Separately Identifiable
Department or Division of a Bank
Rule G-1. (a) A
separately identifiable department or division of a bank, as such
term is used in section 3(a)(30) of the Act, is that unit of the
bank which conducts all of the activities of the bank relating
to the conduct of business as a municipal securities dealer ("municipal
securities dealer activities"), as such activities are hereinafter
defined, provided that:
(1) Such unit is under the direct supervision of an officer
or officers designated by the board of directors of the bank
as responsible for the day-to-day conduct of the bank's municipal
securities dealer activities, including the supervision of all
bank employees engaged in the performance of such activities;
and
(2) There are separately maintained in or separately extractable
from such unit's own facilities or the facilities of the bank,
all of the records relating to the bank's municipal securities
dealer activities, and further provided that such records
are so maintained or otherwise accessible as to permit independent
examination thereof and enforcement of applicable provisions
of the Act, the rules and regulations thereunder and the rules
of the Board.
(b) For purposes of this rule, the activities of the bank which
shall constitute municipal securities dealer activities are as
follows:
(1) underwriting, trading and sales of municipal securities;
(2) financial advisory and consultant services for issuers
in connection with the issuance of municipal securities;
(3) processing and clearance activities with respect to municipal
securities;
(4) research and investment advice with respect to municipal
securities;
(5) any activities other than those specifically enumerated
above which involve communication, directly or indirectly, with
public investors in municipal securities; and
(6) maintenance of records pertaining to the activities described
in paragraphs (1) through (5) above;
provided, however, that the activities enumerated in
paragraphs (4) and (5) above shall be limited to such activities
as they relate to the activities enumerated in paragraphs (1)
and (2) above.
(c) The fact that directors and senior officers of the bank
may from time to time set broad policy guidelines affecting
the bank as a whole and which are not directly related to the
day-to-day conduct of the bank's municipal securities dealer
activities, shall not disqualify the unit hereinbefore described
as a separately identifiable department or division of the bank
or require that such directors or officers be considered as
part of such unit.
(d) The fact that the bank’s municipal securities dealer
activities are conducted in more than one geographic organizational
or operational unit of the bank shall not preclude a finding
that the bank has a separately identifiable department or division
for purposes of this rule, provided, however, that
all such units are identifiable and that the requirements of
paragraphs (1) and (2) of section (a) of this rule are met with
respect to each such unit. All such geographic, organizational
or operational units of the bank shall be considered in the
aggregate as the separately identifiable department or division
of the bank for purposes of this rule.
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