SIA Submits Comments to Multiple Federal Agencies Certain Risk-Based Capital Rules

The Securities Industry Association (SIA)* provides comments to the Board of Governors of the Federal Reserve System (Federal Reserve), Docket No. R-1097; the Office of the Comptroller of the Currency (OCC), Docket No. 01-03; and the Federal Deposit Insurance Corporation (FDIC) on proposed risk-based capital rule for nonfinancial equity investments. SIA believes that, although improved since its original release, the proposal continues to unnecessarily to restrict the merchant banking and other equity investment activities of bank-affiliated securities firms. SIA feels that the better approach would be to rely on internal capital allocation models, which may be supplemented by appropriate levels of supervisory oversight.
*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.