Circular
Agencies Adopt Final Rules to Implement the Bank “Broker” Provisions of the Gramm-Leach-Bliley Act
September 25, 2007
Circular No. 11899

The Securities and Exchange Commission (SEC) and Board of Governors of the Federal Reserve System (Board) have announced the adoption of final joint rules to implement the “broker” exceptions for banks under Section 3(a)(4) of the Securities Exchange Act of 1934.  These exceptions were adopted as part of the Gramm-Leach-Bliley Act of 1999.  The SEC and the Board approved the final rules at separate open meetings held on September 19, 2007, and September 24, 2007, respectively. 

The rules are designed to accommodate the business practices of banks and to protect investors.  In developing these rules, the agencies consulted extensively with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Office of Thrift Supervision.  Banks do not have to start complying with the rules until the first day of their fiscal year commencing after September 30, 2008. 

See the press release for full details.

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