ICBA - Publications - Reminder About Delay in GLBA Compliance Deadline

Reminder About Delay in GLBA Compliance Deadline

WWR Article - March 8, 2002

The SEC has reminded banks that they will be given sufficient time after a final rule is adopted to come into compliance with the broker-dealer registration requirements of the Gramm-Leach-Bliley Act, despite the rapidly approaching May 2002 compliance date. The SEC continues to work on the rule and discuss issues with banks and other interested parties. The original rule was roundly criticized by the banking industry and banking regulators for failing to take proper account of traditional banking services that may involve securities transactions (such as trust, custody and safekeeping activities).

The ICBA joined with other bank trade associations in a letter to the SEC applauding the reminder and noting some of the outstanding issues that need to be resolved to make the final rule workable.