Florida Senate - 2022 SB 1680 By Senator Gruters 23-00513C-22 20221680__ 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 circumstances pursuant 14 to which the Office of Financial Regulation is 15 required to conduct certain examinations; authorizing 16 the office to delay examinations of state 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 state 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 assets, and the liabilities and assets 25 that may be assumed, according to certain procedures, 26 conditions, and limitations; specifying the basis for 27 calculating percentages of assets or liabilities; 28 revising the assets a mutual financial institution may 29 sell, subject to certain conditions; amending s. 30 655.50, F.S.; revising the definition of the term 31 financial institution; amending s. 657.021, F.S.; 32 requiring credit unions to submit specified 33 information to the office after certain meetings; 34 repealing s. 657.028(6), F.S., relating to credit 35 union board member, committee member, and officer 36 election and appointment record reporting 37 requirements; amending s. 658.12, F.S.; defining the 38 term target market; amending s. 658.20, F.S.; 39 requiring the office, upon receiving applications for 40 authority to organize a bank or trust company, to 41 investigate the need for new bank facilities in a 42 primary service area or for a target market and the 43 ability of such service area or target market to 44 support new and existing bank facilities; amending s. 45 658.21, F.S.; revising financial institution 46 application approval requirements to include 47 consideration of target market conditions; deleting a 48 requirement that certain proposed financial 49 institution presidents or chief executive officers 50 have certain experience within a specified timeframe; 51 amending s. 658.28, F.S.; requiring a person or group 52 to notify the office within a specified timeframe upon 53 acquiring a controlling interest in a bank or trust 54 company in this state; amending s. 658.2953, F.S.; 55 defining the term de novo branch; amending s. 56 662.1225, F.S.; revising the type of institution with 57 which certain family trust companies are required to 58 maintain a deposit account; amending s. 662.128, F.S.; 59 revising the timeframe for filing renewal applications 60 for certain family trust companies; amending s. 61 663.07, F.S.; revising the banks with which 62 international bank agencies or branches shall maintain 63 certain deposits; amending s. 663.532, F.S.; revising 64 references to lists of jurisdictions used for 65 qualifying qualified limited service affiliates; 66 requiring limited service affiliates to suspend 67 certain permissible activities under certain 68 circumstances; specifying that such suspensions remain 69 in effect until certain conditions are met; amending 70 s. 736.0802, F.S.; conforming a cross-reference; 71 reenacting s. 658.165(1), F.S., relating to bankers 72 banks, for the purpose of incorporating amendments 73 made by the act; providing an effective date. 74 75 Be It Enacted by the Legislature of the State of Florida: 76 77 Section 1.Paragraph (a) of subsection (3) of section 78 120.80, Florida Statutes, is amended to read: 79 120.80Exceptions and special requirements; agencies. 80 (3)OFFICE OF FINANCIAL REGULATION. 81 (a)Notwithstanding s. 120.60(1), in proceedings for the 82 issuance, denial, renewal, or amendment of a license or approval 83 of a merger pursuant to title XXXVIII: 84 1.a.The Office of Financial Regulation of the Financial 85 Services Commission shall have published in the Florida 86 Administrative Register notice of the application within 21 days 87 after receipt. 88 b.Within 21 days after publication of notice, any person 89 may request a hearing. Failure to request a hearing within 21 90 days after notice constitutes a waiver of any right to a 91 hearing. The Office of Financial Regulation or an applicant may 92 request a hearing at any time prior to the issuance of a final 93 order. Hearings shall be conducted pursuant to ss. 120.569 and 94 120.57, except that the Financial Services Commission shall by 95 rule provide for participation by the general public. 96 2.Should a hearing be requested as provided by sub 97 subparagraph 1.b., the applicant or licensee shall publish at 98 its own cost a notice of the hearing in a newspaper of general 99 circulation in the area affected by the application. The 100 Financial Services Commission may by rule specify the format and 101 size of the notice. 102 3.Notwithstanding s. 120.60(1), and except as provided in 103 subparagraph 4., an application for license for a new bank, new 104 trust company, new credit union, new savings and loan 105 association, or new licensed family trust company must be 106 approved or denied within 180 days after receipt of the original 107 application or receipt of the timely requested additional 108 information or correction of errors or omissions. An application 109 for such a license or for acquisition of such control which is 110 not approved or denied within the 180-day period or within 30 111 days after conclusion of a public hearing on the application, 112 whichever is later, shall be deemed approved subject to the 113 satisfactory completion of conditions required by statute as a 114 prerequisite to license and approval of insurance of accounts 115 for a new bank, a new savings and loan association, a new credit 116 union, or a new licensed family trust company by the appropriate 117 insurer. 118 4.In the case of an application for license to establish a 119 new bank, trust company, or capital stock savings association in 120 which a foreign national proposes to own or control 10 percent 121 or more of any class of voting securities, and in the case of an 122 application by a foreign national for approval to acquire 123 control of a bank, trust company, or capital stock savings 124 association, the Office of Financial Regulation shall request 125 that a public hearing be conducted pursuant to ss. 120.569 and 126 120.57. Notice of such hearing shall be published by the 127 applicant as provided in subparagraph 2. The failure of such 128 foreign national to appear personally at or to participate 129 through video conference in the hearing shall be grounds for 130 denial of the application. Notwithstanding s. 120.60(1) and 131 subparagraph 3., every application involving a foreign national 132 shall be approved or denied within 1 year after receipt of the 133 original application or any timely requested additional 134 information or the correction of any errors or omissions, or 135 within 30 days after the conclusion of the public hearing on the 136 application, whichever is later. 137 Section 2.Subsection (4) of section 475.01, Florida 138 Statutes, is amended to read: 139 475.01Definitions. 140 (4)A broker acting as a trustee of a trust created under 141 chapter 689 is subject to the provisions of this chapter unless 142 the trustee is a bank, state or federal association, or trust 143 company possessing trust powers as defined in s. 658.12(24) s. 144 658.12(23). 145 Section 3.Section 501.2076, Florida Statutes, is created 146 to read: 147 501.2076Violations involving consumer financial 148 institution account fees.The imposition of a fee or other 149 charge by a third party agent or entity directly or indirectly 150 upon a consumer for an online audit verification of an account 151 maintained by a financial institution as defined in s. 152 655.005(1)(i) or of the associated balance of such account is a 153 violation of this part. 154 Section 4.Section 518.117, Florida Statutes, is amended to 155 read: 156 518.117Permissible investments of fiduciary funds.A 157 fiduciary that is authorized by lawful authority to engage in 158 trust business as defined in s. 658.12(21) s. 658.12(20) may 159 invest fiduciary funds in accordance with s. 660.417 so long as 160 the investment otherwise complies with this chapter. 161 Section 5.Paragraph (a) of subsection (1) and subsection 162 (4) of section 655.045, Florida Statutes, are amended, and 163 paragraph (f) is added to subsection (1) of that section, to 164 read: 165 655.045Examinations, reports, and internal audits; 166 penalty. 167 (1)The office shall conduct an examination of the 168 condition of each state financial institution at least every 18 169 months. The office may conduct more frequent examinations based 170 upon the risk profile of the financial institution, prior 171 examination results, or significant changes in the institution 172 or its operations. The office may use continuous, phase, or 173 other flexible scheduling examination methods for very large or 174 complex state financial institutions and financial institutions 175 owned or controlled by a multi-financial institution holding 176 company. The office shall consider examination guidelines from 177 federal regulatory agencies in order to facilitate, coordinate, 178 and standardize examination processes. 179 (a)The office may accept an examination of a state 180 financial institution made by an appropriate federal regulatory 181 agency or may conduct a joint or concurrent examination of the 182 institution with the federal agency. However, if the office 183 accepts an examination report in accordance with this paragraph, 184 the office shall conduct at least once during each 36-month 185 period beginning July 1, 2023 2014, a subsequent the office 186 shall conduct an examination of each state financial institution 187 in a manner that allows the preparation of a complete 188 examination report not subject to the right of a federal or 189 other non-Florida entity to limit access to the information 190 contained therein. The office may furnish a copy of all 191 examinations or reviews made of financial institutions or their 192 affiliates to the state or federal agencies participating in the 193 examination, investigation, or review, or as otherwise 194 authorized under s. 655.057. 195 (f)In coordinating an examination required under this 196 section, if a federal agency suspends or cancels a previously 197 scheduled examination of a state financial institution, the 198 office has an additional 90 days to meet the examination 199 requirement of this section. In such case, the requirement is 200 deemed met by the federal agency conducting the examination or 201 upon the office conducting the examination instead. 202 (4)A copy of the report of each examination must be 203 furnished to the state financial institution entity examined and 204 presented to the board of directors at its next regular or 205 special meeting. Each director shall review the report and 206 acknowledge receipt of the report and such review by signing and 207 dating the prescribed signature page of the report and returning 208 a copy of the signed page to the office. 209 Section 6.Section 655.414, Florida Statutes, is amended to 210 read: 211 655.414Acquisition of assets; assumption of liabilities. 212 With prior approval of the office, and upon such conditions as 213 the commission prescribes by rule, a financial institution 214 entity may acquire 50 percent or more all or substantially all 215 of the assets of, liabilities of, or a combination of assets and 216 or assume all or any part of the liabilities of, any other 217 financial institution in accordance with the procedures and 218 subject to the following conditions and limitations: 219 (1)CALCULATION OF ASSET OR LIABILITY PERCENTAGES. 220 Percentages of assets or liabilities must be calculated based on 221 the most recent quarterly reporting date. 222 (2)ADOPTION OF A PLAN.The board of directors of the 223 acquiring or assuming financial entity and the board of 224 directors of the transferring financial institution must adopt, 225 by a majority vote, a plan for such acquisition, assumption, or 226 sale on terms that are mutually agreed upon. The plan must 227 include: 228 (a)The names and types of financial institutions involved. 229 (b)A statement setting forth the material terms of the 230 proposed acquisition, assumption, or sale, including the plan 231 for disposition of all assets and liabilities not subject to the 232 plan. 233 (c)A provision for liquidation, if applicable, of the 234 transferring financial institution upon execution of the plan, 235 or a provision setting forth the business plan for the continued 236 operation of each financial institution after the execution of 237 the plan. 238 (d)A statement that the entire transaction is subject to 239 written approval of the office and approval of the members or 240 stockholders of the transferring financial institution. 241 (e)If a stock financial institution is the transferring 242 financial institution and the proposed sale is not for cash, a 243 clear and concise statement that dissenting stockholders of the 244 institution are entitled to the rights set forth in s. 658.44(4) 245 and (5). 246 (f)The proposed effective date of the acquisition, 247 assumption, or sale and such other information and provisions as 248 necessary to execute the transaction or as required by the 249 office. 250 (3)(2)APPROVAL OF OFFICE.Following approval by the board 251 of directors of each participating financial institution, the 252 plan, together with certified copies of the authorizing 253 resolutions adopted by the boards and a completed application 254 with a nonrefundable filing fee, must be forwarded to the office 255 for approval or disapproval. The office shall approve the plan 256 of acquisition, assumption, or sale if it appears that: 257 (a)The resulting financial entity or entities would have 258 an adequate capital structure in relation to their activities 259 and their deposit liabilities; 260 (b)The plan is fair to all parties; and 261 (c)The plan is not contrary to the public interest. 262 263 If the office disapproves the plan, it shall state its 264 objections and give the parties an opportunity to amend the plan 265 to overcome such objections. 266 (4)(3)VOTE OF MEMBERS OR STOCKHOLDERS.If the office 267 approves the plan, it may be submitted to the members or 268 stockholders of the transferring financial institution at an 269 annual meeting or at a special meeting called to consider such 270 action. Upon a majority vote of the total number of votes 271 eligible to be cast or, in the case of a credit union, a 272 majority vote of the members present at the meeting, the plan is 273 adopted. 274 (5)(4)ADOPTED PLAN; CERTIFICATE; ABANDONMENT. 275 (a)If the plan is adopted by the members or stockholders 276 of the transferring financial institution, the president or vice 277 president and the cashier, manager, or corporate secretary of 278 such institution shall submit the adopted plan to the office, 279 together with a certified copy of the resolution of the members 280 or stockholders approving it. 281 (b)Upon receipt of the certified copies and evidence that 282 the participating financial institutions have complied with all 283 applicable state and federal law and rules, the office shall 284 certify, in writing, to the participants that the plan has been 285 approved. 286 (c)Notwithstanding approval of the members or stockholders 287 or certification by the office, the board of directors of the 288 transferring financial institution may abandon such a 289 transaction without further action or approval by the members or 290 stockholders, subject to the rights of third parties under any 291 contracts relating thereto. 292 (6)(5)FEDERALLY CHARTERED OR OUT-OF-STATE INSTITUTION AS A 293 PARTICIPANT.If one of the participants in a transaction under 294 this section is a federally chartered financial institution or 295 an out-of-state financial institution, all participants must 296 also comply with requirements imposed by federal and other state 297 law for the acquisition, assumption, or sale and provide 298 evidence of such compliance to the office as a condition 299 precedent to the issuance of a certificate authorizing the 300 transaction; however, if the purchasing or assuming financial 301 institution is a federal or out-of-state state-chartered 302 financial institution and the transferring state financial 303 entity will be liquidated, approval of the office is not 304 required. 305 (7)(6)STOCK INSTITUTION ACQUIRING MUTUAL INSTITUTION.A 306 mutual financial institution may not sell 50 percent or more all 307 or substantially all of its assets to a stock financial 308 institution until it has first converted into a capital stock 309 financial institution in accordance with s. 665.033(1) and (2). 310 For this purpose, references in s. 665.033(1) and (2) to 311 associations also refer to credit unions but, in the case of a 312 credit union, the provision concerning proxy statements does not 313 apply. 314 Section 7.Paragraph (c) of subsection (3) of section 315 655.50, Florida Statutes, is amended to read: 316 655.50Florida Control of Money Laundering and Terrorist 317 Financing in Financial Institutions Act. 318 (3)As used in this section, the term: 319 (c)Financial institution has the same meaning as in s. 320 655.005(1)(i), excluding an international representative office, 321 an international administrative office, or a qualified limited 322 service affiliate means a financial institution, as defined in 323 31 U.S.C. s. 5312, as amended, including a credit card bank, 324 located in this state. 325 Section 8.Present subsections (2) through (8) of section 326 657.021, Florida Statutes, are redesignated as subsections (3) 327 through (9), respectively, and a new subsection (2) is added to 328 that section, to read: 329 657.021Board of directors; executive committee 330 responsibilities; oaths; reports to the office. 331 (2)Within the 30 days following the annual meeting or any 332 other meeting at which any director, officer, member of the 333 supervisory or audit committee, member of the credit committee, 334 or credit manager is elected or appointed, the credit union 335 shall submit to the office the names and residence addresses of 336 the elected or appointed person or persons on a form adopted by 337 the commission and provided by the office. 338 Section 9.Subsection (6) of section 657.028 is repealed. 339 Section 10.Present subsections (20) through (24) of 340 section 658.12, Florida Statutes, are redesignated as 341 subsections (21) through (25), respectively, and a new 342 subsection (20) is added to that section, to read: 343 658.12Definitions.Subject to other definitions contained 344 in the financial institutions codes and unless the context 345 otherwise requires: 346 (20)Target market means the group of clients or 347 potential clients from whom: 348 (a)A bank or proposed bank expects to draw deposits and to 349 whom the bank or proposed bank focuses or intends to focus its 350 marketing efforts; or 351 (b)A trust company, a trust department of a bank or 352 association, a proposed trust company, or a proposed trust 353 department of a bank or an association expects to draw its 354 fiduciary accounts and to whom the trust company, the trust 355 department of a bank or association, the proposed trust company, 356 or the proposed trust department of a bank or association 357 focuses or intends to focus its marketing efforts. 358 Section 11.Paragraphs (b) and (c) of subsection (1) of 359 section 658.20, Florida Statutes, are amended to read: 360 658.20Investigation by office. 361 (1)Upon the filing of an application, the office shall 362 make an investigation of: 363 (b)The need for bank or trust facilities or additional 364 bank or trust facilities, as the case may be, in the primary 365 service area where the proposed bank or trust company is to be 366 located or for the target market that the bank or trust company 367 intends to engage with in business. 368 (c)The ability of the primary service area or target 369 market to support the proposed bank or trust company and all 370 other existing bank or trust facilities that serve the same 371 primary service area or target market in the primary service 372 area. 373 Section 12.Subsections (1) and (4) of section 658.21, 374 Florida Statutes, are amended to read: 375 658.21Approval of application; findings required.The 376 office shall approve the application if it finds that: 377 (1)Local and target market conditions indicate reasonable 378 promise of successful operation for the proposed state bank or 379 trust company. In determining whether an applicant meets the 380 requirements of this subsection, the office shall consider all 381 materially relevant factors, including: 382 (a)The purpose, objectives, and business philosophy of the 383 proposed state bank or trust company. 384 (b)The projected financial performance of the proposed 385 bank or trust company. 386 (c)The feasibility of the proposed bank or trust company, 387 as stated in the business plan, particularly with respect to 388 asset and liability growth and management. 389 (4)The proposed officers have sufficient financial 390 institution experience, ability, standing, and reputation and 391 the proposed directors have sufficient business experience, 392 ability, standing, and reputation to indicate reasonable promise 393 of successful operation, and none of the proposed officers or 394 directors has been convicted of, or pled guilty or nolo 395 contendere to, any violation of s. 655.50, relating to the 396 control of money laundering and terrorist financing; chapter 397 896, relating to offenses related to financial institutions; or 398 similar state or federal law. At least two of the proposed 399 directors who are not also proposed officers must have had at 400 least 1 year of direct experience as an executive officer, 401 regulator, or director of a financial institution within the 5 402 years before the date of the application. However, if the 403 applicant demonstrates that at least one of the proposed 404 directors has very substantial experience as an executive 405 officer, director, or regulator of a financial institution more 406 than 5 years before the date of the application, the office may 407 modify the requirement and allow the applicant to have only one 408 director who has direct financial institution experience within 409 the last 5 years. The proposed president or chief executive 410 officer must have had at least 1 year of direct experience as an 411 executive officer, director, or regulator of a financial 412 institution within the last 5 years. 413 Section 13.Present subsections (2), (3), and (4) of 414 section 658.28, Florida Statutes, are redesignated as 415 subsections (3), (4), and (5), respectively, and a new 416 subsection (2) is added to that section, to read: 417 658.28Acquisition of control of a bank or trust company. 418 (2)If a person or a group of persons, directly or 419 indirectly, acquires a controlling interest in a state bank or 420 state trust company, as contemplated by this section, through 421 probate or trust, the person or group of persons shall notify 422 the office within 90 days after acquiring such an interest. Such 423 an interest does not give rise to a presumption of control until 424 the person or group of persons votes the shares or the office 425 has issued a certificate of approval in response to an 426 application pursuant to subsection (1). 427 Section 14.Present paragraphs (a), (b), and (c) of 428 subsection (11) of section 658.2953, Florida Statutes, are 429 redesignated as paragraphs (b), (c), and (d), respectively, and 430 a new paragraph (a) is added to that subsection, to read: 431 658.2953Interstate branching. 432 (11)DE NOVO INTERSTATE BRANCHING BY STATE BANKS. 433 (a)As used in this subsection, the term de novo branch 434 means a branch of a bank which is originally established by the 435 bank as a branch and does not become a branch of such bank as a 436 result of: 437 1.The banks acquisition of another bank or of a branch of 438 another bank; or 439 2.The conversion, merger, or consolidation of any bank or 440 branch. 441 Section 15.Paragraph (d) of subsection (1) of section 442 662.1225, Florida Statutes, is amended to read: 443 662.1225Requirements for a family trust company, licensed 444 family trust company, or foreign licensed family trust company. 445 (1)A family trust company or a licensed family trust 446 company shall maintain: 447 (d)A deposit account with: 448 1.A bank located in the United States and insured by the 449 Federal Deposit Insurance Corporation; or 450 2.A credit union located in the United States and insured 451 by the National Credit Union Administration with a state 452 chartered or national financial institution that has a principal 453 or branch office in this state. 454 Section 16.Subsection (1) of section 662.128, Florida 455 Statutes, is amended to read: 456 662.128Annual renewal. 457 (1)Within 45 days after the end of each calendar year, A 458 family trust company, licensed family trust company, or foreign 459 licensed family trust company shall file an its annual renewal 460 application with the office on an annual basis no later than 45 461 days after the anniversary of the filing of either the initial 462 application or the prior years renewal application. 463 Section 17.Subsection (1) of section 663.07, Florida 464 Statutes, is amended to read: 465 663.07Asset maintenance or capital equivalency. 466 (1)Each international bank agency and international branch 467 shall: 468 (a)Maintain with one or more banks insured by the Federal 469 Deposit Insurance Corporation and located within the United 470 States in this state, in such amounts as the office specifies, 471 evidence of dollar deposits or investment securities of the type 472 that may be held by a state bank for its own account pursuant to 473 s. 658.67. The aggregate amount of dollar deposits and 474 investment securities for an international bank agency or 475 international branch shall, at a minimum, equal the greater of: 476 1.Four million dollars; or 477 2.Seven percent of the total liabilities of the 478 international bank agency or international branch excluding 479 accrued expenses and amounts due and other liabilities to 480 affiliated branches, offices, agencies, or entities; or 481 (b)Maintain other appropriate reserves, taking into 482 consideration the nature of the business being conducted by the 483 international bank agency or international branch. 484 485 The commission shall prescribe, by rule, the deposit, 486 safekeeping, pledge, withdrawal, recordkeeping, and other 487 arrangements for funds and securities maintained under this 488 subsection. The deposits and securities used to satisfy the 489 capital equivalency requirements of this subsection shall be 490 held, to the extent feasible, in one or more state or national 491 banks located in this state or in a federal reserve bank. 492 Section 18.Present subsections (4), (5), and (6) of 493 section 663.532, Florida Statutes, are redesignated as 494 subsections (5), (6), and (7), respectively, a new subsection 495 (4) is added to that section, and paragraphs (i) and (j) of 496 subsection (1) of that section are amended, to read: 497 663.532Qualification. 498 (1)To qualify as a qualified limited service affiliate 499 under this part, a proposed qualified limited service affiliate 500 must file a written notice with the office, in the manner and on 501 a form prescribed by the commission. Such written notice must 502 include: 503 (i)A declaration under penalty of perjury signed by the 504 executive officer, manager, or managing member of the proposed 505 qualified limited service affiliate that, to the best of his or 506 her knowledge: 507 1.No employee, representative, or agent provides, or will 508 provide, banking services; promotes or sells, or will promote or 509 sell, investments; or accepts, or will accept, custody of 510 assets. 511 2.No employee, representative, or agent acts, or will act, 512 as a fiduciary in this state, which includes, but is not limited 513 to, accepting the fiduciary appointment, executing the fiduciary 514 documents that create the fiduciary relationship, or making 515 discretionary decisions regarding the investment or distribution 516 of fiduciary accounts. 517 3.The jurisdiction of the international trust entity or 518 its offices, subsidiaries, or any affiliates that are directly 519 involved in or facilitate the financial services functions, 520 banking, or fiduciary activities of the international trust 521 entity is not listed on the Financial Action Task Forces list 522 of High-Risk Jurisdictions subject to a Call for Action or list 523 of Jurisdictions under Increased Monitoring Force Public 524 Statement or on its list of jurisdictions with deficiencies in 525 anti-money laundering or counterterrorism. 526 (j)For each international trust entity that the proposed 527 qualified limited service affiliate will provide services for in 528 this state, the following: 529 1.The name of the international trust entity; 530 2.A list of the current officers and directors of the 531 international trust entity; 532 3.Any country where the international trust entity is 533 organized or authorized to do business; 534 4.The name of the home-country regulator; 535 5.Proof that the international trust entity has been 536 authorized by charter, license, or similar authorization by its 537 home-country regulator to engage in trust business; 538 6.Proof that the international trust entity lawfully 539 exists and is in good standing under the laws of the 540 jurisdiction where it is chartered, licensed, or organized; 541 7.A statement that the international trust entity is not 542 in bankruptcy, conservatorship, receivership, liquidation, or in 543 a similar status under the laws of any country; 544 8.Proof that the international trust entity is not 545 operating under the direct control of the government or the 546 regulatory or supervisory authority of the jurisdiction of its 547 incorporation, through government intervention or any other 548 extraordinary actions, and confirmation that it has not been in 549 such a status or under such control at any time within the prior 550 3 years; 551 9.Proof and confirmation that the proposed qualified 552 limited service affiliate is affiliated with the international 553 trust entities provided in the notice; and 554 10.Proof that the jurisdictions where the international 555 trust entity or its offices, subsidiaries, or any affiliates 556 that are directly involved in or that facilitate the financial 557 services functions, banking, or fiduciary activities of the 558 international trust entity are not listed on the Financial 559 Action Task Forces list of High-Risk Jurisdictions subject to a 560 Call for Action or list of Jurisdictions under Increased 561 Monitoring Force Public Statement or on its list of 562 jurisdictions with deficiencies in anti-money laundering or 563 counterterrorism. 564 565 The proposed qualified limited service affiliate may provide 566 additional information in the form of exhibits when attempting 567 to satisfy any of the qualification requirements. All 568 information that the proposed qualified limited service 569 affiliate desires to present to support the written notice must 570 be submitted with the notice. 571 (4)The qualified limited service affiliate shall suspend 572 the permissible activities provided in s. 663.531 relating to a 573 specific jurisdiction if the qualified limited service affiliate 574 becomes aware that the jurisdiction of an international trust 575 entity served by the qualified limited service affiliate is 576 included on the Financial Action Task Forces list of High-Risk 577 Jurisdictions subject to a Call for Action or list of 578 Jurisdictions under Increased Monitoring. Suspensions under this 579 subsection must remain in effect until the jurisdiction is 580 removed from the Financial Action Task Forces list of High Risk 581 Jurisdictions subject to a Call for Action or list of 582 Jurisdictions under Increased Monitoring. 583 Section 19.Paragraph (a) of subsection (5) of section 584 736.0802, Florida Statutes, is amended to read: 585 736.0802Duty of loyalty. 586 (5)(a)An investment by a trustee authorized by lawful 587 authority to engage in trust business, as defined in s. 588 658.12(21) s. 658.12(20), in investment instruments, as defined 589 in s. 660.25(6), that are owned or controlled by the trustee or 590 its affiliate, or from which the trustee or its affiliate 591 receives compensation for providing services in a capacity other 592 than as trustee, is not presumed to be affected by a conflict 593 between personal and fiduciary interests provided the investment 594 otherwise complies with chapters 518 and 660 and the trustee 595 complies with the requirements of this subsection. 596 Section 20.For the purpose of incorporating the amendment 597 made by this act to section 658.20, Florida Statutes, in a 598 references thereto, subsection (1) of section 658.165, Florida 599 Statutes, is reenacted to read: 600 658.165Bankers banks; formation; applicability of 601 financial institutions codes; exceptions. 602 (1)If authorized by the office, a corporation may be 603 formed under the laws of this state for the purpose of becoming 604 a bankers bank. An application for authority to organize a 605 bankers bank is subject to ss. 658.19, 658.20, and 658.21, 606 except that s. 658.20(1)(b) and (c) and the minimum stock 607 ownership requirements for the organizing directors provided in 608 s. 658.21(2) do not apply. 609 Section 21.This act shall take effect July 1, 2022.