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President Clinton signed the Gramm-Leach-Bliley Act (“Act”) into law November 12, 1999. The Act repeals the 66-year old Glass-Steagall Act, which prohibited banks, securities firms and insurance companies from affiliating. The following is a brief summary of the key provisions of interest to the securities industry. Affiliation: The Act...
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The Act limits the authority of the Board to regulate, examine, and require reports from functionally regulated subsidiaries, including registered broker-dealers, of FHCs. The Act establishes a streamlined supervisory system for regulating holding companies, notably: The Board generally is prohibited from imposing capital requirements on functionally regulated holding company...
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