Developments of Note
FRB Proposes Finder’s Activities as Permissible for Financial Holding Companies
The FRB proposed adding "acting as a finder" to the list of activities that are financial in nature or incidental to financial activities and that are permissible for financial holding companies ("FHCs"). Under the proposed rule (the "Proposed Rule", Docket No. R-1078), an FHC could assist in bringing together third parties who may negotiate and complete a transaction, or it could simply serve as a conduit for transaction-related information, such as conveying information about products, bids, offers or expressions of interest, from one party to another. The Proposed Rule clarifies that bank holding companies that are not FHCs may not act as a finder.
