Proposed Addition of "Finder" Activities as Permissible for Financial Holding Companies
August 8, 2000
Circular No. 11263

To All Financial Holding Companies and Others Concerned in the Second Federal Reserve District:

The following is from a statement issued by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has requested public comments on a proposed rule that would allow financial holding companies to act as a "finder" by bringing together buyers and sellers of financial and nonfinancial products and services for transactions that the buyers and sellers themselves negotiate and consummate.

Comments are requested by September 5, 2000.

The proposed rule, which was developed in consultation with the Secretary of the Treasury, would allow financial holding companies to, among other things, host an Internet marketplace consisting of links to the web sites of third-party buyers and sellers.

It also would permit financial holding companies to operate a web site that allows buyers and sellers to post information concerning the products and services they are willing to buy and sell and to enter into transactions among themselves.

The Board's proposal (pdf - 138kb), as published in the Federal Register, of August 3 is available. Written comments should be sent directly to the Board, as specified in the notice.