INTERIM RULE ON DEFINITION OF FINANCIAL ACTIVITIES UNDER BANK HOLDING COMPANY ACT.The Federal Reserve Board on December December: see month. 21, 2000, approved an interim rule defining three categories of activities listed in section 4(k)(5) of the Bank Holding Company Act as financial in nature or incidental Contingent upon or pertaining to something that is more important; that which is necessary, appertaining to, or depending upon another known as the principal. Under Workers' Compensation statutes, a risk is deemed incidental to employment when it is related to whatever a to a financial activity. The interim rule also establishes a mechanism through which financial holding companies or other interested parties may request that the Board find, by order, that particular specific activities fall within one of the three categories. The categories in section 4(k)(5), added to the Bank Holding Company Act by the Gramm--Leach--Bliley Act, are the following: * Lending, exchanging, transferring, investing for others, or safeguarding financial assets Financial assets Claims on real assets. other than money or securities * Providing any device or other instrumentality Instrumentality Notes issued by a federal agency whose obligations are guaranteed by the full-faith-and-credit of the government, even though the agency's responsibilities are not necessarily those of the US government. for transferring money or other financial assets * Arranging, effecting, or facilitating financial transactions for the account of third parties. The Board is soliciting comment on the mechanism set out in the interim rule for requesting a Board finding and on what activities, if any, should be found by rule to fall within one of the three categories. The Board plans to issue a joint notice with the Secretary of the Treasury, who is promulgating a similar interim rule implementing section 5136A(b)(3) of the Revised Statutes A body of statutes that have been revised, collected, arranged in order, and reenacted as a whole. The legal title of the collection of compiled laws of the United States, as well as some of the individual states. , which parallels section 4(k)(5). The interim rule will become effective on January January: see month. 2, 2001, and will be published in the Federal Register. |
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