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.