WASHINGTON - The Securities and Exchange Commission on Wednesday announced that provisions of the Gramm-Leach-Bliley Act that would require some banks to register as broker-dealers will not be enforced until Oct. 1.
The law, originally intended to take effect May 12, outlines the extent to which the SEC has the authority to regulate certain securities-related activity conducted in banks. It makes numerous general exceptions for traditional banking products, but bankers and bank trade groups have been clamoring for guidelines from the SEC that would spell out which specific products are exempted.
According to Wednesday's press release, the SEC will issue a proposed rule interpreting the law "shortly."
The SEC will also delay implementation of another provision in the law that would limit the percentage of a bank's total income that can come from securities-related activities without requiring that it be registered as a broker-dealer.
