209 CMR 47.06(3) is hereby amended by inserting the following new paragraph:
(d) Financial subsidiaries.
1. Permissible Activities. A well capitalized bank may engage in the following authorized activities through a financial subsidiary:
a. Activities that are financial in nature and activities incidental to a financial activity, authorized pursuant to 12 U.S.C. 24a, including:
- Lending, exchanging, transferring, investing for others, or safeguarding money or securities;
- Providing financial, investment, or economic advisory services, including advising an investment company as defined in section 3 of the Investment Company Act (15 U.S.C. 80a-3);
- Issuing or selling instruments representing interests in pools of assets permissible for a bank to hold directly;
- Underwriting, dealing in, or making a market in securities;
- Engaging in any activity that the Board of Governors of the Federal Reserve System has determined, by order or regulation in effect on November 12, 1999, to be so closely related to banking or managing or controlling banks as to be a proper incident thereto (subject to the same terms and conditions contained in the order or regulation, unless the order or regulation is modified by the Board of Governors of the Federal Reserve System);
- Engaging, in the United States, in any activity that a bank holding company may engage in outside the United States and the Board of Governors of the Federal Reserve System has determined, under regulations prescribed or interpretations issued pursuant to section 4(c)(13) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)(13)) as in effect on November 11, 1999, to be usual in connection with the transaction of banking or other financial operations abroad;
- Activities that the Secretary of the Treasury in consultation with the Board of Governors of the Federal Reserve System, determines to be financial in nature or incidental to a financial activity; and
- Engaging in any other financial activities authorized by 12 CFR §5.39
b. Activities that are financial in nature and activities incidental to a financial activity directly or indirectly authorized under M.G.L.c.167 through M.G.L. c.167H.
2. Limitations. Activities that may be conducted by a subsidiary pursuant to 209 CMR 47.06(3)(d) shall strictly conform to the requirements of 209 CMR 47.05, provided, however, that the bank must maintain a satisfactory CRA rating at all times