Amendment to Rules Regulating the Florida Bar

Summary

The Florida Supreme Court approved a petition to amend Rule 5-1.1(e) governing the Interest on Trust Accounts (IOTA) Program. The amendments expanded eligible institutions to include qualifying investment companies and permitted certain government-securities money market funds, while requiring interest-rate parity between IOTA and comparable non-IOTA accounts. The court made the amendments effective 30 days after the opinion and allowed existing participating institutions six months to comply.

Holdings

1. The court approved the petition and amended rule 5-1.1(e) as set forth in the appendix, incorporating revisions suggested by the Florida Bankers Association to clarify interest parity between IOTA accounts and comparable non-IOTA accounts.
2. The Florida Bar Foundation is charged with determining the initial and continuing eligibility of banks, savings and loan associations, and investment companies to hold IOTA accounts in accordance with the criteria in the amended rule.
3. The amendment became effective thirty days after the date of the opinion, and institutions then holding IOTA accounts that elected to participate under the new rule were given six months to comply with the new eligibility requirements.

Questions Presented

1. Whether the Supreme Court of Florida should approve the proposed amendments to rule 5-1.1(e) governing the Interest on Trust Accounts program.
2. Whether the Florida Bar Foundation should be responsible for determining the initial and continuing eligibility of institutions participating in the IOTA program.
3. What effective date and compliance period should apply to the amended rule.

Disposition

approved