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.
