Nev. Admin. Code § 669A.200

Current through October 11, 2024

Section 669A.200 - Off-site examination, independent review or on-site examination: When required; notice of examination; fees

1. Except as otherwise provided in subsection 2, each licensed family trust company shall undergo an off-site examination or an independent review more than 1 year but not more than 2 years after the date on which its license was issued and shall subsequently undergo:

(a) An on-site examination or, if the Commissioner determines an off-site examination would be appropriate, an off-site examination, within 1 year after the date on which the Division delivers to the licensed family trust company a report of examination which rates the licensed family trust company as "unsatisfactory" or "needs improvement"; and

(b) An off-site examination or an independent review within 3 years after the date on which the Division delivers to the licensed family trust company a report of examination which rates the licensed family trust company as "satisfactory."

2. The Commissioner may require an on-site examination of a licensed family trust company at a time other than those specified in subsection 1 if the Commissioner determines that such an examination is necessary or appropriate under the circumstances to ensure that the licensed family trust company is complying with the provisions of this chapter and chapter 669A of NRS.

3. Each examination must determine whether the licensed family trust company has complied with the provisions of this chapter and chapter 669A of NRS during the examination period.

4. The Division will provide a notice of examination to a licensed family trust company by certified mail, return receipt requested, indicating that the licensed family trust company is subject to an examination, setting forth the examination period, setting the date by which all information and documentation required for the examination must be provided and including the examination guidance:

(a) Not more than 1 year after a licensed family trust company is initially issued a license or 30 days after the close of the first fiscal year for financial reporting purposes of a licensed family trust company, whichever is earlier;

(b) On or before November 15 of the year before the year in which an examination is required pursuant to paragraph (b) of subsection 1;

(c) At least 30 days before an examination is required pursuant to paragraph (a) of subsection 1; and

(d) At the time an examination is commenced pursuant to subsection 2.

5. The Commissioner will charge a fee at the rate of $75 per hour for each hour spent by the staff of the Division to conduct an examination, and collect the fee from the licensed family trust company being examined, for each on-site examination or off-site examination conducted pursuant to this chapter. The Commissioner will bill the licensed family trust company upon the completion of the examination for the fee established in this subsection. The fee must be paid within 30 days after the date on which the bill is received. Except as otherwise provided in this subsection, any payment received after that date must include a penalty of 10 percent of the fee plus an additional 1 percent of the fee for each month, or portion of a month, that the fee is not paid. The Commissioner may waive the penalty for good cause. The failure of a licensed family trust company to pay the fee required in this subsection constitutes grounds for the revocation of its license.

6. In addition to the fee required by subsection 6 of section 24 of this regulation for the administrative review of an independent review report by the Division, a licensed family trust company shall pay the fees and costs incurred by the qualified firm it retains to perform the independent review.

Nev. Admin. Code § 669A.200

Added to NAC by Comm'r of Financial Institutions by R051-16, eff. 1/1/2017

NRS 658.101, 669A.260, 669A.270

REVISER'S NOTE.

The regulation of the Commissioner of Financial Institutions filed with the Secretary of State on June 28, 2016, and which became effective on January 1, 2017, contains the following provision not included in NAC:

"Sec. 28. 1. Notwithstanding the provisions of section 21 of this regulation [NAC 669A.200], a licensed family trust company whose license was issued on or before December 31, 2015, must undergo an examination, as defined in section 10 of this regulation [NAC 669A.090], on or before December 31, 2017.

2. Notwithstanding the provisions of subsection 2 of section 29 of this regulation [effective January 1, 2017], the Division of Financial Institutions of the Department of Business and Industry will provide a notice of examination as described in section 21 of this regulation [NAC 669A.200] on or before November 15, 2016, to a licensed family trust company required to undergo an examination pursuant to subsection 1."