SEC Extends Time For Banks To Comply With Broker-Dealer Registration Requirements In The GLB Act, Indicates That Recently Issued Rules Will Be Amended
The SEC announced that it is extending the compliance date for banks with respect to the broker-dealer registration requirements contained in the Gramm-Leach-Bliley Act of 1999 (the "GLB Act") until May 12, 2002, and indicated that it anticipates that it will amend the rules (the "Rules") addressing the bank exceptions to broker-dealer registration under the GLB Act. The Rules, issued on May 11, 2001 in "interim final" form and originally scheduled to take effect on October 1, 2001, have been subject to strong opposition by the banking industry, including the federal bank regulatory agencies. The FRB, FDIC and OCC, for example, issued a joint comment letter to the SEC in which they expressed "very serious concerns about the validity and content of a number of provisions" in the Rules. (See the May 15, 2001 issue of the Alert for a
