Florida Banking June 2024

Additionally, all Florida chartered financial institutions are required to attest, under penalty of perjury, that they are complying with the new law. HB 3 also required all QPDs, regardless of charter, to attest that they are in compliance with the same law when they submit their annual report to the CFO’s office in November. Should the QPD fail to do so, it will be removed as a QPD. 2024 – HB 989 Last year’s HB 3 did not subject all financial institutions doing business in Florida to the new law. Any financial institution chartered by the federal government or another state, and not a QPD, did not have to comply with the law. This year’s HB 989 increases the universe of financial institutions that must comply with last year’s bill, so that all financial institutions, regardless of charter or status as a QPD, must file an attestation of compliance with OFR by July 1 . This means all FBA members must file an attestation with OFR by July 1. Moreover, HB 989 provides that a customer may file a complaint against any financial institution it believed violated the unsafe and unsound banking practices outlined above within 30 days after the violation has occurred. After receiving the complaint, OFR must notify the financial institution that a complaint has been filed and the financial institution has 90 days to

respond to the complaint. The law does not appear to differentiate between charters and will apply to all financial institutions. OFR then has 30 days after completion of the investigation to create a report. The report must then be sent to the customer and the financial institution. Should OFR find a violation has occurred, it must notify the customer, the Florida Department of Financial Services (DFS) and the office of the state attorney in the judicial circuit in which the action took place, or the Florida Attorney General. A violation of the code will subject the financial institution to the fines and penalties under the Florida financial institution codes and the financial institution could be subject to the Florida Deceptive and Unfair Trade Practices Act and the penalties therein, plus one-way attorney fees and costs to the prosecuting authority, if successful. We expect the bill to be signed into law once presented to the Governor. OFR must formally engage in rulemaking for any documents or procedures needed for the customer-complaint process, and perhaps, for a new attestation form. We will update you as this unfolds. Please take the necessary steps to comply with the law. Feel free to contact me with any questions.

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WWW.FLORIDABANKERS.COM JUNE 2024 — 17