Nevada Administrative Code
Chapter 669A - Family Trust Companies
Section 669A.260 - Report of examination and independent review report; ratings; authorized enforcement actions and corrective action; retention or destruction of records by Division; confidentiality of reports

Universal Citation: NV Admin Code 669A.260

Current through December 12, 2024

1. Within 60 days after the completion of an on-site examination or off-site examination of a licensed family trust company or the filing of an independent review report, the Division will prepare and deliver to the licensed family trust company a report of examination that:

(a) Identifies any deficiency or weakness which requires corrective action;

(b) Identifies any client complaint which requires further response by the management of the licensed family trust company; and

(c) Assigns a rating of "satisfactory," "needs improvement" or "unsatisfactory" to the licensed family trust company based on the results of the examination, the compliance of the licensed family trust company with the provisions of this chapter and chapter 669A of NRS and the capability and willingness of the board and the management of the licensed family trust company to take corrective action.

2. The Division will assign a rating of:

(a) "Satisfactory" to a licensed family trust company that is fundamentally sound, complies with the provisions of this chapter and chapter 669A of NRS in all substantial respects and exhibits only moderate deficiencies or minor weaknesses which are within the capability and willingness of the management of the licensed family trust company to correct.

(b) "Needs improvement" to a licensed family trust company that generally complies with the provisions of this chapter and chapter 669A of NRS and exhibits some degree of supervisory concern in one or more areas where moderate deficiencies or weaknesses are present which are within the capability and willingness of the board and the management of the licensed family trust company to correct.

(c) "Unsatisfactory" to a licensed family trust company that does not generally comply with the provisions of this chapter and chapter 669A of NRS and exhibits some degree of supervisory concern in one or more areas where a combination of deficiencies or material weakness exists which may range from moderate to severe.

3. The Commissioner may, on the basis of an "unsatisfactory" rating:

(a) Revoke the license of the licensed family trust company pursuant to NRS 669A.280;

(b) Order the removal of any number of persons from the management of the licensed family trust company pursuant to NRS 669A.300;

(c) Impose and collect an administrative fine pursuant to NRS 669A.320; and

(d) Take any other enforcement action authorized by law.

4. The Commissioner may require a licensed family trust company that is assigned a rating of "unsatisfactory" to submit to a compliance and periodic reporting plan administered by the licensed family trust company or a third party to enforce any corrective action identified in the examination. The Commissioner may establish such terms and conditions for a compliance and periodic reporting plan as he or she deems advisable and require the licensed family trust company to pay all costs relating to the compliance and periodic reporting plan.

5. The management of a licensed family trust company shall provide the report of examination and the management's written response to any corrective action required by the Division to the board. If the report of examination rates the licensed family trust company as "needs improvement" or "unsatisfactory," the management of the licensed family trust company must comply with this subsection within 30 days after receiving the report of examination.

6. If no action is pending against a licensed family trust company as a result of an examination, the Division will securely and confidentially maintain or destroy all documentation submitted in the course of an examination, other than the documents required to be filed with the Division, in accordance with the policies of the Division for the retention and destruction of records.

7. A report of examination and an independent review report are confidential and subject to the provisions of NRS 669A.310.

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

NRS 669A.270

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