CS for SB 1238 - Family Trust Companies

• Creates Chapter 662, Florida Statutes to establish licensing and regulation of family trust companies serving only family members (up to two designated families) and related trusts and entities.

• Allows family trust companies to operate either unlicensed or licensed; licensed family trust companies must maintain minimum capital ($250,000 for one designated relative, $350,000 for two) and procure fidelity bonds and errors and omissions insurance.

• Licensed family trust companies must apply through the Office of Financial Regulation with a $10,000 application fee; unlicensed family trust companies and foreign licensed family trust companies must register with a $5,000 registration fee.

• Permits family trust companies to serve up to 35 non-family-member employees and restricts activities to serving family members only, prohibiting commercial banking, public fiduciary services, and advertising to the public.

• Subjects licensed family trust companies to examination at least every 18 months by the Office of Financial Regulation and establishes grounds for license revocation, cease and desist orders, and removal of officers or managers; allows family trust companies to invest in securities and conduct transactions with family members under specific conditions outlined in section 662.132.