[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR208.76]

[Page 250-251]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM (REGULATION H)--Table of Contents
 
         Subpart G--Financial Subsidiaries of State Member Banks
 
Sec. 208.76  What Federal Reserve approvals are necessary for financial subsidiaries?

    (a) Notice requirements. (1) A state member bank may not acquire 
control of, or an interest in, a financial subsidiary unless it files a 
notice (in letter form, with enclosures) with the appropriate Reserve 
Bank.
    (2) A state member bank may not engage in any additional activity 
pursuant to Sec. 208.72(a)(1) or (2) through an existing financial 
subsidiary unless the state member bank files a notice (in letter form, 
with enclosures) with the appropriate Reserve Bank.
    (b) Contents of Notice. Any notice required by paragraph (a) of this 
section must:
    (1) In the case of a notice filed under paragraph (a)(1) of this 
section, describe the transaction(s) through which the bank proposes to 
acquire control of, or an interest in, the financial subsidiary;
    (2) Provide the name and head office address of the financial 
subsidiary;

[[Page 251]]

    (3) Provide a description of the current and proposed activities of 
the financial subsidiary and the specific authority permitting each 
activity;
    (4) Provide the capital ratios as of the close of the previous 
calendar quarter for all relevant capital measures, as defined in 
section 38 of the Federal Deposit Insurance Act (12 U.S.C. 1831o), for 
the bank and each of its depository institution affiliates;
    (5) Certify that the bank and each of its depository institution 
affiliates was well capitalized at the close of the previous calendar 
quarter and is well capitalized as of the date the bank files its 
notice;
    (6) Certify that the bank and each of its depository institution 
affiliates is well managed as of the date the bank files its notice;
    (7) Certify that the bank meets the debt rating or alternative 
requirement of Sec. 208.71(b), if applicable; and
    (8) Certify that the bank and its financial subsidiaries are in 
compliance with the asset limit set forth in Sec. 208.71(a)(2) both 
before the proposal and on a pro forma basis.
    (c) Insurance activities. (1) If a notice filed under paragraph (a) 
of this section relates to the initial affiliation of the bank with a 
company engaged in insurance activities, the notice must describe the 
type of insurance activity that the company is engaged in or plans to 
conduct and identify each state where the company holds an insurance 
license and the state insurance regulatory authority that issued the 
license.
    (2) The appropriate Reserve Bank will send a copy of any notice 
described in paragraph (c)(1) of this section to the appropriate state 
insurance regulatory authorities and provide such authorities with an 
opportunity to comment on the proposal.
    (d) Approval procedures. A notice filed with the appropriate Reserve 
Bank under paragraph (a) of this section will be deemed approved on the 
fifteenth day after receipt of a complete notice by the appropriate 
Reserve Bank, unless prior to that date the Board or the appropriate 
Reserve Bank notifies the bank that the notice is approved, that the 
notice will require additional review, or that the bank does not meet 
the requirements of this subpart. Any notification of early approval of 
a notice must be in writing.