ACTIVITIES THAT ARE FINANCIAL IN NATURE

For purposes of this subsection, the following activities shall be considered to be financial in 

nature:

(A) Lending, exchanging, transferring, investing for others, or safeguarding money 

or securities.

(B) Insuring, guaranteeing, or indemnifying against loss, harm, damage, illness, 

disability, or death, or providing and issuing annuities, and acting as principal, agent, 

or broker for purposes of the foregoing, in any State.

(C) Providing financial, investment, or economic advisory services, including advising 

an investment company (as defined in section 3 of the Investment Company Act of 

1940).

(D) Issuing or selling instruments representing interests in pools of assets 

permissible for a bank to hold directly.

(E) Underwriting, dealing in, or making a market in securities."

(F) Engaging in any activity that the Board has determined, by order or regulation 

that is in effect on the date of the enactment of the Gramm-Leach-Bliley Act, 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 such order 

or regulation, unless modified by the Board).

(G) Engaging, in the United States, in any activity that--

(i) a bank holding company may engage in outside the United States; and

(ii) the Board has determined, under regulations prescribed or interpretation issued 

pursuant to subsection (c)(13) (as in effect on the day before the date of the 

enactment of the Gramm-Leach-Bliley Act) to be usual in connection with the 

transaction of banking or other financial operations abroad.

(H) Directly or indirectly acquiring or controlling, whether as principal, on behalf of 1 

or more entities (including entities, other than a depository institution or subsidiary 

of a depository institution, that the bank holding company controls), or otherwise, 

shares, assets, or ownership interests (including debt or equity securities, 

partnership interests, trust certificates, or other instruments representing ownership) 

of a company or other entity, whether or not constituting control of such company or 

entity, engaged in any activity not authorized pursuant to this section if--

(i) the shares, assets, or ownership interests are not acquired or held by a 

depository institution or subsidiary of a depository institution;

(ii) such shares, assets, or ownership interests are acquired and held by--

(I) a securities affiliate or an affiliate thereof; or
(II) an affiliate of an insurance company described in subparagraph (I)(ii) that 

provides investment advice to an insurance company and is registered pursuant to 

the Investment Advisors Act of 1940, or an affiliate of such investment advisor; as 

part of a bona fide underwriting or merchant or investment banking activity, 

including investment activities engaged in for the purpose of appreciation and 

ultimate resale or disposition of the investment;

(iii) such shares, assets, or ownership interests are held for a period of time to

enable the sale or disposition thereof on a reasonable basis consistent with the 

financial viability of the activities described in clause (ii); and

(iv) during the period such shares, assets or ownership interests are held, the bank 

holding company does not routinely manage or operate such company or entity 

except as may be necessary or required to obtain a reasonable return on investment 

upon resale or disposition.

(I) Directly or indirectly acquiring or controlling, whether as principal, on behalf of 1 

or more entities (including entities, other than a depository institution or subsidiary 

of a depository institution, that the bank holding company controls) or otherwise, 

shares, assets, or ownership interests, trust certificates or other instruments 

representing ownership) of a company or other entity, whether or not constituting 

control of such company or entity, engaged in any activity not authorized pursuant 

to this section if--

(i) the shares, assets, or ownership interests are not acquired or held by a 

depository institution or a subsidiary of a depository institution;

(ii) such shares, assets, or ownership interests are acquired and held by an 

insurance company that is predominantly engaged in underwriting life, accident and 

health, or property and casualty insurance (other that credit-related insurance) or 

providing and issuing annuities;

(iii) such shares, assets, or ownership interests represent an investment made in the 

ordinary course of business of such insurance company in accordance with relevant 

State law governing such investment; and

(iv) during the period such shares, assets, or ownership interests are held, the bank holding 

company does not routinely manage or operate such company except as may be necessary 

or required to obtain a reasonable return on investment.