[Code of Federal Regulations]
[Title 12, Volume 3, Parts 220 to 299]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR225.87]

[Page 114-115]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 225--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (REGULATION Y)--Table of Contents
 
                 Subpart I--Financial Holding Companies
 
Sec. 225.87  Is notice to the Board required after engaging in a financial activity?

    (a) Post-commencement notice is generally required to engage in a 
financial activity. A financial holding company that commences an 
activity or acquires shares of a company engaged in an activity listed 
in Sec. 225.86 must notify the appropriate Federal Reserve Bank in 
writing within 30 calendar days after commencing the activity or 
consummating the acquisition. The notice must describe, as relevant:
    (1) The activity commenced and the identity of each subsidiary 
engaged in the activity; or
    (2) The identity of the company acquired and the activities 
conducted by the company.
    (b) Are there any cases in which notice to the Board is not 
required? (1) Acquisitions that do not result in control of a company. A 
notice under paragraph (a) of this section is not required to acquire 
shares of a company if, following the acquisition, the financial holding 
company does not control the company.
    (2) Conduct of certain investment activities. Except as otherwise 
provided in this part or as determined by the Board in the exercise of 
its supervisory authority, no post-commencement notice is required as 
part of the conduct by a

[[Page 115]]

financial holding company or its subsidiary of:
    (i) Securities underwriting, dealing, or market making activities as 
described in section 4(k)(4)(E) of the Bank Holding Company Act (12 
U.S.C. 1843(k)(4)(E));
    (ii) Merchant banking activities conducted pursuant to section 
4(k)(4)(H) of the Bank Holding Company Act (12 U.S.C. 1843(k)(4)(H)), 
except as provided in Sec. 225.174(d); or
    (iii) Insurance company investment activities conducted pursuant to 
section 4(k)(4)(I) of the Bank Holding Company Act (12 U.S.C. 
1843(k)(4)(I)), so long as the financial holding company provides the 
notice described in Sec. 225.174(d) in connection with any insurance 
company investment that meets the thresholds in that section.
    (3) Condition for exceptions. The exception provided in paragraph 
(b)(2) of this section applies only if the financial holding company 
previously has provided notice to the Board under paragraph (a) of this 
section that the financial holding company has commenced or acquired 
control of a company engaged in the relevant activity for which an 
exception is claimed.

[Reg. Y, 65 FR 14439, Mar. 17, 2000]