GRAMM–LEACH–BLILEY ACT - GPO

1 PUBLIC LAW 106 102 NOV. 12, 1999 gramm leach bliley ACTVerDate 11-MAY-2000 15:09 Aug 30, 2000 Jkt 079139 PO 00102 Frm 00001 Fmt 6579 Sfmt 6579 E:\PUBLAW\ apps13 PsN: PUBL102113 STAT. 1338 PUBLIC LAW 106 102 NOV. 12, 1999 Public Law 106 102106th CongressAn ActTo enhance competition in the financial services industry by providing a prudentialframework for the affiliation of banks, securities firms, insurance companies,and other financial service providers, and for other it enacted by the Senate and House of Representatives ofthe United States of America in Congress assembled,SECTION 1. SHORT TITLE; TABLE OF CONTENTS.(a) SHORTTITLE. This Act may be cited as the gramm - leach - bliley Act .(b) TABLE OFCONTENTS. The table of contents for this Actis as follows:Sec. 1. Short title; table of I FACILITATING AFFILIATION AMONG BANKS, SECURITIES FIRMS,AND INSURANCE COMPANIESS ubtitle A AffiliationsSec.

2 101. Glass-Steagall Act 102. Activity restrictions applicable to bank holding companies that are not fi-nancial holding 103. financial 104. Operation of State 105. Mutual bank holding companies 106. Prohibition on deposit production 107. Cross marketing restriction; limited purpose bank relief; 108. Use of subordinated debt to protect financial system and deposit fundsfrom too big to fail 109. Study of financial modernization s effect on the accessibility of small busi-ness and farm B Streamlining Supervision of Bank Holding CompaniesSec. 111. Streamlining bank holding company 112. Authority of State insurance regulator and Securities and Exchange 113. Role of the Board of Governors of the Federal Reserve 114. Prudential 115. Examination of investment 116. Elimination of application requirement for financial holding 117. Preserving the integrity of FDIC 118.

3 Repeal of savings bank provisions in the Bank Holding Company Act 119. Technical C Subsidiaries of National BanksSec. 121. Subsidiaries of national 122. Consideration of merchant banking activities by financial D Preservation of FTC AuthoritySec. 131. Amendment to the Bank Holding Company Act of 1956 to modify notifica-tion and post-approval waiting period for section 3 132. Interagency data USC 12, 1999[S. 900]VerDate 11-MAY-2000 15:09 Aug 30, 2000 Jkt 079139 PO 00102 Frm 00002 Fmt 6580 Sfmt 6582 E:\PUBLAW\ apps13 PsN: PUBL102113 STAT. 1339 PUBLIC LAW 106 102 NOV. 12, 1999 Sec. 133. Clarification of status of subsidiaries and E National TreatmentSec. 141. Foreign banks that are financial holding 142. Representative F Direct Activities of BanksSec. 151. Authority of national banks to underwrite certain municipal G Effective DateSec. 161. Effective II FUNCTIONAL REGULATIONS ubtitle A Brokers and DealersSec.

4 201. Definition of 202. Definition of 203. Registration for sales of private securities 204. Information 205. Treatment of new hybrid 206. Definition of identified banking 207. Additional 208. Government securities 209. Effective 210. Rule of B Bank Investment Company ActivitiesSec. 211. Custody of investment company assets by affiliated 212. Lending to an affiliated investment 213. Independent 214. Additional SEC disclosure 215. Definition of broker under the Investment Company Act of 216. Definition of dealer under the Investment Company Act of 217. Removal of the exclusion from the definition of investment adviser forbanks that advise investment 218. Definition of broker under the Investment Advisers Act of 219. Definition of dealer under the Investment Advisers Act of 220. Interagency 221. Treatment of bank common trust 222. Statutory disqualification for bank 223.

5 Conforming change in 224. Conforming 225. Effective C Securities and Exchange Commission Supervision of Investment BankHolding CompaniesSec. 231. Supervision of investment bank holding companies by the Securities andExchange D Banks and Bank Holding CompaniesSec. 241. III INSURANCES ubtitle A State Regulation of InsuranceSec. 301. Functional regulation of 302. Insurance underwriting in national 303. Title insurance activities of national banks and their 304. Expedited and equalized dispute resolution for Federal 305. Insurance customer 306. Certain State affiliation laws preempted for insurance companies and 307. Interagency 308. Definition of B Redomestication of Mutual InsurersSec. 311. General 312. Redomestication of mutual 313. Effect on State laws restricting 314. Other 11-MAY-2000 15:09 Aug 30, 2000 Jkt 079139 PO 00102 Frm 00003 Fmt 6580 Sfmt 6582 E:\PUBLAW\ apps13 PsN: PUBL102113 STAT.

6 1340 PUBLIC LAW 106 102 NOV. 12, 1999 Sec. 315. 316. Effective C National Association of Registered Agents and BrokersSec. 321. State flexibility in multistate licensing 322. National Association of Registered Agents and 323. 324. Relationship to the Federal 325. 326. Board of 327. 328. Bylaws, rules, and disciplinary 329. 330. Functions of the 331. Liability of the association and the directors, officers, and employees ofthe 332. Elimination of NAIC 333. Relationship to State 334. Coordination with other 335. Judicial 336. D Rental Car Agency Insurance ActivitiesSec. 341. Standard of regulation for motor vehicle IV UNITARY SAVINGS AND LOAN HOLDING COMPANIESSec. 401. Prevention of creation of new S&L holding companies with commercial V PRIVACYS ubtitle A Disclosure of Nonpublic Personal InformationSec. 501. Protection of nonpublic personal 502. Obligations with respect to disclosures of personal 503.

7 Disclosure of institution privacy 504. 505. 506. Protection of Fair Credit Reporting 507. Relation to State 508. Study of information sharing among financial 509. 510. Effective B Fraudulent Access to financial InformationSec. 521. Privacy protection for customer information of financial 522. Administrative 523. Criminal 524. Relation to State 525. Agency 526. 527. VI FEDERAL HOME LOAN BANK SYSTEM MODERNIZATIONSec. 601. Short 602. 603. Savings association 604. Advances to members; 605. Eligibility 606. Management of 607. Resolution Funding 608. Capital structure of Federal home loan VII OTHER PROVISIONSS ubtitle A ATM Fee ReformSec. 701. Short 702. Electronic fund transfer fee disclosures at any host 703. Disclosure of possible fees to consumers when ATM card is 704. Feasibility 705. No liability if posted notices are 11-MAY-2000 15:09 Aug 30, 2000 Jkt 079139 PO 00102 Frm 00004 Fmt 6580 Sfmt 6582 E:\PUBLAW\ apps13 PsN: PUBL102113 STAT.

8 1341 PUBLIC LAW 106 102 NOV. 12, 1999 Subtitle B Community ReinvestmentSec. 711. CRA sunshine 712. Small bank regulatory 713. Federal Reserve Board study of CRA 714. Preserving the Community Reinvestment Act of 715. Responsiveness to community needs for financial C Other Regulatory ImprovementsSec. 721. Expanded small bank access to S corporation 722. Plain language requirement for Federal banking agency 723. Retention of Federal in name of converted Federal savings 724. Control of bankers 725. Provision of technical assistance to 726. Federal Reserve 727. Authorization to release 728. General Accounting Office study of conflicts of 729. Study and report on adapting existing legislative requirements to onlinebanking and 730. Clarification of source of strength 731. Interest rates and other charges at interstate 732. Interstate branches and agencies of foreign 733.

9 Fair treatment of women by financial 734. Membership of loan guarantee 735. Repeal of stock loan limit in Federal Reserve 736. Elimination of SAIF and DIF special 737. Bank officers and directors as officers and directors of public 738. Approval for purchases of 739. Optional conversion of Federal savings 740. Grand jury I FACILITATING AFFILIATIONAMONG BANKS, SECURITIES FIRMS,AND INSURANCE COMPANIESS ubtitle A AffiliationsSEC. 101. GLASS-STEAGALL ACT REPEALS.(a) SECTION20 REPEALED. Section 20 of the Banking Actof 1933 (12 377) (commonly referred to as the Glass-SteagallAct ) is repealed.(b) SECTION32 REPEALED. Section 32 of the Banking Actof 1933 (12 78) is 102. ACTIVITY RESTRICTIONS APPLICABLE TO BANK HOLDINGCOMPANIES THAT ARE NOT financial HOLDING COMPA-NIES.(a) INGENERAL. Section 4(c)(8) of the Bank Holding CompanyAct of 1956 (12 1843(c)(8)) is amended to read as follows: (8) shares of any company the activities of which hadbeen determined by the Board by regulation or order underthis paragraph as of the day before the date of the enactmentof the gramm - leach - bliley Act, to be so closely related tobanking as to be a proper incident thereto (subject to suchterms and conditions contained in such regulation or order,unless modified by the Board).

10 (b) CONFORMINGCHANGES TOOTHERSTATUTES. (1) AMENDMENT TO THE BANK HOLDING COMPANY ACTAMENDMENTS OF 1970. Section 105 of the Bank Holding Com-pany Act Amendments of 1970 (12 1850) is amendedby striking , to engage directly or indirectly in a nonbankingactivity pursuant to section 4 of such Act, .VerDate 11-MAY-2000 15:09 Aug 30, 2000 Jkt 079139 PO 00102 Frm 00005 Fmt 6580 Sfmt 6581 E:\PUBLAW\ apps13 PsN: PUBL102113 STAT. 1342 PUBLIC LAW 106 102 NOV. 12, 1999(2) AMENDMENT TO THE BANK SERVICE COMPANY ACT. Section 4(f) of the Bank Service Company Act (12 (f)) is amended by inserting before the period at the endthe following: as of the day before the date of the enactmentof the gramm - leach - bliley Act .SEC. 103. financial ACTIVITIES.(a) INGENERAL. Section 4 of the Bank Holding CompanyAct of 1956 (12 1843) is amended by adding at the endthe following new subsections: (k) ENGAGINGINACTIVITIESTHATAREFINANCIALINNA TURE.