SEC Issues Proposed Bank Broker-Dealer Rules; SEC and Banking Staff Discuss Proposal at Conference Co-Hosted by Goodwin Procter

Mondaq Business Briefing, June, 2004

The SEC issued its long awaited revised regulation to implement the "push-out" exemptions for banks from broker-dealer ("BD") registration provided by the Gramm-Leach-Bliley Act of 1999 ("GLBA"). The regulation, contained in a new proposed Regulation B, includes highly detailed provisions that build on the framework created in the final Interim Regulations (the "Interim Regulations") issued by the SEC in 2001. The Interim Regulations never took effect due to complaints from banks, banking regulators and members of Congress, each of which criticized those regulations as unduly burdensome and inconsistent with the intent of Congress to avoid disrupting traditional banking activities.

Regulation B incorporates the basic framework of the Interim Regulations but, through a...