Florida Senate - 2017                                    SB 1078
       By Senator Garcia
       36-00617-17                                           20171078__
    1                        A bill to be entitled                      
    2         An act relating to international financial
    3         institutions; amending s. 655.005, F.S.; revising a
    4         definition; amending s. 655.059, F.S.; revising
    5         requirements for confidential books and records of
    6         financial institutions that must be made available for
    7         inspection and examination; revising examination
    8         requirements; revising a definition; providing
    9         applicability; amending s. 663.01, F.S.; revising a
   10         definition to conform to changes made by the act;
   11         providing a directive to the Division of Law Revision
   12         and Information; creating s. 663.530, F.S.; providing
   13         definitions; creating s. 663.531, F.S.; authorizing a
   14         limited service affiliate to engage in specified
   15         activities; prohibiting a limited service affiliate
   16         from engaging in specified activities; providing the
   17         Office of Financial Regulation with certain powers;
   18         providing applicability; creating s. 663.532, F.S.;
   19         providing limited service affiliate registration
   20         requirements; creating s. 663.533, F.S.; providing
   21         applicability of the financial institutions codes;
   22         creating s. 663.534, F.S.; providing registrant
   23         reporting requirements; creating s. 663.535, F.S.;
   24         providing limited service affiliate notice
   25         requirements; creating s. 663.536, F.S.; providing
   26         registrant recordkeeping requirements; creating s.
   27         663.537, F.S.; authorizing the office to conduct an
   28         examination or investigation of a limited service
   29         affiliate; providing powers of the office; providing
   30         fee requirements; creating s. 663.538, F.S.; providing
   31         for the suspension, revocation, or voluntary surrender
   32         of registration; creating s. 663.539, F.S.; providing
   33         registration renewal requirements; creating s.
   34         663.540, F.S.; providing that an international trust
   35         entity’s limited service affiliate is not required, in
   36         response to a subpoena, to produce certain books or
   37         records under specified circumstances; providing an
   38         effective date.
   40  Be It Enacted by the Legislature of the State of Florida:
   42         Section 1. Paragraph (i) of subsection (1) of section
   43  655.005, Florida Statutes, is amended to read:
   44         655.005 Definitions.—
   45         (1) As used in the financial institutions codes, unless the
   46  context otherwise requires, the term:
   47         (i) “Financial institution” means a state or federal
   48  savings or thrift association, bank, savings bank, trust
   49  company, international bank agency, international banking
   50  corporation, international branch, international representative
   51  office, international administrative office, international trust
   52  entity, international trust company representative office,
   53  limited service affiliate, credit union, or an agreement
   54  corporation operating pursuant to s. 25 of the Federal Reserve
   55  Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized
   56  pursuant to s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss.
   57  611 et seq.
   58         Section 2. Paragraph (d) of subsection (1) and paragraph
   59  (b) of subsection (2) of section 655.059, Florida Statutes, are
   60  amended to read:
   61         655.059 Access to books and records; confidentiality;
   62  penalty for disclosure.—
   63         (1) The books and records of a financial institution are
   64  confidential and shall be made available for inspection and
   65  examination only:
   66         (d) With respect to an international banking corporation or
   67  international trust entity, to the home-country supervisor of
   68  the international banking corporation or international trust
   69  entity, provided:
   70         1. The home-country supervisor provides advance notice to
   71  the office that the home-country supervisor intends to examine
   72  the Florida office of the international banking corporation or
   73  international trust entity. The examination may be conducted
   74  onsite or offsite and may include ongoing reporting by the
   75  principal Florida office of the international banking
   76  corporation or international trust entity to the home-country
   77  supervisor.
   78         2. The home-country supervisor confirms to the office that
   79  the purpose of the examination is to ensure the safety and
   80  soundness of the international banking corporation or
   81  international trust entity.
   82         3. The books and records pertaining to customer deposit,
   83  investment, and custodial, and trust accounts are not disclosed
   84  to the home-country supervisor.
   85         4. At any time during the conduct of the examination, the
   86  office reserves the right to have an examiner present, or to
   87  participate jointly in the examination, or receive copies of all
   88  of the books and records provided to the home-country
   89  supervisor.
   91  For purposes of this paragraph, “home-country supervisor” means
   92  the governmental entity in the international banking
   93  corporation’s or international trust entity’s home country with
   94  responsibility for the supervision and regulation of the safety
   95  and soundness of the international banking corporation or
   96  international trust entity;
   97         (2)
   98         (b) The books and records pertaining to the deposit
   99  accounts and loans of depositors, borrowers, members, trust
  100  customers including trust beneficiaries, and stockholders of any
  101  financial institution shall be kept confidential by the
  102  financial institution and its directors, officers, and employees
  103  and shall not be released except upon express authorization of
  104  the account holder or customer as to her or his own accounts,
  105  loans, trust, or voting rights. However, information relating to
  106  any loan made by a financial institution may be released without
  107  the borrower’s authorization in a manner prescribed by the board
  108  of directors for the purpose of meeting the needs of commerce
  109  and for fair and accurate credit information. Information may
  110  also be released, without the authorization of a member or
  111  depositor but in a manner prescribed by the board of directors,
  112  to verify or corroborate the existence or amount of a customer’s
  113  or member’s account when such information is reasonably provided
  114  to meet the needs of commerce and to ensure accurate credit
  115  information. In addition, a financial institution, affiliate,
  116  and its subsidiaries, and any holding company of the financial
  117  institution or subsidiary of such holding company, may furnish
  118  to one another information relating to their customers or
  119  members, subject to the requirement that each corporation
  120  receiving information that is confidential maintain the
  121  confidentiality of such information and not provide or disclose
  122  such information to any unaffiliated person or entity.
  123  Notwithstanding this paragraph, nothing in this subsection shall
  124  prohibit:
  125         1. A financial institution from disclosing financial
  126  information as referenced in this subsection as permitted by
  127  Pub. L. No. 106-102(1999), as set forth in 15 U.S.C.A. s. 6802,
  128  as amended.
  129         2.The principal Florida office of the international
  130  banking corporation or international trust entity from
  131  disclosing the books and records as referenced in this
  132  subsection with the home-country supervisor in accordance with
  133  subsection (1).
  134         Section 3. Subsection (6) of section 663.01, Florida
  135  Statutes, is amended to read:
  136         663.01 Definitions.—As used in this part, the term:
  137         (6) “International banking corporation” means a banking
  138  corporation organized and licensed under the laws of a foreign
  139  country. The term “international banking corporation” includes,
  140  without limitation, a foreign commercial bank, foreign merchant
  141  bank, or other foreign institution that engages in banking
  142  activities usual in connection with the business of banking in
  143  the country where such foreign institution is organized or
  144  operating, including a corporation: the sole shareholders of
  145  which are one or more international banking corporations or
  146  holding companies which own or control one or more international
  147  banking corporations which are authorized to carry on a banking
  148  business, or a central bank or government agency of a foreign
  149  country and any affiliate or division thereof; which has the
  150  power to receive deposits from the general public in the country
  151  where it is chartered and organized; and which is under the
  152  supervision of the central bank or other bank regulatory
  153  authority of such country. The term also includes foreign trust
  154  companies, or any similar business entities, including, but not
  155  limited to, foreign banks with fiduciary powers, that conduct
  156  trust business as defined in the financial institutions codes.
  157         Section 4. The Division of Law Revision and Information is
  158  directed to create part III of chapter 663, Florida Statutes,
  159  consisting of ss. 663.530-663.540, Florida Statutes, to be
  160  entitled “Limited Service Affiliates of International Trust
  161  Entities.”
  162         Section 5. Section 663.530, Florida Statutes, is created to
  163  read:
  164         663.530Definitions.—
  165         (1)As used in this part:
  166         (a)“Foreign country” means a country other than the United
  167  States and includes any colony, dependency, or possession of
  168  such country, notwithstanding any definitions in chapter 658,
  169  and any territory of the United States, including Guam, American
  170  Samoa, the Virgin Islands, and the Commonwealth of Puerto Rico.
  171         (b)“Home country regulator” means the supervisory
  172  authority or its equivalent, or other similarly sanctioned body,
  173  organization, governmental entity, or recognized authority that
  174  has similar responsibilities in a foreign country in which and
  175  by whom an international trust entity is licensed, chartered, or
  176  has similar authorization to organize and operate.
  177         (c)“International trust entity” means an international
  178  trust company or any international business, international
  179  business organization, or an affiliated or subsidiary entity
  180  that is licensed, chartered, or similarly permitted to conduct
  181  trust business in a foreign country or countries under the laws
  182  of which it is organized and supervised.
  183         (d)“Limited service affiliate” means a marketing and
  184  liaison office that engages in the permissible activities in s.
  185  663.531 for the benefit of an international trust entity.
  186         (e)“Nonresident” has the same meaning as provided in s.
  187  663.01(11).
  188         (f)“Professional” means an accountant, attorney, or other
  189  financial services and wealth planning professional who is
  190  licensed by a governing body or affiliated with a licensed,
  191  chartered, or similarly authorized entity.
  192         (g)“Registrant” means a person or entity registered to
  193  perform the activities in s. 663.531 related to, or for the
  194  benefit of, an affiliated international trust entity.
  195         (2)The definitions provided in s. 655.005 shall apply to
  196  this part, except a definition in conflict with or superseded or
  197  modified by the provisions of this section.
  198         Section 6. Section 663.531, Florida Statutes, is created to
  199  read:
  200         663.531Permissible activities.—
  201         (1)A limited service affiliate may engage in any of the
  202  following activities:
  203         (a)Marketing and liaison services related to, or for the
  204  benefit of, an affiliated international trust entity if such
  205  services are directed exclusively at professionals and current
  206  or prospective nonresident clients of an affiliated
  207  international trust entity.
  208         (b)Advertising and marketing at trade, industry, or
  209  professional events.
  210         (c)Transmitting documents between an international trust
  211  entity and its current or prospective clients or a designee of
  212  such clients.
  213         (d)Transmitting information relating to the trust or trust
  214  holdings of current clients between current clients, or their
  215  designees, and the international trust entity.
  216         (2)A limited service affiliate may not engage in any of
  217  the following activities:
  218         (a)Advertising and marketing services related to, or for
  219  the benefit of, the international trust entity if such services
  220  are directed at the general public.
  221         (b)Acting as a fiduciary, including, but not limited to,
  222  accepting a fiduciary appointment, executing a fiduciary
  223  document that creates a fiduciary relationship, or making
  224  discretionary decisions regarding the investment or distribution
  225  of fiduciary accounts.
  226         (c)Accepting custody of any trust property or any other
  227  good, asset, or thing of value on behalf of an affiliated
  228  international trust entity, its subsidiaries or affiliates, or
  229  subsidiaries and affiliates of the international trust company
  230  representative office.
  231         (d)Soliciting business within the state from the general
  232  public related to, or for the benefit of, an affiliated
  233  international trust entity.
  234         (e)Adding a financial institution-affiliated party to the
  235  limited service affiliate without prior written notification to
  236  the office.
  237         (f)Providing services for an international trust entity
  238  without complying with the requirements of s. 663.532.
  239         (g)Conducting banking or trust business.
  240         (3)The provisions of subsection (2) do not prevent the use
  241  of the Internet, provided that the posted information or
  242  communication:
  243         (a)Includes the statement: “Fiduciary services described
  244  herein are not offered to the general public in the State of
  245  Florida. Such services are marketed by (insert name of limited
  246  service affiliate) exclusively to professionals and current or
  247  prospective non-U.S. resident clients of its affiliated
  248  international trust entities.”
  249         (b)Includes the notice required in s. 663.535.
  250         (4)The office, in addition to any other power conferred
  251  upon it to enforce and administer this chapter and the financial
  252  institutions codes, may impose any remedy or penalty pursuant to
  253  s. 655.033, relating to cease and desist orders; s. 655.034,
  254  relating to injunctions; s. 655.037, relating to removal by the
  255  office of an officer, director, committee member, employee, or
  256  other person; or s. 655.041, relating to administrative fines
  257  and enforcement, for a violation of subsection (2).
  258         (5)This section does not subject a limited service
  259  affiliate to the financial institutions code with respect to
  260  business activities that do not otherwise require a license or
  261  registration under general law.
  262         Section 7. Section 663.532, Florida Statutes, is created to
  263  read:
  264         663.532Registration.—
  265         (1)To register as a limited service affiliate, a proposed
  266  registrant must file a written notice with the office, in the
  267  manner and on a form prescribed by the commission, with a
  268  nonrefundable registration fee of $2,500. Such notice must
  269  include:
  270         (a)The name under which the proposed registrant will
  271  conduct business in this state.
  272         (b)A copy of the articles of incorporation, articles of
  273  organization, or the equivalent, of the proposed registrant.
  274         (c)The physical address at which the proposed registrant
  275  will conduct business.
  276         (d)The mailing address of the proposed registrant.
  277         (e)The name and biographical information of the executive
  278  officer or managing member of the proposed registrant, submitted
  279  on a separate form prescribed by the commission.
  280         (f)The number of officers and employees of the proposed
  281  registrant’s business.
  282         (g)A detailed list and description of the activities the
  283  proposed registrant will conduct that must include:
  284         1.The services and activities of the proposed registrant.
  285         2.An explanation of how the services and activities of the
  286  proposed registrant serve the business purpose of each
  287  international trust entity.
  288         3.An explanation of how the services and activities of the
  289  proposed registrant are distinguishable from those of the
  290  permissible activities of an international trust company
  291  representative office.
  292         (h)Disclosure of any instance in which a director,
  293  executive officer, principal shareholder, manager, or the
  294  equivalent has ever been arrested for, charged with, convicted
  295  of, or plead guilty or nolo contendere to, regardless of
  296  adjudication, any offense that is punishable by imprisonment for
  297  a term exceeding 1 year, or to any offense that involves money
  298  laundering, currency transaction reporting, tax evasion,
  299  facilitating or furthering terrorism, fraud, theft, larceny,
  300  embezzlement, fraudulent conversion, misappropriation of
  301  property, dishonesty, breach of trust, breach of fiduciary duty,
  302  moral turpitude, or that is otherwise related to the operation
  303  of a financial institution, within the prior 10 years.
  304         (i)A declaration under penalty of perjury, signed by the
  305  executive officer or managing member of the proposed registrant,
  306  that, to the best of his or her knowledge:
  307         1.No financial institution-affiliated party of the
  308  proposed registrant or of any affiliated international trust
  309  entity:
  310         a.Has been fined or sanctioned as a result of any
  311  complaint to the office or any other state or federal regulatory
  312  agency.
  313         b.Has been convicted of a felony or ordered to pay a fine
  314  or penalty in any proceeding initiated by any federal, state,
  315  foreign, or local law enforcement agency or international agency
  316  within the prior 10 years.
  317         c.Provides or will provide services for any international
  318  trust entity that is in bankruptcy, conservatorship,
  319  receivership, liquidation, or in a similar status under the laws
  320  of any country.
  321         d.Provides or will provide banking services or promote or
  322  sell investments or accept custody of assets.
  323         e.Acts or will act as a fiduciary in this state,
  324  including, but not limited to, accepting the fiduciary
  325  appointment, executing the fiduciary documents that create the
  326  fiduciary relationship, or making discretionary decisions
  327  regarding the investment or distribution of fiduciary accounts.
  328         2.The jurisdiction of the international trust entity or
  329  its offices, subsidiaries, or any affiliates that are directly
  330  involved in, or facilitate the financial services functions,
  331  banking, or fiduciary activities of, the international trust
  332  entity, is not listed on the Financial Action Task Force Public
  333  Statement or on its list of jurisdictions with deficiencies in
  334  anti-money laundering or counterterrorism.
  335         (j)For each international trust entity that the proposed
  336  registrant will provide services for in this state:
  337         1.The name of the international trust entity.
  338         2.The names of the current officers and directors of the
  339  international trust entity.
  340         3.Any country in which the international trust entity is
  341  organized or authorized to do business and the name of the home
  342  country regulator.
  343         4.Proof that the international trust entity has been
  344  authorized by charter, license, or similar authorization by its
  345  home country regulator to engage in trust business.
  346         5.Proof that the international trust entity lawfully
  347  exists and is in good standing under the laws of the
  348  jurisdiction where it is chartered, licensed, or organized.
  349         6.A statement that the international trust entity is not
  350  in bankruptcy, conservatorship, receivership, liquidation, or in
  351  a similar status under the laws of any country.
  352         7.Proof that the international trust entity is not
  353  operating under the direct control of government, regulatory, or
  354  supervisory authority of the jurisdiction of its incorporation,
  355  through government intervention or any other extraordinary
  356  actions, and confirmation that it has not been in such a status
  357  or under such control at any time within the prior 3 years.
  358         8.Proof that the proposed registrant is affiliated with
  359  the international trust entities provided in the notice.
  360         9.Proof that the jurisdictions where the international
  361  trust entity or its offices, subsidiaries, or any affiliates
  362  that are directly involved in or facilitate the financial
  363  services functions, banking, or fiduciary activities of the
  364  international trust entity are not listed on the Financial
  365  Action Task Force Public Statement or on its list of
  366  jurisdictions with deficiencies in anti-money laundering or
  367  counterterrorism.
  368         (k)A declaration under penalty of perjury signed by an
  369  executive officer or managing member of each affiliated
  370  international trust entity declaring that the information
  371  provided to the office is true and correct to the best of his or
  372  her knowledge.
  374  The proposed registrant may provide additional information in
  375  the form of exhibits when attempting to satisfy any of the
  376  registration requirements. All information the proposed
  377  registrant desires to present to support the written notice
  378  shall be submitted with the notice.
  379         (2)The office may request additional information as the
  380  office reasonably requires. A request for additional information
  381  must be made by the office within 30 days after initial receipt
  382  of the proposed registrant’s written notice and the full amount
  383  of the prescribed fee. Additional information shall be submitted
  384  by the proposed registrant within 60 days after a request has
  385  been made by the office. Failure to respond to such request
  386  within 60 days after the date of the request is a ground for
  387  denial of the registration. No notice shall be deemed complete
  388  until all requested information has been submitted to the
  389  office. Upon deeming the notice complete, the office has 120
  390  days to register the limited service affiliate or issue a
  391  denial. Any order denying a registration must contain notice of
  392  opportunity for a hearing pursuant to ss. 120.569 and 120.57.
  393         (3)A registration under this part shall be suspended by
  394  the office if the limited service affiliate made a material
  395  false statement in the written notice. The suspension shall
  396  remain in effect until a final order is entered by the office.
  397  For the purposes of s. 120.60(6), a material false statement
  398  made in the limited service affiliate’s written notice
  399  constitutes an immediate and serious danger to the public
  400  health, safety, and welfare. If a limited service affiliate made
  401  a material false statement in the written notice, the office
  402  shall enter a final order revoking the registration and may
  403  issue a fine as prescribed by s. 655.041 or issue an order of
  404  suspension, removal, or prohibition under s. 655.037 to a
  405  financial institution-affiliated party of the limited service
  406  affiliate.
  407         (4)Any instance wherein a director, executive officer,
  408  principal shareholder, manager, or the equivalent has ever been
  409  arrested for, charged with, convicted of, or plead guilty or
  410  nolo contendere to, regardless of adjudication, any offense that
  411  involves money laundering, currency transaction reporting, tax
  412  evasion, facilitating or furthering terrorism, fraud, theft,
  413  larceny, embezzlement, fraudulent conversion, misappropriation
  414  of property, dishonesty, breach of trust, breach of fiduciary
  415  duty, moral turpitude, or that is otherwise related to the
  416  operation of a financial institution, is a ground for denial of
  417  the registration.
  418         (5)A registration is not transferable or assignable.
  419         (6)Fees collected under this section must be submitted in
  420  the manner prescribed by the commission and must be deposited
  421  into the Financial Institutions’ Regulatory Trust Fund pursuant
  422  to s. 655.049 for the purpose of administering this part.
  423         (7)Any person or entity in operation as of January 1,
  424  2018, that is a limited service affiliate must, on or before
  425  March 31, 2018, apply for registration as a limited service
  426  affiliate or cease doing business in this state.
  427         (8)On or before March 31, 2018, any person or entity that
  428  is a limited service affiliate and previously qualified under
  429  the moratorium in s. 663.041 must register under this part or
  430  cease doing business in this state. Any person or entity that is
  431  a limited service affiliate and previously qualified under the
  432  moratorium in s. 663.041 may remain open and in operation until
  433  March 31, 2018, without registering under this part but must
  434  refrain from engaging in new lines of business in this state
  435  until the disposition of registration under this section.
  436         Section 8. Section 663.533, Florida Statutes, is created to
  437  read:
  438         663.533Applicability of the financial institutions codes.
  439  Except as otherwise provided, the following provisions of the
  440  financial institutions codes are applicable to a limited service
  441  affiliate:
  442         (1)Section 655.012, relating to general supervisory powers
  443  of the office.
  444         (2)Section 655.031, relating to administrative enforcement
  445  guidelines.
  446         (3)Section 655.032, relating to investigations.
  447         (4)Section 655.0321, relating to hearings and proceedings.
  448         (5)Section 655.033, relating to cease and desist orders.
  449         (6)Section 655.034, relating to injunctions.
  450         (7)Section 655.037, relating to removal of a financial
  451  institution-affiliated party by the office.
  452         (8)Section 655.041, relating to administrative fines.
  453         (9)Section 655.057, relating to public records.
  454         (10)Section 655.059, relating to access to books and
  455  records.
  456         (11)Section 655.0591, relating to trade secret documents.
  457         (12)Section 655.91, relating to records of institutions
  458  and copies thereof and retention and destruction.
  459         (a)With respect to a limited service affiliate registered
  460  under this part, s. 655.91 requires only the retention of:
  461         1.Correct and complete books and records of account of
  462  financial transactions by such limited service affiliate. All
  463  policies and procedures relating specifically to the financial
  464  transactions of such limited service affiliate, as well as any
  465  existing general ledger or subsidiary accounts, must be
  466  maintained in English. Any policies and procedures of the
  467  limited service affiliate which are not specific to the
  468  operations of such office may be maintained in a language other
  469  than English.
  470         2.Current copies of the articles of incorporation or
  471  organization and bylaws of the limited service affiliate, and
  472  minutes of the proceedings of its directors, officers, or
  473  committees relative to the business of the limited service
  474  affiliate. Such records may be maintained in a language other
  475  than English, and shall be kept pursuant to s. 655.91 and made
  476  available to the office, upon request, at any time during
  477  regular business hours of the limited service affiliate.
  478         3.Information required to be provided to the office or
  479  retained under ss. 663.531, 663.532, 663.534, 663.535, 663.536,
  480  663.538, and 663.539, including any source documents used to
  481  prepare any application or report required under this part.
  482         4.Copies of agreements with third parties.
  483         5.Marketing or advertising materials used by the limited
  484  service affiliate.
  485         6.Policies and procedures adopted or followed by the
  486  limited service affiliate regarding compliance with this part.
  487         (b)Limited service affiliates are not required to preserve
  488  or retain any of their records or copies thereof for a period
  489  longer than is expressly required by an applicable statute or
  490  rule or regulation of this state or the United States which
  491  identifies, either specifically or by type or category, the
  492  relevant records or copies thereof. If there is no such statute,
  493  rule, or regulation that specifies a retention period applicable
  494  to the records or copies thereof, limited service affiliates
  495  shall adopt their own records retention policies, provided that
  496  the records required under paragraph (a) must be retained for at
  497  least 18 months. A limited service affiliate may destroy any of
  498  its records or copies thereof after the expiration of the
  499  retention period determined as provided in this paragraph.
  500         (c)The office may require, at any time, that any document
  501  not written in English that the office deems necessary for the
  502  purposes of its regulatory and supervisory functions be
  503  translated into English at the expense of the limited service
  504  affiliate.
  505         (d)If the law of the home country jurisdiction of an
  506  international trust entity affiliated with the limited service
  507  affiliate prohibits disclosure of information that is in the
  508  possession of the limited service affiliate, the limited service
  509  affiliate must inform the office, specifically identifying the
  510  applicable provisions of law of the home country jurisdiction
  511  that prohibit such disclosure. In such case, the office may
  512  examine only the nonconfidential portions of a record unless it
  513  has obtained consent from the home country regulator or a final
  514  nonappealable order of a court of competent jurisdiction
  515  requiring the disclosure of such information.
  516         (e)Any record required to be maintained may be maintained
  517  in any format determined by the limited service affiliate,
  518  including electronic formats.
  519         (13)Section 655.968, relating to financial institutions
  520  and transactions relating to Iran or terrorism.
  522  This section does not prohibit the office from investigating or
  523  examining an entity to ensure that it is not in violation of
  524  this chapter or provisions of the financial institutions codes
  525  made applicable hereby.
  526         Section 9. Section 663.534, Florida Statutes, is created to
  527  read:
  528         663.534Events that require notice be provided to the
  529  office.—A registrant must report to the office within 15 days
  530  after the registrant’s knowledge of any change to the
  531  information previously relied upon by the office for
  532  registration or renewal of a registration under this part.
  533         Section 10. Section 663.535, Florida Statutes, is created
  534  to read:
  535         663.535Notice to customers.—All marketing documents and
  536  advertisements and any display at the location of the limited
  537  service affiliate or at any trade or marketing event must
  538  contain the following statement in a contrasting color in at
  539  least 10-point font: “The Florida Office of Financial Regulation
  540  DOES NOT provide safety and soundness oversight of this company
  541  or provide any opinion as to any affiliated companies or
  542  products, or the oversight of its affiliated international trust
  543  entities or the jurisdictions in which they operate. This
  544  company may not act as a fiduciary and may not accept the
  545  fiduciary appointment, execute fiduciary documents, take
  546  possession of any assets, create the fiduciary relationship,
  547  make discretionary decisions regarding the investment or
  548  distribution of fiduciary accounts, provide banking services, or
  549  promote or sell investments.”
  550         Section 11. Section 663.536, Florida Statutes, is created
  551  to read:
  552         663.536Recordkeeping requirements for trade, industry, or
  553  professional events.—Any registrant under this part which
  554  participates in a trade, industry, or professional event under
  555  s. 663.531 must maintain a record of its participation in the
  556  event. The record must be maintained for at least 2 years after
  557  the event and must contain the following information:
  558         (1)The date, time, and location of the event.
  559         (2)The list of participants in the event, including other
  560  vendors, presenters, attendees, and targeted attendees, to the
  561  extent known or available.
  562         (3)The nature and purpose of the event.
  563         (4)The registrant’s purpose for participating in the
  564  event.
  565         (5)Samples of materials or, if samples are unavailable,
  566  descriptions of materials provided by the registrant to
  567  attendees and other participants at the event.
  568         Section 12. Section 663.537, Florida Statutes, is created
  569  to read:
  570         663.537Examinations and investigations of a limited
  571  service affiliate.—
  572         (1)The office may conduct an examination or investigation
  573  of a limited service affiliate at any time it deems necessary to
  574  determine whether the limited service affiliate or financial
  575  institution-affiliated party thereof is in violation of any
  576  provision of this chapter, any applicable provision of the
  577  financial institutions codes, or any rule adopted by the
  578  commission pursuant to this chapter or the codes. The office
  579  shall conduct an examination of each limited service affiliate
  580  within the first 18 months after the initial registration to
  581  assess compliance with this part and the financial institutions
  582  codes applicable to this part. The office may conduct an
  583  examination of any person or entity who submits a notice for
  584  registration, to confirm information provided in the
  585  registration filing and to confirm the activities of the person
  586  or entity registering, before or after registration.
  587         (2)For each examination of a limited service affiliate
  588  authorized under this part, the limited service affiliate shall
  589  pay a fee for the costs of the examination. As used in this
  590  section, the term “costs” means the salary and travel expenses
  591  of field staff which are directly attributable to the
  592  examination of the registrant and the travel expenses of any
  593  supervisory and support staff required as a result of
  594  examination findings. The costs of examination shall be
  595  determined as follows:
  596         (a)The office shall charge each limited service affiliate
  597  in this state an examination fee equal to the actual cost of
  598  each examiner’s participation during each examination of such
  599  limited service affiliate. The examination fee shall equal the
  600  actual cost of the examination, but in no event shall such fees,
  601  including travel expenses and other incidental expenses, be less
  602  than $200 per day for each examiner participating in the
  603  examination;
  604         (b)For purposes of this section, “actual cost” means the
  605  direct salary not including employee benefits, travel expenses,
  606  and other incidental expenses required as a result of the
  607  examination staff’s onsite and offsite examination of the
  608  limited service affiliate. The term includes the travel expenses
  609  of any supervisory staff required as a result of examination
  610  findings.
  611         (3)All examination fee payments must be received within 30
  612  days after receipt of an invoice from the office and submitted
  613  in a manner prescribed by the commission. The office may levy a
  614  late fee of up to $100 per day for each day that a payment is
  615  overdue unless the fee is waived by the office for good cause.
  616  However, if the office determines that the late payment of costs
  617  is intentional, the office may levy an administrative fine of up
  618  to $1,000 per day for each day the payment is overdue.
  619         (4)All fees collected under this section must be submitted
  620  in the manner prescribed by the commission and deposited into
  621  the Financial Institutions’ Regulatory Trust Fund pursuant to s.
  622  655.049 for the purpose of administering this part.
  623         Section 13. Section 663.538, Florida Statutes, is created
  624  to read:
  625         663.538Suspension, revocation, or voluntary surrender of
  626  registration.—
  627         (1)A registrant that proposes to terminate operations in
  628  this state must surrender its registration to the office and
  629  comply with the procedures required by the commission.
  630         (2)A registrant that fails to renew their registration is
  631  subject to a fine and penalty. A registrant shall have 30 days
  632  after the expiration of its registration to renew the
  633  registration or must surrender the registration in accordance
  634  with procedures as the commission prescribes by rule.
  635         (3)The registration of a limited service affiliate in this
  636  state may be suspended or revoked by the office, with or without
  637  examination, upon the office’s determination that the registrant
  638  does not meet all requirements for registration or renewal.
  639         (4)If a registration is surrendered by the registrant or
  640  is suspended or revoked by the office, all rights and privileges
  641  afforded by this part to the limited service affiliate shall
  642  cease.
  643         (5)If a registrant voluntarily surrenders a registration,
  644  the registrant must provide the office with a written notice of
  645  its intention to surrender its registration and terminate
  646  operations at least 60 days before the proposed date of
  647  termination. The notice must include the proposed date of
  648  termination and the name of the officer in charge of the
  649  termination procedures.
  650         (6)The office may conduct an examination of the books and
  651  records of a limited service affiliate at any time after receipt
  652  of the notice of surrender of registration to confirm the
  653  winding down of operations.
  654         (7)Operations of a registrant are terminated 60 days after
  655  the date of the filing of the notice of voluntary surrender, or
  656  upon the date provided in the notice of voluntary surrender,
  657  unless the office provides written notice specifying the grounds
  658  for denial of such proposed termination. The office may not deny
  659  a request to terminate a registration unless it learns of the
  660  existence of an outstanding claim or claims against the
  661  registrant, that the requirements to terminate operations have
  662  not been satisfied, or that there would be an immediate and
  663  serious danger to the public health, safety, and welfare if the
  664  termination were to occur.
  665         Section 14. Section 663.539, Florida Statutes, is created
  666  to read:
  667         663.539Biennial registration renewal.—A registration must
  668  be renewed every 2 years. Registration must be renewed by
  669  furnishing information required by the commission with payment
  670  of a $500 nonrefundable renewal fee. All fees received by the
  671  office pursuant to this section must be submitted in the manner
  672  prescribed by the commission and must be deposited into the
  673  Financial Institutions’ Regulatory Trust Fund pursuant to s.
  674  655.049 for the purpose of administering this part. A complete
  675  biennial renewal of registration shall include a declaration
  676  under penalty of perjury, signed by the executive officer or
  677  managing member of the registrant, declaring that the
  678  information submitted for the purposes of renewal is true and
  679  correct to the best of his or her knowledge, and confirming or
  680  providing:
  681         (1)That the registrant is in compliance with this part.
  682         (2)The physical location of the principal place of
  683  business of the registrant.
  684         (3)The telephone number of the registrant.
  685         (4)The current financial institution-affiliated parties
  686  operating under the registration.
  687         (5)Any updates or changes in the information previously
  688  provided either in the initial registration or subsequent
  689  renewals that were not previously disclosed to the office.
  690         Section 15. Section 663.540, Florida Statutes, is created
  691  to read:
  692         663.540Civil action subpoena enforcement.—
  693         (1)Notwithstanding s. 655.059, an international trust
  694  entity’s limited service affiliate established under this
  695  chapter is not required to produce a book or record pertaining
  696  to a customer of the international trust entity’s offices that
  697  are located outside the United States or its territories in
  698  response to a subpoena if the book or record is maintained
  699  outside the United States or its territories and is not in the
  700  possession, custody, or control of the international trust
  701  entity’s limited service affiliate established in this state.
  702         (2)This section applies only to a subpoena issued pursuant
  703  to the Florida Rules of Civil Procedure, the Federal Rules of
  704  Civil Procedure, or other similar law or rule of civil procedure
  705  in another state or territory of the United States. This section
  706  does not apply to a subpoena issued by or on behalf of a
  707  federal, state, or local government law enforcement agency,
  708  administrative or regulatory agency, legislative body, or grand
  709  jury and does not limit the power of the office to access all
  710  books and records in the exercise of the office’s regulatory and
  711  supervisory powers under the financial institutions codes.
  712         Section 16. This act shall take effect January 1, 2018.