SEC Extends Time for Banks to Comply with Gramm-Leach-Bliley Act Broker Registration Requirements
The SEC extended the compliance deadline for banks to register as brokers under the Gramm-Leach-Bliley Act until September 30, 2006, to allow time for system implementation and finalization of Regulation B, with no fraud, fines, or enforcement actions involved.
The SEC extended the compliance deadline for banks to meet broker registration requirements under the Gramm-Leach-Bliley Act (GLBA) until September 30, 2006, to accommodate industry transition challenges. The GLBA repealed a prior exemption that allowed banks to engage in securities activities without registering as brokers, replacing it with narrower functional exceptions effective since May 2001. The SEC had issued interim rules in 2001 and proposed Regulation B in June 2004 to replace them; this latest extension provides time to review public comments and finalize the rule without imposing penalties or enforcement actions.
The SEC announced on September 9, 2005, a further extension of the compliance deadline for banks to register as brokers under the Gramm-Leach-Bliley Act (GLBA), pushing the date to September 30, 2006. The GLBA, enacted to modernize financial services regulation, repealed a longstanding exemption that permitted banks to conduct securities activities without registering as brokers, replacing it with narrower functional exceptions effective May 12, 2001. To ease the transition, the SEC issued interim rules in 2001 and subsequently granted multiple extensions, including this latest one, to allow banks time to develop compliance systems. In June 2004, the SEC proposed Regulation B to replace the interim rules, and this extension provides additional time to review public comments and finalize any necessary amendments. The SEC emphasized that it does not expect banks to implement compliance systems until Regulation B is finalized and the rules are amended. No fraud, enforcement actions, fines, or penalties were associated with this announcement—it was purely a procedural delay to ensure orderly and effective regulatory implementation. The agency reiterated its commitment to supporting industry compliance while maintaining regulatory integrity.
Extracted insights
- agency Securities and Exchange Commission
- SEC extended compliance dates for banks until Sept. 30, 2006
- SEC issued order extending broker registration requirements compliance deadline
- Gramm-Leach-Bliley Act repealed exception from broker-dealer registration requirements in Securities Exchange Act of 1934
- SEC adopted interim final rules on May 11, 2001
- SEC proposed Regulation B in June 2004
- Banks required to comply broker registration requirements by Sept. 30, 2006
- Gramm-Leach-Bliley Act replaced bank exception with new functional exceptions effective May 12, 2001
- SEC delayed effective date of bank broker rules through series of orders
SEC Extends Time for Banks to Comply with Gramm-Leach-Bliley Act Broker Registration Requirements FOR IMMEDIATE RELEASE 2005-130 Washington, D.C., Sept. 9, 2005 -- The Securities and Exchange Commission announced today that it issued an order further extending until Sept. 30, 2006, 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 Sept. 30, 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, 2006. 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 Web site at http://www.sec.gov. http://www.sec.gov/news/press/2005-130.htm Home | Previous Page Modified: 09/09/2005
SEC Extends Time for Banks to Comply with Gramm-Leach-Bliley Act Broker Registration Requirements FOR IMMEDIATE RELEASE 2005-130 Washington, D.C., Sept. 9, 2005 -- The Securities and Exchange Commission announced today that it issued an order further extending until Sept. 30, 2006, 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 Sept. 30, 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, 2006. 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 Web site at http://www.sec.gov. http://www.sec.gov/news/press/2005-130.htm Home | Previous Page Modified: 09/09/2005