Fla. Admin. Code Ann. R. 69V-559.1021 - Application Evaluation

(1) Upon review of all application information, if the Office determines that the application is complete, the applicant will be notified by email of the application completion date and the date the Office must approve or deny the license application.

(2) Following a determination that the application is complete, the Office shall review all application information and evaluate the information by using the following factors:

(a) The nature of the innovative financial product or service proposed to be made available to consumers in the Financial Technology Sandbox, including all relevant technical details. At a minimum, this includes the following:

1. A full technical description of the innovative financial product or service;

2. How the product or service will be delivered to customers;

3. How customers will interact with the applicant;

4. How the product or service will benefit customers;

5. How the product or service is different from other products or services available in this state;

6. All technical specifications necessary to determine that the applicant has adequately developed the product or service and can handle the anticipated volume of customer transactions; and

7. A copy of the test plan and results demonstrating that the applicant has satisfactorily tested the information technology platform and approved it for production.

(b) The potential risk to consumers and the methods that will be used to protect consumers and resolve complaints during the sandbox period. At a minimum, this includes the following:

1. What risks will confront consumers that use or purchase the product or service;

2. A copy of the applicant's cybersecurity policy designed to detect, contain, and eliminate cyber security attacks;

3. A copy of any other policies designed to protect the customer's personal identifying information from a breach or attack;

4. How the applicant will wind down operations and protect customers and their funds in the event the applicant is not successful with its innovative financial product or service; and

5. A copy of the applicant's complaint procedures including how the customer contacts the applicant to file a complaint, procedures for handling complaints, complaint escalation hierarchy, and the name and contact information of the individual(s) who will serve as the liaison for resolving complaints filed with the Office.

(c) The business plan proposed by the applicant, including company information, market analysis, and financial projections or pro forma financial statements, and evidence of the financial viability of the applicant. At a minimum, this information includes:

1. A complete organizational chart of the applicant.

2. A market analysis which must include, but not be limited to, the following information:

a. Customer description depicting the consumers in the applicant's intended market and their income, buying habits, geographic location or age;

b. Customer perception indicating how the targeted demographic perceives the business and the product or service including how likely the intended customers are to buy the product or service;

c. Market trends which combines the information from the customer description, perception and market trends and forecasts the future of the target market, as wells as the applicant's place in the future of the market; and

d. Identification of the applicant's competition and how consumers will view the applicant's product in relation to its competitor's products or services and the likelihood that the applicant will be successful in the same marketplace as competitors.

3. Financial projections or pro forma financial statements including estimated revenues, total liabilities and costs, and estimated cash flow.

4. Evidence of financial viability of the applicant shall include at a minimum the amount and quality of liquid assets compared to the total of all assets and identification of access to additional capital to support growth of the applicant.

(d) Whether the applicant has the necessary personnel, adequate financial and technical expertise, and a sufficient plan to test, monitor, and assess the innovative financial product or service. At a minimum, this information includes:

1. A resume detailing the education and work experience of each person listed on the applicant's organization chart required in subparagraph (c)1. above; and

2. A copy of the applicant's proposed plan for how it will test the innovative product or service during the sandbox period and any sandbox period extension to ensure compliance with Section 559.952, F.S. and related rules, and to ensure compliance with Chapters 516 and 560, F.S., and related rules applicable to the innovative product or service. The plan should include how the applicant will monitor the product's or service's transactions and performance in order to assess whether there is an increased risk to consumers or viability of the applicant to continue offering its product or services to consumers. The plan must include a requirement to document the testing, monitoring, and assessment of the product or service and the applicant's personnel responsible for these tasks; and the plan must include organizational reporting and escalation procedures.

(e) Whether any control person of the applicant, regardless of adjudication, has pled no contest to, or has been convicted or found guilty of, or is currently under investigation for fraud, a state or federal securities violation, a property-based offense, or a crime involving moral turpitude or dishonest dealing. If an applicant answers affirmatively to disclosure questions in the application or if a criminal background check discloses an offense identified in this paragraph, the applicant must provide upon request, documents from a custodian of the records indicating the details necessary for the Office to identify the outcome of each offense. Documents shall include, but not be limited to, copies of certified court documents and final orders including settlement agreements from the issuing agency.

(f) A copy of the disclosures required under Section 559.952(6)(b), F.S.

(g) The financial responsibility of the applicant and any control person, including whether the applicant or any control person has a history of unpaid liens, unpaid judgments, or other general history of nonpayment of legal debts, including, but not limited to, having been the subject of a petition for bankruptcy under the United States Bankruptcy Code within the past 7 calendar years. Applicants who answer in the affirmative to disclosure questions in the application disclosing an offense identified in this paragraph, must provide, upon request, documents from a custodian of records indicating the details necessary for the Office to identify the outcome of each offense. Documents shall include, but not be limited to, copies of certified court documents demonstrating a lien or judgment has been satisfied, account statements or credit reports indicating the satisfactory payment of legal debts, and copies of documents from a bankruptcy court.

(3) Upon evaluation by the Office of all information and supporting documentation provided in the application, the Office will contact the applicant and schedule a consultation to discuss the Office's review and anticipated decision. In addition, during the consultation, the Office will advise the applicant of the number of consumers authorized to receive the innovative financial product or service if the application is approved. The consultation will be scheduled within 60-days of the date the application is deemed completed unless the applicant provides written authorization for an extension of time for the Office to make a decision on the application

Notes

Fla. Admin. Code Ann. R. 69V-559.1021

Rulemaking Authority 559.952(5), 559.952(11)(a) FS. Law Implemented 559.952(5), 559.952(6)(b), 559.952(11)(a) FS.

Adopted by Florida Register Volume 47, Number 002, January 5, 2021 effective 1/18/2021.

New 1-18-21.