SEC Extends Time for Banks to Comply with Gramm-Leach-Bliley Act Broker Registration Requirements
The SEC extended the compliance deadline for banks to meet GLBA broker registration requirements until September 30, 2005, to allow time for system implementation and finalization of Regulation B, with no fraud, fines, or penalties involved.
The Securities and Exchange Commission extended the compliance deadline for banks to register as brokers under the Gramm-Leach-Bliley Act (GLBA) from March 31, 2005, to September 30, 2005. This extension was granted to accommodate industry challenges in implementing new systems to comply with the GLBA’s narrower functional exceptions, which replaced a prior blanket exemption from broker-dealer registration effective in 2001. The SEC is still reviewing public comments on its proposed Regulation B, which aims to replace interim rules, and will not enforce the new requirements until after finalizing the regulation—no enforcement actions or penalties were issued.
The Securities and Exchange Commission announced on March 8, 2005, a further extension of the compliance deadline for banks to meet broker registration requirements under the Gramm-Leach-Bliley Act (GLBA), pushing the date from March 31, 2005, to September 30, 2005. The GLBA, enacted in 1999, repealed a longstanding exemption that allowed banks to engage in securities activities without registering as brokers, replacing it with more narrowly defined functional exceptions that were originally set to take effect on May 12, 2001. To ease the transition, the SEC issued interim rules in 2001 and granted multiple extensions, most recently delaying enforcement until March 2005. This latest extension was made to provide banks additional time to develop compliance systems and to allow the SEC to fully consider public comments on its proposed Regulation B, which aims to replace the interim rules. The SEC emphasized that it does not expect banks to implement compliance systems until Regulation B is finalized and the rules are amended. No allegations of fraud, enforcement actions, fines, or penalties were associated with this notice—it was purely a procedural delay to ensure orderly and effective regulatory implementation. The order and notice were made publicly available on the SEC’s website for transparency.
Extracted insights
- agency Securities and Exchange Commission
- Securities And Exchange Commission issued order extending compliance dates until Sept. 30, 2005
- Gramm-Leach-Bliley Act repealed exception from broker-dealer registration requirements
- Gramm-Leach-Bliley Act replaced exception with new functional exceptions effective May 12, 2001
- Securities And Exchange Commission adopted interim final rules on May 11, 2001
- Securities And Exchange Commission delayed effective date of bank 'broker' rules to March 31, 2005
- Securities And Exchange Commission proposed Regulation B in June 2004
- Securities And Exchange Commission extended exemption from definition of 'broker' until Sept. 30, 2005
SEC EXTENDS TIME FOR BANKS TO COMPLY WITH GRAMM-LEACH-BLILEY ACT BROKER REGISTRATION REQUIREMENTS FOR IMMEDIATE RELEASE 2005-31 Washington, D.C., March 8, 2005 - The Securities and Exchange Commission announced today that it issued an order further extending until Sept. 30, 2005, the compliance dates for banks with respect to certain broker registration requirements contained in the Gramm-Leach-Bliley Act (GLBA). 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 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. To further accommodate the banking industry's continuing compliance concerns, the Commission delayed the effective date of the bank "broker" rules through a series of orders that ultimately extended the temporary exemption from the definition of "broker" to March 31, 2005. In June 2004, the Commission proposed to revise and replace the Interim Rules with Regulation B. Today, the Commission extended the exemption from the definition of "broker" until Sept. 30, 2005, pending its consideration of comments received on the Regulation B proposal. This will give the Commission 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. The text of the order and notice will be available on the Commission's website at http://www.sec.gov/rules/exorders/34-51328.htm. http://www.sec.gov/news/press/2005-31.htm Home | Previous Page Modified: 03/08/2005
SEC EXTENDS TIME FOR BANKS TO COMPLY WITH GRAMM-LEACH-BLILEY ACT BROKER REGISTRATION REQUIREMENTS FOR IMMEDIATE RELEASE 2005-31 Washington, D.C., March 8, 2005 - The Securities and Exchange Commission announced today that it issued an order further extending until Sept. 30, 2005, the compliance dates for banks with respect to certain broker registration requirements contained in the Gramm-Leach-Bliley Act (GLBA). 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 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. To further accommodate the banking industry's continuing compliance concerns, the Commission delayed the effective date of the bank "broker" rules through a series of orders that ultimately extended the temporary exemption from the definition of "broker" to March 31, 2005. In June 2004, the Commission proposed to revise and replace the Interim Rules with Regulation B. Today, the Commission extended the exemption from the definition of "broker" until Sept. 30, 2005, pending its consideration of comments received on the Regulation B proposal. This will give the Commission 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. The text of the order and notice will be available on the Commission's website at http://www.sec.gov/rules/exorders/34-51328.htm. http://www.sec.gov/news/press/2005-31.htm Home | Previous Page Modified: 03/08/2005