WEST PALM BEACH, FL (www.hedgeco.net) – The Securities and Exchange Commission has granted an extension to Banks to comply with the Gramm-Leach-Bailey Broker registration requirement. The SEC said it is extending the order until September 30, 2006.  The agency said, “The Commission does not expect banks to develop compliance systems to meet the terms of the “broker” exceptions until the Commission amends its rules. Banks have indicated that they will need time to implement systems to ensure compliance with the new statutory requirements regarding the definition of broker.”

The Gramm-Leach-Bailey Broker registration requirement {GLBA), “repealed an exception from broker-dealer registration requirements in the Securities Exchange Act of 1934 that had allowed banks to engage in securities activities without registering as a broker or dealer.” The Gramm-Leach-Bailey Broker registration requirement {GLBA), “repealed an exception from broker-dealer registration requirements in the Securities Exchange Act of 1934 that had allowed banks to engage in securities activities without registering as a broker or dealer.”

“The GLBA replaced this exception with new functional exceptions that were to become effective May 12, 2001. On May 11, 2001, the Commission adopted interim final rules (Interim Rules) that, among other things, gave banks time to come into full compliance with the more narrowly tailored exceptions from broker-dealer registration.”

Today, the SEC further extended the exemption until Sept. 30, 2006.  Such extension will also grant the SEC additional time to consider fully comments received on Regulation B and to take any final action on the proposal as necessary, including consideration of any modification necessary to the proposed compliance date.

Paul Oranika
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net

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