FEDERAL RESERVE SYSTEM 12 CFR Part 225 [Regulation Y; Docket No. R-1010] Bank Holding Companies and Change in Bank Control; Clarification to the Board's Section 20 Orders AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final Conditions to Board Orders. SUMMARY: The Board is clarifying one of the operating standards established in its decisions under the Bank Holding Company Act and section 20 of the Glass-Steagall Act permitting a nonbank subsidiary of a bank holding company to underwrite and deal in securities. The Board is modifying the customer disclosure operating standard to make clear that a section 20 subsidiary operating off bank premises may satisfy the standard by providing a one-time disclosure in writing when an investment account is opened. EFFECTIVE DATE: The clarification is effective March 27, 1998. FOR FURTHER INFORMATION CONTACT: Thomas Corsi, Senior Counsel (202) 452-3275, Legal Division; Michael J. Schoenfeld, Senior Supervisory Financial Analyst (202) 452-2781, Division of Banking Supervision and Regulation; for the hearing impaired only, Telecommunications Device for the Deaf (TDD), Diane Jenkins (202) 452-3544.
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Summary and final conditions (20 KB PDF)
1998 Banking and consumer regulatory policy