New Hampshire Revised Statutes 383-C:14-1402 – Exemption from Regular Examination
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(a) A trust company may apply for an exemption from one regular examination under N.H. Rev. Stat. § 383-C:14-1401 by filing with the commissioner an application for exemption.
(b) In accordance with N.H. Rev. Stat. § 383-A:6-604, the commissioner shall make a determination as to whether the trust company qualifies for a conditional exemption from examination.
(c) A trust company qualifies for a conditional exemption from examination if:
(1) The commissioner has deemed the application for exemption substantially complete under N.H. Rev. Stat. § 383-A:6-603 no sooner than 12 months and no later than 15 months after the date the commissioner signs the most recent report of examination;
(2) The trust company has received high ratings in each of its 2 most recent prior examinations;
(3) The trust company’s composite rating in its most recent prior examination is not less than its composite rating in its second most recent prior examination;
(4) The trust company files with the commissioner a copy of each financial audit report completed within 12 months after the conclusion of its most recent examination;
(5) Each financial audit report filed under subsection (c)(3) is:
(A) Made in accordance with N.H. Rev. Stat. § 383-A:5-509; and
(B) Is unqualified; and
(6) The trust company is not currently subject to any formal or informal enforcement proceeding or order of any regulatory authority.
(d) For purposes of subsection (c),the following shall apply:
(1) A trust company has received high ratings if the trust company received a rating of 1 or 2 in each of the components used under the Uniform Interagency Trust Rating System; and
(2) A trust company’s composite rating is its composite rating determined in accordance with the Uniform Interagency Trust Rating System.
(e) Subject to subsection (k), a trust company that qualifies for a conditional exemption from examination may be exempt from one regular examination under N.H. Rev. Stat. § 383-C:14-1401 if it satisfies the following conditions:
(1) The trust company files with the commissioner a copy of a fiduciary compliance audit report made in accordance with subsection (h) no sooner than 12 months and no later than 15 months after the date the commissioner signs the most recent report of examination;
(2) The trust company files with the commissioner a copy of each financial audit report completed after the trust company filed its application for exemption and on or before the trust company files the fiduciary compliance audit under subsection (e)(1);
(3) Each financial audit report filed under subsection (e)(2) is:
(A) Made in accordance with N.H. Rev. Stat. § 383-A:5-509; and
(B) Is unqualified; and
(4) The trust company is not currently subject to any formal or informal enforcement proceeding or order of any regulatory authority.
(f) Upon receipt of the reports described in subsections (e)(1) and (e)(2), the commissioner shall make a determination whether the trust company is exempt from examination under subsection (e).
(g) If, under subsection (f), the commissioner determines that the trust company is not exempt from examination, then the commissioner shall examine the condition and management of the trust company within 21 months after the conclusion of the trust company’s most recent examination.
(h) For purposes of subsection (e)(1), a fiduciary compliance audit report shall meet the following requirements:
(1) The report includes a review of each material aspect of the following components used under the Uniform Interagency Trust Rating System:
(A) Management;
(B) Operations, internal controls, and auditing;
(C) Compliance; and
(D) Asset management;
(2) The report conforms to applicable generally accepted auditing standards;
(3) The report is unqualified; and
(4) The report is completed no later than 3 months before the date on which the trust company files it with the commissioner.
(i) Based on the trust company’s safety and soundness, the commissioner:
(1) May waive the requirement under subsection (e)(1); or
(2) May accept any documents or other information that the commissioner deems a suitable substitute for a fiduciary compliance audit report made in accordance with subsection (h).
(j) The commissioner shall examine the condition and management of a trust company that is exempt from examination under subsection (e) no later than 36 months after the conclusion of its most recent prior examination.
(k) The commissioner may examine the condition and management of a trust company that is exempt from examination under subsection (e); at any time if, after qualifying for the exemption under subsection (e);
(1) The trust company receives a qualified financial audit report;
(2) The trust company receives an unqualified financial report that contains a statement identifying or otherwise disclosing a material deficiency concerning any of the following components used under the Uniform Interagency Trust Rating System:
(A) Management;
(B) Operations, internal controls, and auditing;
(C) Earnings;
(D) Compliance; or
(E) Asset management;
(3) The commissioner determines that the trust company’s safety and soundness might have been materially impaired; or
(4) The trust company becomes subject to any formal or informal enforcement proceeding or order of any regulatory authority.
(b) In accordance with N.H. Rev. Stat. § 383-A:6-604, the commissioner shall make a determination as to whether the trust company qualifies for a conditional exemption from examination.
Terms Used In New Hampshire Revised Statutes 383-C:14-1402
- Fiduciary: A trustee, executor, or administrator.
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
(c) A trust company qualifies for a conditional exemption from examination if:
(1) The commissioner has deemed the application for exemption substantially complete under N.H. Rev. Stat. § 383-A:6-603 no sooner than 12 months and no later than 15 months after the date the commissioner signs the most recent report of examination;
(2) The trust company has received high ratings in each of its 2 most recent prior examinations;
(3) The trust company’s composite rating in its most recent prior examination is not less than its composite rating in its second most recent prior examination;
(4) The trust company files with the commissioner a copy of each financial audit report completed within 12 months after the conclusion of its most recent examination;
(5) Each financial audit report filed under subsection (c)(3) is:
(A) Made in accordance with N.H. Rev. Stat. § 383-A:5-509; and
(B) Is unqualified; and
(6) The trust company is not currently subject to any formal or informal enforcement proceeding or order of any regulatory authority.
(d) For purposes of subsection (c),the following shall apply:
(1) A trust company has received high ratings if the trust company received a rating of 1 or 2 in each of the components used under the Uniform Interagency Trust Rating System; and
(2) A trust company’s composite rating is its composite rating determined in accordance with the Uniform Interagency Trust Rating System.
(e) Subject to subsection (k), a trust company that qualifies for a conditional exemption from examination may be exempt from one regular examination under N.H. Rev. Stat. § 383-C:14-1401 if it satisfies the following conditions:
(1) The trust company files with the commissioner a copy of a fiduciary compliance audit report made in accordance with subsection (h) no sooner than 12 months and no later than 15 months after the date the commissioner signs the most recent report of examination;
(2) The trust company files with the commissioner a copy of each financial audit report completed after the trust company filed its application for exemption and on or before the trust company files the fiduciary compliance audit under subsection (e)(1);
(3) Each financial audit report filed under subsection (e)(2) is:
(A) Made in accordance with N.H. Rev. Stat. § 383-A:5-509; and
(B) Is unqualified; and
(4) The trust company is not currently subject to any formal or informal enforcement proceeding or order of any regulatory authority.
(f) Upon receipt of the reports described in subsections (e)(1) and (e)(2), the commissioner shall make a determination whether the trust company is exempt from examination under subsection (e).
(g) If, under subsection (f), the commissioner determines that the trust company is not exempt from examination, then the commissioner shall examine the condition and management of the trust company within 21 months after the conclusion of the trust company’s most recent examination.
(h) For purposes of subsection (e)(1), a fiduciary compliance audit report shall meet the following requirements:
(1) The report includes a review of each material aspect of the following components used under the Uniform Interagency Trust Rating System:
(A) Management;
(B) Operations, internal controls, and auditing;
(C) Compliance; and
(D) Asset management;
(2) The report conforms to applicable generally accepted auditing standards;
(3) The report is unqualified; and
(4) The report is completed no later than 3 months before the date on which the trust company files it with the commissioner.
(i) Based on the trust company’s safety and soundness, the commissioner:
(1) May waive the requirement under subsection (e)(1); or
(2) May accept any documents or other information that the commissioner deems a suitable substitute for a fiduciary compliance audit report made in accordance with subsection (h).
(j) The commissioner shall examine the condition and management of a trust company that is exempt from examination under subsection (e) no later than 36 months after the conclusion of its most recent prior examination.
(k) The commissioner may examine the condition and management of a trust company that is exempt from examination under subsection (e); at any time if, after qualifying for the exemption under subsection (e);
(1) The trust company receives a qualified financial audit report;
(2) The trust company receives an unqualified financial report that contains a statement identifying or otherwise disclosing a material deficiency concerning any of the following components used under the Uniform Interagency Trust Rating System:
(A) Management;
(B) Operations, internal controls, and auditing;
(C) Earnings;
(D) Compliance; or
(E) Asset management;
(3) The commissioner determines that the trust company’s safety and soundness might have been materially impaired; or
(4) The trust company becomes subject to any formal or informal enforcement proceeding or order of any regulatory authority.