FOR IMMEDIATE RELEASE
ICBA Concerned About Regulatory Burden of Proposed SEC Bank Broker Exceptions
Washington, D.C. (June 4, 2004) - The Independent Community Bankers of America (ICBA) expressed its concerns today about the complexity of the proposed SEC rules on bank broker exemptions and whether community banks will have the resources to comply with them. The proposed rules that will be known as Regulation B implement the bank broker provisions of the Gramm-Leach-Bliley Act and define the exceptions to the definition of "broker" that are provided under that law.
"The ICBA is pleased that the SEC has modified its original 2001 proposal to take account of community bank issues-particularly with respect to the definition of a 'nominal' fee under the network exception and raising the small bank threshold to $500 million under the custody exception," said Camden R. Fine, ICBA president and chief executive officer. "However, ICBA remains concerned about the overall complexity of the proposed rules. The regulatory burden imposed on community banks is already significant. These rules will add to that burden as community banks expend financial and staff resources to develop programs to ensure compliance with the complex exceptions under the regulations."
ICBA will comment to the SEC on the proposed regulations once they are published and the association has had a chance to discuss them with its members.