Grandfathered activities

Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United States, but which were acquired or engaged in before a particular date. Such activities may be continued under the "grandfather" clauses of the Bank Holding Company Act and the International Banking Act.

Grandfathered Activities

Activities that are permitted when they otherwise would not be permitted because of a grandfather clause. A grandfather clause is a portion of a new law, regulation, or anything else that exempts certain persons or businesses from abiding by it. For example, suppose a country passes a law stating that it is illegal to own a cat. A grandfather clause may allow persons who already own cats to continue to keep them, but would prevent people who do not own cats from buying them. In this case, owning a cat is a grandfathered activity. Grandfathered activities are controversial, but they are also relatively common.

References in periodicals archive

(26) Part IV discusses the issues raised by grandfathered activities and assesses whether the FRB's proposed rules address those concerns.

While the statute restricts these grandfathered activities to comprising no more than 5% of a FHC's total consolidated assets, it is unclear how strict that limit is.

This Note focuses on the proposals relating specifically to grandfathered activities.).

Grandfathered into Commerce: Assessing the Federal Reserve's Proposed Rules Limiting Physical Commodities Activities of Financial Holding Companies

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