Gramm-Leach-Bliley push out provisions

[fidu]

What is the potential effect of GLB as it relates to trades executed by a state chartered trust department for clients - such as passive order taking and other securities transactions?

what is the current status of the legislation and the scheduled effective date?

does this end the trust exception?

[fidu]

anyone potentially effected by GLB provisions. Anyone have a status update on GLB for me please?

[Guest halka]

Don't think there are any short, simple, or conclusive answers to your questions and I'm not a GLB expert.... But, GLB (in its current form) basically provides for exemption from the push out provisions if the security transactions are a component of its ongoing fiduciary business and the bank is "chiefly compensated" via fees for fiduciary services, i.e. the majority of the bank's compensation from the account relationship is an annual fee (e.g., % of assets under management) and/or flat securities transaction fees that do not exceed the bank's costs in executing the transaction . This analysis is to be conducted on an account by account basis. GLB also offers a safe harbor test which based on a department-wide examination. Essentially, the bank must demonstrate that its annual "sales compensation" is less than 10% of its total "relationship compensation." Needless to say, there are many definitional and procedural details and confusion. Last I heard, the GLB effective date is floating... the SEC, OCC, and other agencies are still skirmishing.