PART 1501—FINANCIAL SUBSIDIARIES Authority: Section 5136A of the Revised Statutes of the United States (12 U.S.C. 24a). Source: 65 FR 14821, Mar. 20, 2000, unless otherwise noted. § 1501.1 How do you request the Secretary to determine that an activity is financial in nature or incidental to a financial activity? (a) Requests regarding activities that may be financial in nature or incidental to a financial activity. (b) What information must the request contain? (1) Identify and define the activity for which the determination is sought, specifically describing what the activity would involve and how the activity would be conducted; (2) Explain in detail why the activity should be considered financial in nature or incidental to a financial activity; and (3) Provide information supporting the requested determination and any other information required by the Secretary concerning the proposed activity. (c) What factors will the Secretary take into account in making his determination? (i) The purposes of section 5136A of the Revised Statutes (12 U.S.C. 24a) and the GLBA; (ii) Changes or reasonably expected changes in the marketplace in which banks compete; (iii) Changes or reasonably expected changes in the technology for delivering financial services; and (iv) Whether the activity is necessary or appropriate to allow a bank and the subsidiaries of a bank to— (A) Compete effectively with any company seeking to provide financial services in the United States; (B) Efficiently deliver information and services that are financial in nature through the use of technological means, including any application necessary to protect the security or efficacy of systems for the transmission of data or financial transactions; and (C) Offer customers any available or emerging technological means for using financial services or for the document imaging of data. (2) Because the Secretary is required to consider the factors in paragraph (c)(1) of this section in making his determination, any request should address the factors in paragraph (c)(1) of this section. The Secretary may also consider other relevant factors. (d) What action will the Secretary take after receiving a request? Consultation with the Board of Governors of the Federal Reserve System (Board). (2) Public notice. Federal Register (e) How and when will the Secretary act on a request? (1) Will inform the requester of the Secretary's final determination regarding the requested activity; and (2) Will endeavor to inform the requester of the Secretary's final determination within 60 days of completion of both the consultative process described in paragraph (d)(1) of this section and the public comment period, if any. (f) What must a national bank do in order for a financial subsidiary to engage in activities that the Secretary has determined are financial in nature or incidental to financial activities? § 1501.2 What activities has the Secretary determined to be financial in nature or incidental to a financial activity? (a) Activities permitted under section 5136A(b)(3) of the Revised Statutes (12 U.S.C. 24a(b)(3)). (i) Lending, exchanging, transferring, investing for others, or safeguarding financial assets other than money or securities; (ii) Providing any device or other instrumentality for transferring money or other financial assets; and (iii) Arranging, effecting, or facilitating financial transactions for the account of third parties. (2) Review of specific activities— Is a specific request required? (ii) Consultation with the Board of Governors of the Federal Reserve System. (iii) Secretary action on requests. (3) What factors will the Secretary consider? (4) What information must the request contain? (i) Identify and define the activity for which the determination is sought, specifically describing what the activity would involve and how the activity would be conducted; and (ii) Provide information supporting the requested determination, including information regarding how the proposed activity falls into one of the categories listed in paragraph (a)(1) of this section, and any other information required by the Secretary concerning the proposed activity. (b) [Reserved] [66 FR 260, Jan. 3, 2001] § 1501.3 Comparable ratings requirement for national banks among the second 50 largest insured banks. (a) Scope and purpose. (b) Alternative criteria. (c) Definition of long-term issuer credit rating. [66 FR 8750, Feb. 2, 2001]