In that exemption’s place, the GLB Act provides specific exemptions that permit banks to continue to conduct securities activities that are part of providing traditional banking products and services, including trust and fiduciary, custody and safekeeping and other specified traditional banking products and services. The SEC recently decided to invite public comment on rules that implement these exemptions.
I believe that it is instructive to remember the context in which Congress adopted this change. Importantly, the replacement of the general exemption for banks with more-targeted exemptions was not in response to problems at banks providing trust and fiduciary or other traditional banking products and services.