Effective 28 Aug 2017

362.1090. Cease and desist order — notice of charges, when, procedure. — 1. The secretary or the secretary's designee may issue and serve upon a family trust company or family trust company affiliated party a notice of charges if the secretary or the secretary's designee has reason to believe that such company, family trust company affiliated party, or individual named therein is engaging in or has engaged in any of the following acts:

(1) The family trust company fails to satisfy the requirements of a family trust company or foreign family trust company under sections 362.1010 to 362.1117;

(2) A violation of section 362.1035, 362.1040, 362.1050, 362.1055, 362.1060, or 362.1080;

(3) A violation of any rule of the secretary;

(4) A violation of any order of the secretary;

(5) A breach of any written agreement with the secretary;

(6) A prohibited act or practice under section 362.1065;

(7) A willful failure to provide information or documents to the secretary upon written request;

(8) An act of commission or omission that is judicially determined by a court of competent jurisdiction to be a breach of trust or fiduciary duty; or

(9) A violation of state or federal law related to anti-money laundering, customer identification, or any related rule or regulation.

2. The notice of charges shall contain a statement of facts and notice of opportunity for a hearing.

3. If no hearing is requested within thirty days after the date of service of the notice of charges or if a hearing is held and the secretary or secretary's designee finds that any of the charges are true, the secretary or secretary's designee may enter an order directing the family trust company, family trust company affiliated party, or the individual named in the notice of charges to cease and desist such conduct and to take corrective action.

4. A contested or default cease and desist order is effective when reduced to writing and served upon the family trust company, family trust company affiliated party, or the individual named therein. An uncontested cease and desist order is effective as agreed.

5. If the secretary or the secretary's designee finds that conduct described under subsection 1 of this section is likely to cause substantial prejudice to members, shareholders, beneficiaries of fiduciary accounts of the family trust company, or beneficiaries of services rendered by the family trust company, the secretary or the secretary's designee may issue an emergency cease and desist order requiring the family trust company, family trust company affiliated party, or individual named therein to immediately cease and desist from engaging in the conduct stated and to take corrective action. The emergency order is effective immediately upon service of a copy of the order upon the family trust company or family trust company affiliated party and shall remain effective for ninety days. If the secretary or the secretary's designee begins nonemergency cease and desist proceedings under subsection 1 of this section, the emergency order shall remain effective until the conclusion of the proceedings under this section.

6. A family trust company shall have ninety days to wind up its affairs after entry of any order to cease and desist from operating as a family trust company. If a family trust company that is not a foreign family trust company is still operating after ninety days, the secretary or the secretary's designee may seek an order from a circuit court for the annulment or dissolution of the company. If a foreign family trust company is still operating after ninety days, the secretary or the secretary's designee may seek an injunction from a circuit court restraining the company from continuing to operate in this state.

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(L. 2017 H.B. 292)