Current through February 27, 2024
1. A licensed family trust company which
received a rating of "satisfactory" on its most recent examination or which has
not yet undergone an examination may elect to undergo an independent review. A
licensed family trust company that elects to undergo an independent review must
provide notification of such an election to the Division within 30 days after
receipt of its notice of examination provided pursuant to section 21 of this
regulation. The Division will provide written confirmation to the licensed
family trust company that its examination will be conducted by means of
independent review within 30 days after receiving the licensed family trust
company's notification of election.
2. An independent review must be conducted by
a person who:
(a) Uses professional standards
for conducting the independent review which are promulgated by the American
Institute of Certified Public Accountants, the Institute of Internal Auditors
or the Bank Administration Institute;
(b) Is independent from the licensed family
trust company and is not owned or controlled by any stockholder, member, owner,
affiliate, family affiliate, family member, client or employee of the licensed
family trust company;
(c) Does not
share a material business or financial interest with the licensed family trust
company;
(d) Ensures that the
independent review is supervised by a certified public accountant in good
standing with the American Institute of Certified Public Accountants and in
each state in which the accountant is licensed to practice, a certified
internal auditor or certified financial services auditor in good standing with
the Institute of Internal Auditors or a certified bank auditor in good standing
with the Bank Administration Institute; and
(e) Maintains in good standing all licenses
and registrations necessary to perform the services included in an independent
review.
3. A qualified
firm performing an independent review shall comply with the professional
standards promulgated by the American Institute of Certified Public
Accountants, the Institute of Internal Auditors or the Bank Administration
Institute, as appropriate, and the provisions of this chapter and chapter 669A
of NRS. The qualified firm must ensure that the scope of the independent review
meets or exceeds the provisions of the examination guidance and any written
clarification or modification of the examination guidance issued by the
Commissioner to the licensed family trust company pursuant to subsection 1 of
section 26 of this regulation.
4.
Upon the completion of an independent review, the qualified firm shall prepare
a written independent review report. The independent review report must:
(a) Confirm that the qualified firm performed
the independent review using the policies and procedures adopted by the
licensed family trust company relating to the management, operation and
administration of its trust business and the information and documentation
provided in response to the notice of examination;
(b) Identify any deficiency noted during the
independent review;
(c) Identify any
client complaints;
(d) Identify any
failure by the licensed family trust company to respond to the notice of
examination;
(e) Comment on the
cooperation of the management of the licensed family trust company during the
independent review;
(f) Review the
compliance of the licensed family trust company with the provisions of this
chapter and chapter 669A of NRS; and
(g) Include the written response by the
management of the licensed family trust company to any deficiency, corrective
action or client complaint, if applicable.
5. A licensed family trust company that
undergoes an examination by means of independent review shall file with the
Division, on or before September 30 of the year in which the independent review
is conducted:
(a) The independent review
report prepared by the qualified firm conducting the independent review;
and
(b) The audited financial
statements of the licensed family trust company for the examination period
prepared by a certified public accountant, including, without limitation, a
description of the accounting method in use by the licensed family trust
company.
6. Upon the
filing of an independent review report, the Division will:
(a) Perform an administrative review of the
independent review report to ensure that:
(1)
The person engaged by the licensed family trust company to perform the
independent review satisfies the requirements of subsection 2;
(2) The independent review and the
independent review report comply with the provisions of this chapter;
(3) Each deficiency, client complaint and
corrective action identified in the independent review report were reported to
the management of the licensed family trust company;
(4) The written response of the management of
the licensed family trust company to each deficiency, client complaint or
corrective action is reasonably adequate to ensure the compliance of the
licensed family trust company with this chapter and chapter 669A of NRS;
and
(5) The licensed family trust
company complies with the requirements of this chapter and chapter 669A of NRS;
and
(b) Assess the
licensed family trust company which is the subject of the independent review
report a fee of $1,000 for its administrative review of the independent review
report.
Added to NAC
by Comm'r of Financial Institutions by
R051-16,
eff. 1/1/2017
NRS
658.101,
669A.260,
669A.270
