SEC Further Extends Blanket Exemption for Banks and Thrifts from Broker Registration Requirement in the GLBA.

Mondaq Business Briefing, April, 2003

The SEC extended the temporary blanket exemption of banks, savings associations and savings banks from the "broker" registration requirements under the Gramm-Leach-Bliley Act of 1999 (the "GLBA") until November 12, 2004. Effective May 12, 2001, the blanket exemption in the Securities Exchange Act of 1934 ("Exchange Act") from the definitions of "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 requirement). Just prior to this effective date on May 11, 2001, the SEC adopted interim final rules (the "Interim Rules") to...