Investment Adviser Activities — 1996-08-30 [96-22168]

The Board is adopting a final rule amending its interpretive rule regarding investment adviser activities of bank holding companies to allow a bank holding company (and its bank and nonbank subsidiaries) to purchase, in a fiduciary capacity, securities of an investment company advised by the bank holding company if the purchase is specifically authorized by the terms of the instrument creating the fiduciary relationship, by court order, or by the law of the jurisdiction under which the trust is administered. This amendment would reflect changes that have occurred since the rule was adopted; and would conform the Board's interpretive rule to rules applied to banks by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, and the standard in section 23B of the Federal Reserve Act for this type of activity.