SEC Issues Statement on Compliance Date for the Bank
Exceptions to Broker-Dealer Registration in the Gramm-Leach-Bliley Act
The SEC stated that it will extend the compliance date for the bank exception to the broker-dealer registration requirements under the Gramm-Leach-Bliley Act (the "GLBA") beyond the scheduled May 12, 2002 implementation date. (See the December 12, 2000 issue of the Alert for a description of the SEC’s proposal regarding the GLBA’s "push out" provisions.) While the SEC did not provide a new compliance date, it stated that it "has received a number of inquiries from banks regarding their compliance responsibilities . . . [and the SEC] expects to extend the compliance period, as appropriate, so that banks will have sufficient time to implement the changes necessary to comply with the rule as amended." The SEC also noted that it does not expect banks to develop compliance systems until after the adoption of final amendments to rules under the GLBA. Finally, the SEC
