SEC Extends Date For GLBA Broker- Dealer Registration Requirements
The SEC issued a statement extending the date by which banks must comply with the broker- dealer registration requirements of the Gramm- Leach- Bliley Act of 1999 (the "GLBA"). For a full discussion of the broker- dealer registration requirements, please see the December 12, 2000 issue of the Alert. The SEC stated that it was extending the May 12, 2001 deadline provided for in the GLBA because banks may need more time "to complete the process of ensuring that their securities activities either fall within the new exceptions to the definitions of broker and dealer or are conducted by registered broker- dealers." The SEC also stated that: (1) it will issue a proposed rule concerning these exceptions; (2) it will exempt banks from the definitions of broker and dealer until October 1, 2001 for their existing securities activities; and (3) until January 1, 2002, the compensation received by banks and paid by banks to
