No. 42127 (5-year Review): Rule R333-10. Securities Activities of Subsidiaries and Affiliates of State-Chartered Banks

DAR File No.: 42127
Filed: 09/15/2017 09:13:23 AM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 7-3-3.2 authorizes banks to engage in the business of purchasing, selling, underwriting, and dealing in securities subject to the limitations of this section. Section 7-3-21 outlines the conditions of stock ownership by banks.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

No supporting or opposing written comments have been received by the agency concerning this rule.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

The rule establishes safeguards to ensure that subsidiaries or affiliates engaged in securities activities do not endanger the safeness and soundness of the state-chartered banks. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Financial Institutions
BanksRoom 201
324 S STATE ST
SALT LAKE CITY, UT 84111-2393

Direct questions regarding this rule to:

• Paul Allred at the above address, by phone at 801-538-8854, by FAX at 801-538-8894, or by Internet E-mail at [e-mail]

Effective:

09/15/2017

Authorized by:

Edward Leary, Commissioner

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