(a) Securities activities permitted. Pursuant to Finance
Code, §34.103(c), a state bank may establish or acquire a subsidiary
that engages in securities activities; provided, however, that said
subsidiary shall comply with all rules and regulations of the Securities
and Exchange Commission and the State Securities Board applicable
to registered brokers-dealers and investment advisors. The term "securities
activities" means issuing, underwriting, selling, or distributing,
or acting as agent or advisor in the issuing, underwriting, selling,
or distributing of stocks, bonds, debentures, notes, or other securities.
(b) Capitalization. Any subsidiary engaged in securities
activities pursuant to this regulation must comply with any applicable
state and federal capital requirements including, but not limited
to, those imposed by the Securities and Exchange Commission, the State
Securities Board, or the National Association of Securities Dealers.
(c) Limitations. A state bank may not purchase, in
its discretion as fiduciary or managing agent, any security underwritten,
distributed, or issued by the bank's securities subsidiary or any
security issued by an investment company advised by the subsidiary
unless authorized by applicable law.
(d) Notice. A state bank must, before or at the time
of submitting a letter to the banking commissioner regarding a new
subsidiary or new subsidiary activity as required by Finance Code, §34.103(e),
submit to the banking commissioner any related filing or application
made with the Federal Deposit Insurance Corporation or with a Federal
Reserve Bank, including filings required under the provisions of 12
CFR Part 208 or Part 362, or any successor regulation.
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Source Note: The provisions of this §3.3 adopted to be effective August 19, 1985, 10 TexReg 2542; amended to be effective May 17, 1996, 21 TexReg 3929; amended to be effective September 8, 2022, 47 TexReg 5328 |