SEC Proposes Rule Amendments and a New Rule Addressing the Bank Exemptions to Dealer Registration under the Gramm-Leach-Bliley Act.

Mondaq Business Briefing, November, 2002

The SEC proposed two rule amendments and a new rule (collectively, the "Dealer Rules") under the Securities Exchange Act of 1934 ("Exchange Act") that address bank exemptions to "dealer" registration under the Gramm-Leach-Bliley Act of 1999 (the "GLBA"). Effective May 12, 2001, the blanket exemption for the definition from "broker" and "dealer" for a "bank" was eliminated and statutory "functional" exemptions from the broker-dealer registration requirements were to take effect. (See the December 12, 2000 issue of the Alert for a description of the GLBA's 11 "broker" and 4 "dealer" exemptions from the broker-dealer registration requirements). Just prior to this effective date, on May 11, 2001, the SEC adopted interim final rules (the "Interim Rules") to address questions raised...