Interim Rule Listing Financial Activities That Will Be Permissible For Financial Holding Companies - Brief Article

Federal Reserve Bulletin, May, 2000

The Federal Reserve Board on March 10, 2000, approved an interim rule, effective March 11, 2000, listing financial activities permissible for financial holding companies under the Gramm-Leach-Bliley Act.

The list will also help identify companies subject to the provisions of the act governing the privacy of customer information. The privacy provisions apply to a company doing a financial business regardless of whether the company is affiliated with a bank.

The interim rule, which amends Regulation Y (Bank Holding Companies and Change in Bank Control), establishes procedures for financial holding companies to engage in the listed financial activities. It also establishes procedures by which a party may ask the Board to list additional activities as financial in nature or as incidental to, or complementary to, a financial activity.

Comments are requested on the interim rule by May 12, 2000. The Board will revise it as appropriate after reviewing the comments.