HB 1267: Family Trust Companies Summary

• Creates Chapter 662 Florida Statutes establishing regulatory framework for family trust companies - entities providing fiduciary services exclusively to family members (up to two families maximum) and related interests.

• Three company types authorized: unlicensed family trust companies, licensed family trust companies ($250,000-$350,000 minimum capital), and foreign licensed family trust companies, each with different registration and licensing requirements.

• Application and licensing requirements include $10,000 application fee for licensed entities, $5,000 registration fee for unlicensed/foreign companies, background checks on directors/officers, and minimum insurance coverage ($1 million fidelity bonds or errors and omissions insurance).

• Regulatory oversight by Office of Financial Regulation includes mandatory examinations every 18 months, fee-based examinations, grounds for license revocation, cease and desist authority, and removal authority for non-compliant affiliated parties.

• Operational restrictions prohibit advertising to public, commercial banking, and fiduciary services to general public; allows family trust companies to handle employee benefits (up to 35 non-family members) and grants specific investment authority with disclosure requirements.