United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2004_register executive 2010-09-23 article Part II Rules and Regulations D09002ee1c815b7bd D09002ee1c815b8ad United States Securities and Exchange Commission originator org United States Government Agency or Subagency The Securities and Exchange Commission ("Commission") is adopting rules to implement Section 17(i) of the Securities Exchange Act of 1934, which created a new framework for supervising an investment bank holding company ("IBHC"). An IBHC that meets specified criteria may elect to become a supervised investment bank holding company ("SIBHC") and be subject to supervision on a group- wide basis by filing a notice of intention with the Commission. Pursuant to the statute and these new rules, an IBHC is eligible to be an SIBHC if it is not affiliated with certain types of banks and has a subsidiary broker-dealer with a substantial presence in the securities markets. These rules provide an IBHC with a process to become supervised by the Commission as an SIBHC, and establish regulatory requirements for an SIBHC, including requirements regarding its group- wide internal risk management control system, recordkeeping, and periodic reporting (including reporting of consolidated computations of allowable capital and risk allowances consistent with the standards published by the Basel Committee on Banking Supervision). The Commission also is adopting an exemption to the Commission's risk assessment rules to exempt a broker-dealer that is affiliated with an SIBHC from those rules because these new SIBHC rules will require that an SIBHC maintain substantially the same records and make substantially the same reports to the Commission that a broker-dealer must maintain and make pursuant to the risk assessment rules. Finally, the Commission is amending the audit requirements for over-the-counter ("OTC") derivatives dealers to permit OTC derivatives dealers to file, as part of their annual audits, a supplemental report regarding the firm's internal risk management control systems based on agreed-upon procedures rather than auditing standards. 69 FR 34472 https://www.govinfo.gov/app/details/FR-2004-06-21/04-13413 04-13413 fr21jn04-14 RIN 3235-AI97 8010-01-P Release No. 34-49831 File No. S7-22-03 https://www.govinfo.gov/app/details/FR-2004-06-21/04-13413 https://www.govinfo.gov/content/pkg/FR-2004-06-21/html/04-13413.htm https://www.govinfo.gov/content/pkg/FR-2004-06-21/pdf/04-13413.pdf Administrative Practice and Procedure Authority Delegations (Government Agencies) Brokers Otc Derivatives Dealers Reporting and Recordkeeping Requirements Securities Supervised Investment Bank Holding Companies 29 p. 34472 34500 69 FR 34472 Title 17 Part 200 17 CFR Part 200 Title 17 Part 240 17 CFR Part 240 RIN 3235-AI97 Supervised Investment Bank Holding Companies; Federal Register Vol. 69, Issue RULE 04-13413 II SECURITIES AND EXCHANGE COMMISSION Release No. 34-49831 File No. S7-22-03 8010-01-P 04-13413 Final rule.

The Securities and Exchange Commission ("Commission") is adopting rules to implement Section 17(i) of the Securities Exchange Act of 1934, which created a new framework for supervising an investment bank holding company ("IBHC"). An IBHC that meets specified criteria may elect to become a supervised investment bank holding company ("SIBHC") and be subject to supervision on a group- wide basis by filing a notice of intention with the Commission. Pursuant to the statute and these new rules, an IBHC is eligible to be an SIBHC if it is not affiliated with certain types of banks and has a subsidiary broker-dealer with a substantial presence in the securities markets. These rules provide an IBHC with a process to become supervised by the Commission as an SIBHC, and establish regulatory requirements for an SIBHC, including requirements regarding its group- wide internal risk management control system, recordkeeping, and periodic reporting (including reporting of consolidated computations of allowable capital and risk allowances consistent with the standards published by the Basel Committee on Banking Supervision). The Commission also is adopting an exemption to the Commission's risk assessment rules to exempt a broker-dealer that is affiliated with an SIBHC from those rules because these new SIBHC rules will require that an SIBHC maintain substantially the same records and make substantially the same reports to the Commission that a broker-dealer must maintain and make pursuant to the risk assessment rules. Finally, the Commission is amending the audit requirements for over-the-counter ("OTC") derivatives dealers to permit OTC derivatives dealers to file, as part of their annual audits, a supplemental report regarding the firm's internal risk management control systems based on agreed-upon procedures rather than auditing standards.

August 20, 2004. With respect to calculations of allowable capital and risk allowances, internal risk management control systems, and books and records and reporting requirements, contact Michael A. Macchiaroli, Associate Director, at (202) 942-0132, Thomas K. McGowan, Assistant Director, at (202) 942-4886, Rose Russo Wells, Attorney, at (202) 942-0143, Bonnie L. Gauch, Attorney, at (202) 942- 0765, or David Lynch, Financial Economist, at (202) 942-0059, Division of Market Regulation, Securities and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-1001. Administrative Practice and Procedure Authority Delegations (Government Agencies) Brokers Otc Derivatives Dealers Reporting and Recordkeeping Requirements Securities Supervised Investment Bank Holding Companies Securities: Supervised investment bank holding companies, http://commdocs.house.gov/committees/bank/hba57791.000/hba57791_0f.htm http://financialservices.house.gov/banking/62499crm.pdf http://www.bis.org/bcbs/cp3full.pdf http://www.bis.org/publ/joint01.pdf http://www.federalreserve.gov/boarddocs/press/general/2001/20010111/DisclosureGroupLetter.pdf www.FATF-GAFI.org Vol. 69, no. 118 Office of the Federal Register, National Archives and Records Administration 2004-06-21 continuing daily deposited born digital 311 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2004-06-21 P0b002ee18097be6b 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr21jn04 https://www.govinfo.gov/app/details/FR-2004-06-21 https://www.govinfo.gov/content/pkg/FR-2004-06-21/pdf/FR-2004-06-21.pdf https://www.govinfo.gov/content/pkg/FR-2004-06-21/xml/FR-2004-06-21.xml fdlp 34251 34548 DGPO 2010-09-23 2024-06-06 FR-2004-06-21 machine generated eng FR FR-2004-06-21 69 118