Regulation No. 2011-06 - Implementing Regulation on Trusts and Supervision of Financial Trustees

IMPLEMENTING REGULATION
ON TRUSTS
AND SUPERVISION OF FINANCIAL TRUSTEES year 2011 / number 06 (Consolidated text as of 17/05/2021 – Update II)

Central Bank of the Republic of San Marino
Regulation No. 2011-06 implementing regulation on trusts and supervision of financial trustees (Update II)
PART I
INTRODUCTION
Article 1 - Definitions

1. For the purposes of this Regulation, the expressions used shall be understood with the following meaning:
2. "Central Bank": the Central Bank of the Republic of San Marino governed by Law 29 June 2005 no. 96 and subsequent amendments;
3. "Trustee Decree": Delegated Decree 16 March 2010 no. 49 and subsequent amendments;
4. "Trust Law": Law 1 March 2010 no. 42 and subsequent amendments;
5. "Lisf": Law 17 November 2005 no. 165 and subsequent amendments;
6. "High-risk Countries": the countries, jurisdictions or territories referred to in Article 16-undecies of Law 17 June 2008 no. 92 and subsequent amendments;
7. "Trustee Office Manager": the person appointed within the company authorized under Regulation BCSM no. 2010-01 and subsequent amendments to perform the office of trustee in accordance with the provisions of the aforementioned Regulation;
8. "Financial Trustee": trustee falling within the definition of "financial enterprises" under Article 1, paragraph 1, of Law 23 February 2006 no. 47 and subsequent amendments;
9. "Professional Financial Trustee": financial trustee registered in the register of authorized trustees under Article 2, paragraph 7, of Delegated Decree 16 March 2010 no. 49 and subsequent amendments.
10. In the remainder of the text, the use of defined terms is highlighted in UPPERCASE.
11. For all terms not defined in paragraph 1, reference is made to the definitions contained in the TRUST LAW and the LISF.
    Article 2 - Legislative Sources
12. This Regulation implements all references to supervisory authority measures contained in the TRUST LAW and listed below:

• Article 28 paragraph 5, regarding the presentation of the Event Book to the Supervisory Authority;
• Article 33 paragraph 3, regarding the identification of countries whose banks or investment firms cannot be delegated the choice of investments by the trustee.
  Article 3 - Purposes

1. This Regulation aims to collect in a single measure every secondary regulatory intervention delegated to the CENTRAL BANK by the TRUST LAW, thereby completing, with the implementing Regulation of the TRUSTEE DECREE, all delegated legislation on trusts.

Central Bank of the Republic of San Marino
Regulation No. 2011-06 implementing regulation on trusts and supervision of financial trustees (Update II)
Article 4 - Recipients

1. Part II of this Regulation is addressed

• in Title I: to all subjects exercising the office of trustee under the TRUST LAW;
• in Title II: to all subjects authorized under the LISF - and consequently subject to the supervision of the CENTRAL BANK - who exercise the office of trustee under the TRUST LAW;
• in Title III: to all subjects authorized under the LISF - and consequently subject to the supervision of the CENTRAL BANK - who exercise the office of trustee, even if below the threshold provided for professional exercise or applying different regulatory laws than the San Marinese one.
  PART II
  PROVISIONS
  Title I
  Power of delegation of trustees
  Article 5 – Identification of Countries under Art. 33 paragraph 3 of the TRUST LAW

1. In implementation of what is provided by Article 33 paragraph 3 of the TRUST LAW, the choice of investments cannot be delegated by the trustee to banks or investment firms established or administered in HIGH-RISK COUNTRIES.
   Article 6 – Subsequent loss of status
2. In cases where the Country is inserted into the list of HIGH-RISK COUNTRIES at a time subsequent to the granting of the delegation, the trustee must proceed without delay to the revocation of the delegation.
3. For the purposes above, the trustee has the burden of inserting into the act of granting the delegation a precise obligation of communication on the part of the delegated bank or investment firm.
   Title II
   Presentation of the Event Book
   Article 7 – Presentation of the Event Book to the CENTRAL BANK
4. FINANCIAL TRUSTEES, being supervised by the CENTRAL BANK, are obliged to present the Event Book for the trusts administered, not only upon request by the guardian, the Judicial Authority, and the Central Liaison Office, but also upon request by the CENTRAL BANK, which will assume the information contained therein for supervisory purposes regarding the trustee.

Central Bank of the Republic of San Marino
Regulation No. 2011-06 implementing regulation on trusts and supervision of financial trustees (Update II)
Article 8 – Methods of presentation

1. The presentation of the Event Book to the CENTRAL BANK can occur either by "documentary" method or by "inspection" method.
2. In the case of the "documentary" method, the FINANCIAL TRUSTEE must send to the CENTRAL BANK, upon request sent by registered mail with return receipt, an authentic and complete copy of the Event Book for each of the trusts administered or only for the one(s) nominally indicated in the request, within and no later than 5 working days from receipt of the registered letter; in the case where the FINANCIAL TRUSTEE is a PROFESSIONAL FINANCIAL TRUSTEE, the copies transmitted, in addition to being authenticated by a San Marinese public notary, must also be signed by the TRUSTEE OFFICE MANAGER.
3. In the case of the "inspection" method, the FINANCIAL TRUSTEE must promptly deliver the requested Event Book to the inspection unit of the CENTRAL BANK conducting the checks: PROFESSIONAL FINANCIAL TRUSTEES must also ensure that the TRUSTEE OFFICE MANAGER provides the necessary cooperation to the inspection unit for the correct and complete acquisition of information.
   Article 9 – Methods of conservation
4. FINANCIAL TRUSTEES, also for the purposes of the previous article, must constantly keep the Event Book of each trust at their legal or administrative headquarters, even in cases where the TRUSTEE OFFICE MANAGER is domiciled elsewhere.
   Title III
   Informational supervision provisions on financial trustees
   Article 10 – Informational supervision on FINANCIAL TRUSTEES
5. FINANCIAL TRUSTEES, even if not falling into the category of PROFESSIONAL FINANCIAL TRUSTEES because they exercise the office of trustee for no more than one trust, must send to the CENTRAL BANK, with reference to each calendar semester and by the end of the month following it, a report containing:
   a) aggregated data relating to their exercise of the office of trustee, for each semester deadline; b) an Analytical Inventory of Assets (briefly IAB) for each trust administered, only coinciding with the report on December 31.
   Article 11 – Content of the Analytical Inventory of Assets
6. The IAB must analytically record, with reference to each trust fund, the asset composition as of December 31 of the previous year.

Central Bank of the Republic of San Marino
Regulation No. 2011-06 implementing regulation on trusts and supervision of financial trustees (Update II)
Article 12 – Reporting schema

1. FINANCIAL TRUSTEES, for the purposes above, must compile the reporting schema, in the updated version published in the reserved area of the CENTRAL BANK's website.
   Article 13 – Operational manual
2. In the reserved area of the CENTRAL BANK's website, the manual containing operational indications for entering data into the schema referred to in the previous article, as well as the technical methods of transmitting the report, will also be published.
   Title IV
   Final and transitional provisions
   Article 14 – Repeals
3. As a result of what is provided in the previous Title, Article III.II.1 paragraph 2 of Regulation no. 2010-01 is simplified as follows:
   "2. The PROFESSIONAL TRUSTEE, together with the documentation referred to in the previous paragraph, must transmit to the CENTRAL BANK a copy of the certificate of participation in the training course for updating, carried out in the previous calendar year, referred to in the subsequent Article IV.I.3, paragraph 5."
   Article 15 – Entry into force
4. This Regulation enters into force on December 30, 2011.
5. Regarding the quarterly report, complete with the IAB, referred to December 31, 2011, the deadline for sending to the CENTRAL BANK is extended to March 31, 2012.