The Financial Services Act of 1999 would eliminate the exclusion of banks from the definitions of "broker" and "dealer" in the Securities and Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940. The 1999 act describes activities that a bank could engage in without being deemed a broker or a dealer.

A bank would not be allowed to merely rely upon its status as a bank in conducting securities-type activities, but rather would need to demonstrate that its functions (e.g., trust activities, effecting securities trades for accounts, custody, clearing, etc.) fall within detailed, legislatively prescribed exceptions to being considered a broker-dealer.

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