[Federal Register Volume 60, Number 6 (Tuesday, January 10, 1995)]
[Notices]
[Pages 2601-2602]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-526]



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FEDERAL RESERVE SYSTEM

Union Bank of Switzerland, Zurich, Switzerland; Application to 
engage in Investment Advisory Activities

    Union Bank of Switzerland, Zurich, Switzerland (``Applicant''), has 
applied pursuant to section 4(c)(8) of the Bank Holding Company Act (12 
U.S.C. 1843(c)(8)) (``BHC Act'') and Sec.  225.23(a)(3) of the Board's 
Regulation Y (12 C.F.R. 225.23(a)(3)), through UBS Asset Management 
(New York) Inc., New York, New York (``Company''), to acquire 
Timberland Resources, Inc., West Lebanon, New Hampshire, and to engage 
in providing investment advisory services with respect to timberland 
investments, including:
(1) Identifying and evaluating investment opportunities relating to 
timber, forest resources and forest products, including reviewing and 
evaluating economic factors affecting demand and prices for forest 
products, the quality of timberland and forest product companies 
available for investment, the inventory of trees, and prospects for 
productive growth;
(2) Monitoring timber markets, including economic analysis of various 
timber species and growing areas, analysis of pricing trends, and 
identification of developing markets for timber and other forestry 
products;
(3) Advising on the structuring of particular investment transactions 
and the manner in which investment vehicles should be organized and 
capitalized;
(4) Providing advice with respect to the acquisition and disposition of 
particular investment properties, the financing of such properties, and 
the terms of particular acquisitions, dispositions and financings;
(5) Identifying and recommending third-party providers of services, 
such as foresters, tract managers, consultants, appraisers and 
independent auditors;
(6) Evaluating strategic, capital and operating plans for particular 
investments, including plans for planting, growing, cultivating, 
cutting, insuring and harvesting of particular properties in light of 
relevant economic projections, and advising with respect to such 
matters;
(7) Monitoring the performance of individual properties, including 
overseeing periodic valuations and appraisals of particular properties; 
and
(8) Providing investment reports to investors.Company's customers would 
include investment partnerships that exclusively invest in timber and 
forest resources. The proposed services would be provided throughout 
the world.
    Section 4(c)(8) of the BHC Act provides that a bank holding company 
may, with Board approval, engage in any activity which the Board, after 
due notice and opportunity for hearing, has determined (by order or 
regulation) to be so closely related to banking or managing or 
controlling banks as to be a proper incident thereto. This statutory 
test requires that two separate tests be met for an activity to be 
permissible for a bank holding company. First, the Board must determine 
that the activity is, as a general matter, closely related to banking. 
Second, the Board must find in a particular case that the performance 
of the activity by the applicant bank holding company may reasonably be 
expected to produce public benefits that outweigh possible adverse 
effects.
    Applicant maintains that the Board previously has determined that 
the proposed investment advisory services are closely related to 
banking. See 12 CFR 225.25 (b)(4)(iii) & (iv); Southeast Banking 
Corporation, 69 Federal Reserve Bulletin 564 (1983); Standard and 
Chartered Bank PLC, 71 Federal Reserve Bulletin 470 (1985). Applicant 
also maintains that consummation of this proposal would provide added 
convenience to Applicant's customers, and would not decrease 
competition or result in any other possible adverse effects.
    In publishing the proposal for comment, the Board does not take a 
[[Page 2602]] position on issues raised by the proposal. Notice of the 
proposal is published solely to seek the views of interested persons on 
the issues presented by the application and does not represent a 
determination by the Board that the proposal meets, or is likely to 
meet, the standards of the BHC Act.
    Any comments or requests for hearing should be submitted in writing 
and received by William W. Wiles, Secretary, Board of Governors of the 
Federal Reserve System, Washington, D.C. 20551, not later than January 
24, 1995. Any request for a hearing on this application must, as 
required by Sec.  262.3(e) of the Board's Rules of Procedure (12 CFR 
262.3(e)), be accompanied by a statement of the reasons why a written 
presentation would not suffice in lieu of a hearing, identifying 
specifically any questions of fact that are in dispute, summarizing the 
evidence that would be presented at a hearing, and indicating how the 
party commenting would be aggrieved by approval of the proposal.
    This application may be inspected at the offices of the Board of 
Governors or the Federal Reserve Bank of New York.

    Board of Governors of the Federal Reserve System, January 4, 
1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-526 Filed 1-9-95; 8:45 am]
BILLING CODE 6210-01-F