Good news on the GLB front

"GLB" stands for Gramm-Leach-Bliley, the legislation that purported to level the playing field in the financial services industry. Based upon that authority, the SEC in 2001 proposed to begin regulating the trust industry. An outcry ensued.

Trust Updates reports good news today. Responding to Congressional push-back, the SEC has relented, and trust departments can go about their fiduciary business in their traditional manner.

The proposed rules would allow a bank, subject to certain conditions, to continue to conduct securities transactions for customers as part of its trust and fiduciary, custodial and deposit "sweep" functions, and to refer customers to a securities broker-dealer under a networking arrangement.

Copies of the proposed rule are available at http://www.sec.gov/rules/proposed/2006/34-54946.pdf and at http://www.sec.gov/rules/proposed/2006/34-54947.pdf .