SEC Announces Deferral in Implementation of Gramm-Leach-Bliley Act Broker/Dealer Provisions

Apr 18, 2001, 01:00 ET from Bank Securities Association

    WAYNE, Pa., April 18 /PRNewswire/ -- The Bank Securities Association
 ("BSA") today announced that it was pleased that the U.S. Securities and
 Exchange Commission intends to defer the implementation of the broker-dealer
 registration provisions in the Gramm-Leach-Bliley Act (the "GLB Act") until
 October 1, 2001 for existing activities.  These registration provisions, which
 were to become effective on May 12th, eliminate the general bank exemption
 from broker-dealer registration requirements and replace it with several
 limited exemptions for certain traditional bank securities activities.  There
 has been much confusion and debate regarding the scope and coverage of many of
 these exemptions.
     In a letter earlier this mouth to Acting Chairman Laura Unger, the BSA
 urged the Commission to issue just such a broad-based deferral of
 implementation of the GLB Act's broker-dealer provisions in order to allow the
 SEC sufficient time to issue definitive guidance based upon meaningful input
 from the bank securities industry and also to permit banks the necessary time,
 once such guidance is issued, to register as broker-dealers, register, test
 and train their personnel and appropriately re-design their supervisory and
 other systems.
     According to BSA General Counsel, Robert M. Kurucza, "Although the BSA is
 pleased that it appears the SEC will allow banks additional time to comply,
 the window between the time that the SEC issues definitive interpretive
 guidance and October 1st may ultimately prove too short."  He noted further
 that, "In any event, the SEC's statement clearly signals that the SEC has
 heard us and is willing to work with the banking industry to fashion
 appropriate rules.  This is welcomed."  Mr. Kurucza noted finally that he
 believes that "a continued dialogue between the SEC staff and the BSA will be
 critical as the staff works hard toward achieving an implementation of Title
 II that is both fair and workable and also consistent with the intent of
 Congress."
     The BSA is the nation's leading membership-based not-for-profit trade
 association dedicated exclusively to serving the needs of commercial banks,
 trust companies, savings institutions, and credit unions in connection with
 the offering of securities, investment and insurance products and services.
 The membership includes financial institutions of all sizes, their
 broker/dealer and mutual fund subsidiaries, and firms providing products
 and/or services to support these operations.
 
 

SOURCE Bank Securities Association
    WAYNE, Pa., April 18 /PRNewswire/ -- The Bank Securities Association
 ("BSA") today announced that it was pleased that the U.S. Securities and
 Exchange Commission intends to defer the implementation of the broker-dealer
 registration provisions in the Gramm-Leach-Bliley Act (the "GLB Act") until
 October 1, 2001 for existing activities.  These registration provisions, which
 were to become effective on May 12th, eliminate the general bank exemption
 from broker-dealer registration requirements and replace it with several
 limited exemptions for certain traditional bank securities activities.  There
 has been much confusion and debate regarding the scope and coverage of many of
 these exemptions.
     In a letter earlier this mouth to Acting Chairman Laura Unger, the BSA
 urged the Commission to issue just such a broad-based deferral of
 implementation of the GLB Act's broker-dealer provisions in order to allow the
 SEC sufficient time to issue definitive guidance based upon meaningful input
 from the bank securities industry and also to permit banks the necessary time,
 once such guidance is issued, to register as broker-dealers, register, test
 and train their personnel and appropriately re-design their supervisory and
 other systems.
     According to BSA General Counsel, Robert M. Kurucza, "Although the BSA is
 pleased that it appears the SEC will allow banks additional time to comply,
 the window between the time that the SEC issues definitive interpretive
 guidance and October 1st may ultimately prove too short."  He noted further
 that, "In any event, the SEC's statement clearly signals that the SEC has
 heard us and is willing to work with the banking industry to fashion
 appropriate rules.  This is welcomed."  Mr. Kurucza noted finally that he
 believes that "a continued dialogue between the SEC staff and the BSA will be
 critical as the staff works hard toward achieving an implementation of Title
 II that is both fair and workable and also consistent with the intent of
 Congress."
     The BSA is the nation's leading membership-based not-for-profit trade
 association dedicated exclusively to serving the needs of commercial banks,
 trust companies, savings institutions, and credit unions in connection with
 the offering of securities, investment and insurance products and services.
 The membership includes financial institutions of all sizes, their
 broker/dealer and mutual fund subsidiaries, and firms providing products
 and/or services to support these operations.
 
 SOURCE  Bank Securities Association