Sponsoring Organization's Proposal

 

[INSTRUCTION: A Sponsoring Organization's Proposal is to be submitted only as part of applications for sponsored TLDs. It should not be included with applications for unsponsored TLDs. It should be prepared and submitted by either the sponsoring organization or, where the sponsoring organization has not yet been formed, by organization(s) or person(s) proposing to form the sponsoring organization.

Sponsored TLDs will involve a more complex contractual structure. Applicants are urged to evaluate carefully whether to seek a sponsored or unsponsored TLD.

Please place the legend "CONFIDENTIAL" on any part of the Sponsoring Organization's Proposal that you have listed in item F3.1 of your Statement of Requested Confidential Treatment of Materials Submitted.

The Sponsoring Organization's Proposal should be separately bound and labeled: "Sponsoring Organization's Proposal" and should cover Sections I, II, and III below. This page, signed on behalf of the applicant(s), should be included in the Sponsoring Organization's Proposal.]

 

I.                   SPONSORING ORGANIZATION STRUCTURE

 

 

 

The Monaco Banking Association (AMB) is proposing to form the sponsoring organization.

 

It was therefore felt that a brief presentation of the Association, its role and functions, would be useful background for ICANN.

 

The Monaco Banking Association (AMB) is a private and non-profit legal entity, fully incorporated in the Principality of Monaco and whose statutes or bylaws have been formally approved by the Government of Monaco.

It has been in existence for over 50 years and is the only professional and representative organization for bank and finance activities. (See the bylaws attached in appendix C01)

 

The Board   of the Banking Association is currently composed of 8 members including its President (See list attached in appendix C02).

All members are chief executives in their respective banking institutions in Monaco and serve one year renewable terms for this non paid activity. They represent a wide cross section of senior executives having had a distinguished career in some of the most reputable international banks.

 

The President of the Association, Etienne Franzi, a Monegasque citizen and former member of the Principality’s government in the Principally, is Managing Director of Compagnie Monegasque de Banque, one of the Monaco’s leading private banks. in the principality.

 

He is assisted full time in the management of the Association by a senior Bbanker, Mr. Alain Sauzier, formerly Managing Director of Société Générale in Monaco (general delegate).

 

The members of the Board share different responsibilities in respect to the business, i.e. banking regulations, admission of new members,social employment matters, development of Monaco as a financial center, ethical and code of conduct compliance matters issues.

 

In Monaco The AMB supervises 45 banks and 24 financial institutions in Monaco, including some representative offices from foreign banks.

 

By convention, Monaco has signed special entered into specific banking and financial agreements with France and as such it certain of the Principality’s banking oversight responsibilities are sharedshares with that neighboring country. some banking oversight responsibilities. This is reflected in the fact that the Bank of France (equivalent to the Federal Reserve) and the French Banking Commission regulate bank ratios, equity requirements and participate in the granting of new bank licenses in Monaco.

 

Coupled with Together with numerous the regulatory controls exerted by the Monegasque authorities, this ranks Monaco at the highest European level in terms of safety for the investor.

 

As one might anticipate, the law applied in Monaco is not the English common law but rather a system very close to the law prevailing in France and continental Europe generally.

 

The mission and functions of the organization are specifically spelled out in the bylaws although the list is not limitative.

 

For instance the crucial issue of money laundering is a top priority for the association in close cooperation with the Government. Enforcing a code of conduct among banks and promoting ethical values also rank high.

 

The allentire financial community is served by the association,. All authorized financial operators (banks, brokerage houses and fund management companies) therefore contributes to its operating budget and elects every year a new Board reporting to the General Assembly made up of all the members.

 

The limited size of the country and a membership of some 70 members entities facilitates communication and ensures that the community to be served can be heard and is fully associated to all projects.

 

The present application for a registry would create substantial added value to the many efforts conducted by the Government and the Association to foster the growing recognition of Monaco as a strong European Financial Center

 

 


 

C1. Please submit a comprehensive description of the structure and nature of the sponsoring organization and the manner in which that organization will conduct its operations, including policy-formulation activities. We strongly recommend retaining professional legal assistance to aid in the formulation of your Sponsoring Organization's Proposal and accompanying documents.

 

The following documents should be attached to the description:

·         articles of incorporation, association, etc.;

·         Bylaws or any similar organizational document;

·         List of persons presently on the supervising Board of the organization (or to be initially on the Board); and

·         Their resumes.

·          

The name of the sponsoring organization will be:

 

Financial Internet Domain Association (FIDA)

 

The draft of the bylaws of this Association is attached in Appendix C1.

 

To the extent applicable and not clear from the attached documents, the description should address the following topics in detail.

 

C2. Organization Information. Principal location, legal status of the organization, laws under which it is organized, type of organization (for profit, non-profit, corporation, association, etc.).

 

The SO will be organized under the laws of the Principality of Monaco, and specifically Law n. 1072 of 27 June 1984 (“Law 1072” or the “Law”).

 

Law 1072 regulates entities created for not-for-profit purposes all which, if created by non-Monaco nationals require the authorization of the government.

 

A number of other international associations have been authorized under this status and are headquartered in Monaco. Among these are: A.G.F.I.S., (General Association of International Sports Federations); A.M.A.D.E. Mondial (I do not know what AMADE stands for Association Monégasque d’Aide et Defence de l’Enfance); the International Amateur Athletics Federation; Pacific Asia Travel Association; Sportel Organisation; the International Hydrographic Bureau.

 

The principal location will be Monaco.

 

C3. Organization Structure. Size of organization, number of officers, directors and advisors, roles/duties of directors and officers and other staff, supporting and/or contributing organizations, affiliates, membership.

A board of 11 members.

For a 2-year interim period, the members will be selected by AMB and internationally recognized personalities of the financial world after according to rules such as:

-         Each continent shall be represented

-         Members shall be appointed as follows: 2 members among from the banking community, 2 members amongfrom the i insurance community; 2 brokers, 2 financial product distributors and 3 persons belonging to world financial institutions…

-         The Chairman shall be elected by members of the board.

-         Dot finance registrants will be automatically members of the sponsoring organization

At the end of the interim period, the bylaws of the sponsoring organization designed by the interim Board and its lawyers will have to be approved by the dot finance registrants and new members of the Board will be elected by the dot finance registrants.

The Board will be assisted by a general manager and an assistant.

 

C4. Organization Purpose. Functions and mission of the organization, definition of community to be served (if any), method of ensuring operation in the interest of the stakeholders of the community to be served and the Internet at large.

The proposed statutes state the objectives of the Association as follows: “To promote the interests of the international financial community by supporting and regulating the activities of the Internet domain “FINANCE” attributed by ICANN which domain is dedicated to the members of the financial community” (see appendix C1 article 2).

 

C5. Appropriateness of Community. If the organization is intended to serve or represent a particular community, define the community and explain why that definition fits the TLD proposal.

The goal of the proposal is to make available to the financial community a new top level domain exclusively dedicated to the corporations and the professionals operating in the finance sector.

 

The evolution of this sector through the past years has been marked by the interpenetration of formerly very distinct activities such as commercial banking, investment banking, insurance, asset management.

 

The corporations and the finance  professionals of the finance using dot fin will make their businesses more readily accessible to other corporations and individuals.

           

Being a restricted name domain, their domain name will act as a much more accurate identifyer/qualifier of their business activities.

 

C6. Representation. Manner in which the organization will represent and take input from community to be served, the categories of stakeholder to be included in the organization.

During the interim period, the composition of the SO Board will ensure that all segments of the financial sector are represented. Active contacts will be established with national and international professional organizations in order to design the final bylaws and rules that can be acceptable for a majority of them.

Registrants are members as of right of the Association for so long as theretheir domain name registration is active, is renewed, and that the person or entity involved does not cease its activity or is removed from the Association.

 

Honorary Members as well as Benefactors may be named. A Founding member will be the Association Monégasque des Banques.

The Board will have the power specifically to establish the regulations applicable to the commercial companies that will be the registrars, as well as to the persons or entities registering domain names.

 

The Statutes at Article 8, alinea 3, provide that the first board will be appointed for a two-year period by the Founding Members.

 

C7. Openness and Transparency. Measures taken to promote openness and transparency, access to information, web site use, public posting of information, meeting minutes, notice and comment provisions.

The Statutes provide that Board Minutes and Annual accounts must be posted on the Internet site, and that the Board may electronically request input or a vote from the membership outside of the general Assemblies.

Forums and electronic votes will be regularly organised to have an input from the users on particular issues.

C8. Initial Directors and Staff. The identity and qualifications of the initial directors and staff.

Initial directors will be appointed by the Board and the staff will be appointed from the initial directors.

It is premature to disclose the name of the persons that have been contacted with a view to join the SO.

 

C9. Selection of Directors, Officers, Members, Staff, etc. Eligibility, method of selection, term of service, compensation, liability, conflicts of interest, resignation, removal, vacancies.

The Directors are selected by the General Assembly (after the second year). They serve for three years and may be re-elected. After the second year from the establishment of the Association, one-third the directors will be re-elected.

 

Board Members can be removed at the end of the term by the General Assembly, or at any time through a special meeting of the General Assembly.

 

At Article 11 it is provided that the Board may delegate its Powers to its members or to third parties, and may hire staff.  The staff members will be salaried employees.

 

Directors and Officers will have be covered by an insurance. As to conflicts of interest, we will include a statement that Board Members would be exceptedexpected not to participate in any decisions in which they may have a conflict of interest.

 

C10. Policy-Making Procedure. Provide a detailed description of the process for formulating policies for the TLD, including a detailed description of the requirements for adoption of different types of policy.

           

The Board can establish policy and it may consult with the membership.

Important board decisions proposals will be posted on the web for a period of 4 weeks prior to a Board vote. Comments will be discussed and considered by the board in making their final decision.

 

C11. Meetings and Communication. Frequency of meetings, location of meetings, provisions for telephone meetings, other methods of communication, generation of minutes for meetings.

 

The General Assembly must meet at least once a year. The Board meets as often as necessary. Both the Board and General Assembly may allow participation and voting by telephone, electronically and by proxy.

           

C12. Fiscal Information. Initial budget, expenses, existing capital, sources of revenue, accounting, audit, annual report and annual statement.

The members are non-dues paying, since they are automatically members upon registration of the domain name. The Association is strictly not-for-profit and may not distribute profits to its members.

 

The costs incurred by the Sponsoring Organization are totally supported by the registry operator.

           

Each of the eleven members of the Board will receive an yearly indemnity and a financial allowance to cover its travel and accommodation expenses.

           

Legal costs paid by the Sponsoring Organization are expected to be particularly high in year 1. These legal expenses correspond to the formation of the sponsoring organization's own bylaws. For the following years, an average cost of 150,000, then 100,000 EUR has been projected as a provision for the legal treatment of possible litigations.

 

A detailed budget is included in the Registry Operators’ Proposal (Appendix D13.2.).

 

C13. Liability. Liability of the organization, directors, officers, and staff.

 

An Association is a legal entity and it may therefore sue and be sued. The liability of the membership as a result is however unclear both in French and Monaco law. It is generally thought that only members who also participate in the management of the Association may have a personal liability in that respect. Staff and directors may have personal liability for any act for which they have personally been found negligent.

           

Under Monaco law an Association may not be found guilty of a crime. The Directors however may have an “objective” responsibility for the infraction.

 

C14. Amendment of Articles of Incorporation or Bylaws. Procedures for making amendments to the articles of incorporation, bylaws, and other organizational documents.

           

All amendments to the bylaws require the authorization of the government, and will be voted by the General Assembly.

 

C15. Reconsideration and Review. Any policy for allowing reconsideration and review of organization policy or implementation decisions.

The policies of the Association as regards both registrars and registrants will be established by the Board (under article 7) but can be reviewed by the Assembly which, by a request formulated by 1/4 of its members, may request a general meeting.

 

 

II. PROPOSED EXTENT OF POLICY-FORMULATION AUTHORITY

[INSTRUCTION: This section is intended to address the extent of the policy authority to be delegated, NOT the specific policies proposed. Specific policies should be described in the Description of Proposed TLD Policies part of the application.]

 

 

 

C16. List and describe in detail the areas over which a delegation of policy-formulation authority is sought. For each area in which policy authority is sought, please address:

C16.1. Scope of authority sought;

The statutes specify that the regulation of the proposed use of the Dot finance TLD will be established by the Board of the Association.

The management of  policy, the registry policy, registrars policy, contracts with registrants and dispute registration policy should will be delegated to the FIDA.

 

C16.2. Reasons/justifications for seeking authority;

No efficient implementation of policy can be accomplished without at least the previous input from the membership it is sought to serve.authority delegation stated above.

FIDA’s members are registrants. They are entitled to regulate their TLD with regards to common practices and needs in of the financial industry.

 

 

C16.3. Method of guaranteeing that your organization will administer the policy in the interest of the Internet at large

The organization is designed to be democratic. Provisions will be made to allow any registrant to express its point of view through electronic voting systems.

The iInternet at large will benefit from this organization in a better DNS administration.

The existence of a regulated FINANCE domain name will improve the informed investor’s perception of the integrity of the financial information available on the Internet by seeking to exclude unlicensed financial operators.      

C16.4. Whether variation from existing ICANN policies is intended at the opening of the new TLD.

We strictly comply to ICANN policy in the management of the TLD.

 

III. CONTRACT TERMS WITH REGISTRY OPERATOR

[INSTRUCTION: Sponsoring organizations are responsible for securing an initial registry operator for the proposed TLD and ensuring that the registry operator completes the Registry Operator's Proposal. Sponsoring organizations should also enter detailed contracts for the provision of registry operation services. These contracts should address all of the required functions as outlined in the Registry Operator's Proposal.]

 

C17. Identification of Registry Operator. Please list the full legal name, principal address, telephone and fax numbers, and e-mail address of the registry operator:

 

Full legal name: SAM NETBAY

Principal address: 24 Boulevard Princesse Charlotte MC 98000 MONACO

Telephone number: +377 97 97 21 21

Fax number: +377 97 97 21 22

e-mail address: ph@netbayregistry.net

 

C18. Contract with Registry Operator. Please attach one of the following:

C18.1. A copy of your contract with the selected registry operator for provision of registry services;

N/A

C18.2. Proposed terms for a contract (i.e. at least a detailed term sheet) with a registry operator for provision of registry services, proof of commitment from the registry operator for provision of services under those proposed terms, and a notation of the estimated date of entry into the contract

See appendix C18.2

C18.3. A statement that the sponsoring organization will also serve as the registry operator for the proposed TLD. (In this case, the sponsoring organization must prepare and submit the Registry Operator's Proposal in addition to the Sponsoring Organization's Proposal.)

N/A

By signing this proposal, the undersigned attests, on behalf of the applicant(s), that the information contained in this application, and all supporting documents included with this application, are true and accurate to the best of applicant's knowledge.

 

_______________________________
Signature

 

_______________________________
Name (please print)

Etienne Franzi

_______________________________
Title

Président

_______________________________
Name of Applicant Entity

Association Monégasque des Banques

_______________________________
Date

28/09/2000