The Brouhaha Over Trust, B-D Rules: Banks have faced uncertainty on a number of trust and broker-dealer questions since GLB in 1999. Now, a proposed provision would force the SEC to work with the industry to draft rules.(rules for banking industry)

Publication: US Banker

Publication Date: 01-JUL-06

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Banks are holding their breath for passage of a provision, now part of the regulatory-relief legislation winding its way though Congress, which would eject them from the legal limbo they've been immersed in since the Gramm-Leach-Bliley Act was passed in 1999. That law identified 15 activities considered "traditional" in the banking industry, but the Securities and Exchange Commission's proposed rules on them via Regulation B have been rejected as too strict by the banking industry.

But the proposed provision takes a different tack, and would require the SEC to work directly with banking regulators to draft "reasonable" bank rules for the 15 activities, which include trust, compliance, broker-dealer and mutual-fund-sweep activities, as well as dual...

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