SEC Announces That It Will Delay Implementation Of Elimination Of Banks’ Blanket Exception From Broker- Dealer Registration
In response to concerns expressed by the banking industry, the SEC announced on March 16, 2001 that it would provide relief from the implementation of Title II of the Gramm- Leach- Bliley Act of 1999 (the "GLBA"). Title II of the GLBA removes the blanket exception historically provided to banks from brokerdealer registration under the Securities Exchange Act of 1934 and replaces it with more limited, specific exceptions for activities that are deemed traditional banking activities. Under the GLBA, Title II was scheduled to become fully effective May 12, 2001. The SEC stated that it would "engage in rulemaking within the next few weeks to clarify certain interpretative questions [concerning the broker- dealer exceptions for banks under the GLBA and that the SEC would] provide additional time from the current May 12, 2001 effective date for affected banks to come
