GLBa Assessment
Gramm-Leach-Bliley Compliance arrow Security Guides Library
Thursday, 29 March 2007


Summary of Provisions

  • Amends the Federal securities laws to incorporate functional regulation of bank securities activities.

  • The broad exemptions banks have from broker-dealer regulation would be replaced by more limited exemptions designed to permit banks to continue their current activities and to develop new products.

  • Provides for limited exemptions from broker-dealer registration for transactions in the following areas: trust, safekeeping, custodian, shareholder and employee benefit plans, sweep accounts, private placements (under certain conditions), and third party networking arrangements to offer brokerage services to bank customers, among others.

  • Allows banks to continue to be active participants in the derivatives business for all credit and equity swaps (other than equity swaps to retail customers).

  • Provides for a "jump ball" rulemaking and resolution process between the SEC and the Federal Reserve regarding new hybrid products.

  • Amends the Investment Company Act to address potential conflicts of interest in the mutual fund business and amendments to the Investment Advisers Act to require banks that advise mutual funds to register as investment advisers.
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