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</o:shapelayout></xml><![endif]--></head><body lang=ES link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span lang=EN-US style='color:#1F497D'>Kirk, I´m not sure about this idea (and didn´t in the EV guidelines) but here are some concerns:<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoListParagraphCxSpFirst style='text-indent:-18.0pt;mso-list:l0 level1 lfo3'><![if !supportLists]><span lang=EN-US style='color:#1F497D'><span style='mso-list:Ignore'>-<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='color:#1F497D'>If a CA exists the certificate business for whatever reason and cease its operations, according to the most of the European countries law the supervisory body can assign another CA to take over that CA businesses if not reached an agreement before, so no need to have that minimum capital, which by the way is covered when you register/create the company<o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l0 level1 lfo3'><![if !supportLists]><span lang=EN-US style='color:#1F497D'><span style='mso-list:Ignore'>-<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='color:#1F497D'>From the ETSI point of view, the standards used to audit CAs are technical standards, based on the CA businesses but this seems more a kind of financial assessment which OTOH every EU company has to do once a year, but done by different auditors or with different standards and schemes.<o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l0 level1 lfo3'><![if !supportLists]><span lang=EN-US style='color:#1F497D'><span style='mso-list:Ignore'>-<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='color:#1F497D'>As per the 3 options you indicate I have my concern:<o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='margin-left:72.0pt;mso-add-space:auto;text-indent:-18.0pt;mso-list:l0 level2 lfo3'><![if !supportLists]><span lang=EN-US style='font-family:"Courier New";color:#1F497D'><span style='mso-list:Ignore'>o<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='color:#1F497D'>What is a liquid asset?<o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='margin-left:72.0pt;mso-add-space:auto;text-indent:-18.0pt;mso-list:l0 level2 lfo3'><![if !supportLists]><span lang=EN-US style='font-family:"Courier New";color:#1F497D'><span style='mso-list:Ignore'>o<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='color:#1F497D'>What is a quick ratio? How is that measure?<o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='margin-left:72.0pt;mso-add-space:auto;text-indent:-18.0pt;mso-list:l0 level2 lfo3'><![if !supportLists]><span lang=EN-US style='font-family:"Courier New";color:#1F497D'><span style='mso-list:Ignore'>o<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='color:#1F497D'>Retain earnings? Maybe in the US or for the big ones, but the smallest CAs can´t retain earnings.<o:p></o:p></span></p><p class=MsoListParagraphCxSpLast style='text-indent:-18.0pt;mso-list:l0 level1 lfo3'><![if !supportLists]><span lang=EN-US style='color:#1F497D'><span style='mso-list:Ignore'>-<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US style='color:#1F497D'>The current national law on every EU county indicates that every CA has to have an insurance of whatever (it´s on every country to decide the amount) and the new regulation says that we need a “kind of” insurance (still to be developed but it will go on that way). If you´re suggesting not having an insurance, in which all the EU CAs will be obligated to have, but this financial responsibility, that will add another issue for the EU CAs and if the aim is not having so US-centric language and have new/small CAs on board, I think this is going on the contrary<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'>Regards<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='line-height:9.75pt'><b><span lang=ES-TRAD style='font-size:8.5pt;font-family:"Tahoma","sans-serif";color:black'>Iñigo Barreira</span></b><span lang=ES-TRAD style='font-size:8.5pt;font-family:"Tahoma","sans-serif";color:black'><br>Responsable del Área técnica<br><a href="mailto:i-barreira@izenpe.net">i-barreira@izenpe.net</a><o:p></o:p></span></p><p class=MsoNormal><span lang=ES-TRAD style='font-size:8.5pt;font-family:"Tahoma","sans-serif";color:black'>945067705</span><span lang=ES-TRAD style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span lang=ES-TRAD style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><img border=0 width=585 height=111 id="Imagen_x0020_1" src="cid:image001.png@01CFF8E6.21345CC0" alt="Descripción: cid:image001.png@01CE3152.B4804EB0"></span><span lang=ES-TRAD style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='line-height:9.75pt'><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif";color:#888888;mso-fareast-language:ES-TRAD'>ERNE! Baliteke mezu honen zatiren bat edo mezu osoa legez babestuta egotea. Mezua badu bere hartzailea. Okerreko helbidera heldu bada (helbidea gaizki idatzi, transmisioak huts egin) eman abisu igorleari, korreo honi erantzuna. KONTUZ!</span><span style='color:#888888;mso-fareast-language:ES-TRAD'><br></span><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif";color:#888888;mso-fareast-language:ES-TRAD'>ATENCION! Este mensaje contiene informacion privilegiada o confidencial a la que solo tiene derecho a acceder el destinatario. Si usted lo recibe por error le agradeceriamos que no hiciera uso de la informacion y que se pusiese en contacto con el remitente.</span><span style='font-size:12.0pt;color:navy;mso-fareast-language:ES-TRAD'><o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0cm 0cm 0cm'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>De:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> public-bounces@cabforum.org [mailto:public-bounces@cabforum.org] <b>En nombre de </b>kirk_hall@trendmicro.com<br><b>Enviado el:</b> miércoles, 05 de noviembre de 2014 1:01<br><b>Para:</b> CABFPub (public@cabforum.org)<br><b>Asunto:</b> [cabfpub] Possible new BR on Financial Responsibility -- minimum capital requirements<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span lang=EN-US>In our Forum call last week I raised the issue of possible new Financial Responsibility requirements for CAs as a substitute for the existing EV insurance requirements (which most people have concluded do not really help the Forum reach any meaningful goals that relate to SSL and internet security).<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>I mentioned two ideas of my own for new financial responsibility requirements, and asked those on the call for their preliminary reactions, plus any ideas they might have for other financial responsibility ideas. Ben Wilson had some feedback, but no one else spoke on the call so I promised to post the two ideas to the Public list for further discussion. If there is support, we can move later to a pre-ballot with specifics.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>I will post each idea separately so we can have separate discussions.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><b><u><span lang=EN-US>First Idea – Minimum Capital Requirements<o:p></o:p></span></u></b></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>The first idea is to establish new CA financial responsibility requirements in the Baseline Requirements for some sort of minimum capital requirements. Here are my two main reasons for seeking minimum capital requirements:<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt'><span lang=EN-US>1. It would help a CA respond to a serious security breach or emergency infrastructure problem – ready cash and net capital is always important to deal quickly with a serious problem.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:36.0pt'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt'><span lang=EN-US>2. If the CA decides to exit the certificate business, it could help the CA continue the required revocation checking services (CRLs, OCSP responses), archives, etc.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:36.0pt'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>In my mind, any minimum capital requirement we come up with should satisfy at least three goals:<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoListParagraphCxSpFirst style='margin-bottom:0cm;margin-bottom:.0001pt;mso-add-space:auto;text-indent:-18.0pt;line-height:normal;mso-list:l1 level1 lfo2'><![if !supportLists]><span lang=EN-US style='font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US>It should be reasonable and not punitive or prohibitive for small or new CAs,<o:p></o:p></span></p><p class=MsoListParagraphCxSpMiddle style='margin-bottom:0cm;margin-bottom:.0001pt;mso-add-space:auto;text-indent:-18.0pt;line-height:normal;mso-list:l1 level1 lfo2'><![if !supportLists]><span lang=EN-US style='font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US>It should scale according to the level of activity for a CA, and<o:p></o:p></span></p><p class=MsoListParagraphCxSpLast style='margin-bottom:0cm;margin-bottom:.0001pt;mso-add-space:auto;text-indent:-18.0pt;line-height:normal;mso-list:l1 level1 lfo2'><![if !supportLists]><span lang=EN-US style='font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span lang=EN-US>It should use existing financial terms and measurements if possible so no CA or auditor has to do extra or complicated calculations to see whether or not the CA is in compliance.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>I believe the minimum capital requirements should look at three elements: (1) total liquid assets (cash and cash-like assets), (2) the CA’s so-called “quick ratio”, which is a measurement of how much cash and cash-like assets the CA has compared to its short term liabilities (so the quick ratio is a measure of how easily the CA can access its cash to deal with an emergency without being unable to pay current debts), and (3) net retained earnings (owner’s equity), which is a measurement of how much capital a CA has after all its short and long term liabilities are subtracted from all its assets. These are common financial accounting concepts.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>The CA/Browser Forum already uses these same capital tests in a different context, and we can recycle existing language if we choose. As you know, EVGL 8.4 currently requires two kinds of insurance, but allows larger CAs not to carry insurance if they meet the following minimum capital tests:<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><i><u><span lang=EN-US>Current EVGL 8.4</span></u></i><span lang=EN-US> *** A CA MAY self-insure for liabilities that arise from such party's performance and obligations under these Guidelines provided that:<o:p></o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:72.0pt;text-autospace:none'><span lang=EN-US>[1] It has at least five hundred million US dollars in <u>liquid assets</u> based on audited financial statements in the past twelve months, and <o:p></o:p></span></p><p class=MsoNormal style='margin-left:72.0pt;text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:72.0pt;text-autospace:none'><span lang=EN-US>[2] It has a <u>quick ratio</u> (ratio of liquid assets to current liabilities) <u>of not less than 1.0</u>.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:72.0pt;text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>So here is a possible new Financial Responsibility Baseline Requirement we can consider (we need to decide what amounts to put in the blanks below):<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><b><span lang=EN-US>[<i>New</i>] Baseline Requirements Section X.X – Financial Responsibility<o:p></o:p></span></b></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US>A CA must meet the following minimum financial responsibility tests:<o:p></o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US>(a) Liquid Assets (i.e., cash plus <span style='color:#111111;background:white'>assets that can be converted into cash quickly and with minimal impact to the price received) </span>equal to or exceeding <u>$X</u> per certificate for the number of issued certificates outstanding , but not less than <u>$Y</u>; <o:p></o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US>(b) A quick ratio (ratio of liquid assets to current liabilities) of not less than <u>x.x</u>; and<o:p></o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US>(c) Retained Earnings (Owner’s Equity) of <u>$A</u> per certificate for the number of issued certificates outstanding during the CA’s previous annual audit period, but not less than <u>$B</u>. <o:p></o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US>These tests will be confirmed by the CAs WebTrust or ETSI auditor [Alternative 1: as of the last day of each calendar month during the audit period] <or> [Alternative 2: as of the last day of each calendar quarter during the audit year] <or>[Alternative 3: as of the last day of the audit year]. The auditor shall rely on the CA’s audited financial statements if available; otherwise the auditor may rely on the CA’s unaudited financial statements that are verified in writing as accurate by the CA’s CEO or equivalent officer. This requirement shall not apply to government CAs.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:36.0pt;text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>If we like this structure for a new Financial Responsibility BR, the question will be – what numbers should we use for X, Y, Z, A, and B above?<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>I have asked WebTrust auditor Don Sheehy to think about this issue, and each CA should consult its own financial department for comments and input.<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>Any preliminary reaction?<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>I will post my second idea in a separate email.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><b><i><span lang=EN-US style='font-size:14.0pt;font-family:"Bradley Hand ITC";color:#0F243E'>Kirk R. Hall<o:p></o:p></span></i></b></p><p class=MsoNormal><span lang=EN-US>Operations Director, Trust Services<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>Trend Micro<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>+1.503.753.3088<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><table class=MsoNormalTable border=0 cellpadding=0><tr><td style='background:white;padding:.75pt .75pt .75pt .75pt'><table class=MsoNormalTable border=0 cellpadding=0><tr><td style='padding:.75pt .75pt .75pt .75pt'><pre><o:p> </o:p></pre><pre>TREND MICRO EMAIL NOTICE<o:p></o:p></pre><pre>The information contained in this email and any attachments is confidential <o:p></o:p></pre><pre>and may be subject to copyright or other intellectual property protection. <o:p></o:p></pre><pre>If you are not the intended recipient, you are not authorized to use or <o:p></o:p></pre><pre>disclose this information, and we request that you notify us by reply mail or<o:p></o:p></pre><pre>telephone and delete the original message from your mail system.<o:p></o:p></pre></td></tr></table></td></tr></table><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p></div></body></html>