10 business days after a request, make available to an owner a copy of any audit report required pursuant to paragraph (1)(h) which has been completed within the most recent 2-calendar-year period.
(e) Not disclose information relating to an account holder, including, but not limited to, the account holder’s identity, account balances, account transactions, or other related data, except under any of the following circumstances:1. The disclosure is made with the express written consent of the account holder.
2. The disclosure is made pursuant to a court order or a subpoena issued by a court of competent jurisdiction in a civil or criminal proceeding.
3. The disclosure is otherwise authorized or required by state or federal law.
Any information obtained in violation of this paragraph is inadmissible in any proceeding if a timely objection is made. A subcontractor or agent of a custodian of gold coin or silver coin may not disclose any information relating to an account holder, including, but not limited to, the account holder’s identity, account balances, account transactions, or other related data, except under the circumstances described in subparagraph 1., subparagraph 2., or subparagraph 3.
