AB898: Bill Text

AB898,32,14 10. Securities and bond underwriting.

AB898,32,15 11. Mutual fund activities.

AB898,32,16 12. Financial consulting.

AB898,32,17 13. Tax planning and preparation.

AB898,32,18 14. Community development and charitable activities.

AB898,32,19 15. Debt cancellation contracts.

AB898,32,21 16. Any activities reasonably related or incident to activities under subds. 1. to 15.

AB898,33,4 (b) An activity that is authorized by statute or regulation for financial institutions to engage in as of the effective date of this paragraph .... [revisor inserts date], is an activity that is reasonably related to or incident to the purposes of a universal bank. An activity permitted under the Bank Holding Company Act is an activity that is reasonably related to or incident to the purposes of a universal bank. The list of activities reasonably related or incident to the purposes of a universal bank may be expanded by the division. Any additional activity approved by the division shall be authorized for all universal banks.

AB898,33,7 (3) Notice requirement. A universal bank shall give 60 days' prior written notice to the division of the universal bank's intention to engage in an activity under this section.

AB898,33,13 (4) Standards for denial. The division may deny the authority of a universal bank to engage in an activity under this section, other than those activities described in sub. (2) (a) 1. to 16., if the division determines that the activity is not an activity reasonably related or incident to the purposes of a universal bank or that the financial institution is not well-capitalized or adequately capitalized or is the subject of an enforcement action.

AB898,33,17 (5) Insurance intermediation. A universal bank, or an officer or salaried employe of a universal bank, may obtain a license as an insurance intermediary, if otherwise qualified. A universal bank may not, directly or indirectly through a subsidiary, engage in the business of underwriting insurance.

AB898,33,19 (6) Other activities approved by the division. A universal bank may engage in any other activity that is approved by the division.

AB898,33,23 (7) Activities provided through a subsidiary. A universal bank may engage in activities under this section, directly or indirectly through a subsidiary, unless the division determines that an activity must be conducted through a subsidiary with appropriate safeguards to limit the risk exposure of the universal bank.

AB898,34,4 (8) Limitations on investments through subsidiaries. The amount of the investment in any one subsidiary that engages in an activity under this section may not exceed 20% of capital or, if approved by the division, a higher percentage authorized by the division. The aggregate investment in all subsidiaries that engage in an activity under this subsection may not exceed 50% of capital or, if approved by the division, a higher percentage authorized by the division.

AB898,34,7 (9) Ownership of subsidiaries. A subsidiary that engages in an activity under this section may be owned jointly, with one or more other financial institutions, individuals or entities.

AB898,34,9 222.0415 Trust powers. Subject to rules of the division, a universal bank may exercise trust powers in accordance with s. 221.0316.

AB898, s. 20 Section 20. 223.105 (3) (a) of the statutes is amended to read:

AB898,34,17 223.105 (3) (a) To assure compliance with such rules as may be established under s. 220.04 (7) the division of banking, the office of credit unions and the division of savings and loan institutions shall, at least once every 18 months, examine the fiduciary operations of each organization which is under its respective jurisdiction and is subject to examination under sub. (2). If a particular organization subject to examination under sub. (2) is not otherwise under the jurisdiction of one of the foregoing agencies, such examination shall be conducted by the division of banking.

AB898, s. 21 Section 21. 223.105 (4) of the statutes, as affected by 1997 Wisconsin Act 35, is amended to read:

AB898,35,4 223.105 (4) Notice of fiduciary operation. Except for those organizations licensed under ch. 221 or this chapter, any organization engaged in fiduciary operations as defined in this section shall, as required by rule, notify the division of banking, the office of credit unions or the division of savings and loan institutions of that fact, directing the notice to the agency then exercising regulatory authority over the organization or, if there is none, to the division of banking. Any organization which intends to engage in fiduciary operations shall, prior to engaging in such operations, notify the appropriate agency of this intention. The notifications required under this subsection shall be on forms and contain information required by the rules promulgated by the division of banking.

AB898, s. 22 Section 22. 223.105 (5) of the statutes is amended to read:

AB898,35,12 223.105 (5) Enforcement remedy. The division of banking or the division of savings and loan institutions or office of credit unions shall upon the failure of such organization to submit notifications or reports required under this section or otherwise to comply with the provisions of this section, or rules established by the division of banking under s. 220.04 (7), upon due notice, order such defaulting organization to cease and desist from engaging in fiduciary activities and may apply to the appropriate court for enforcement of such order.

AB898, s. 23 Section 23. 223.105 (6) of the statutes is amended to read:

AB898,35,20 223.105 (6) Sunset. Except for an organization regulated by the office of credit unions or the division of savings and loan institutions or an organization authorized by the division of banking to operate as a bank or trust company under ch. 221 or this chapter, an organization may not begin activity as a fiduciary operation under this section after May 12, 1992. An organization engaged in fiduciary operations under this section on May 12, 1992, may continue to engage in fiduciary operations after that date.

AB898, s. 24 Section 24. 227.52 (5) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB898,35,23 227.52 (5) Decisions of the division of savings and loan institutions.

AB898, s. 25 Section 25. 227.53 (1) (b) 4. of the statutes is amended to read:

AB898,36,4 227.53 (1) (b) 4. The savings and loan review board, the division of savings and loan institutions, except if the petitioner is the division of savings and loan institutions, the prevailing parties before the savings and loan review board shall be the named respondents.

AB898, s. 26 Section 26. 227.53 (1) (b) 5. of the statutes is amended to read:

AB898,36,9 227.53 (1) (b) 5. The savings bank review board, the division of savings and loan institutions, except if the petitioner is the division of savings and loan institutions, the prevailing parties before the savings bank review board shall be the named respondents.

AB898, s. 27 Section 27. 552.23 (1) of the statutes is amended to read:

AB898,36,21 552.23 (1) If the target company is an insurance company subject to regulation by the commissioner of insurance, a banking corporation subject to regulation by the division of banking, a savings bank or savings and loan association subject to regulation by the division of savings and loan institutions, or a company subject to regulation by the public service commission, the department of transportation or the office of the commissioner of railroads, the division of securities shall promptly furnish a copy of the registration statement filed under this chapter to the regulatory agency having supervision of the target company. Any hearing under this chapter involving any such target company shall be held jointly with the regulatory agency having supervision, and any determination following the hearing shall be made jointly with that regulatory agency.

AB898, s. 28 Section 28. 813.16 (7) of the statutes is amended to read:

AB898,37,3 813.16 (7) If the person seeking the appointment of a receiver under sub. (1) is a corporation supervised by the division of savings and loan institutions, home loan bank board, U.S. office of thrift supervision, federal deposit insurance corporation or resolution trust corporation, the court, unless the opposing party objects, shall appoint an officer of such corporation as receiver to act without compensation and to give such bond as the court requires.

AB898, s. 29 Section 29. 992.21 of the statutes is created to read:

AB898,37,9 992.21 Actions by division of savings and loan validated. Any action taken by the division of savings and loan between July 1, 1996, and the effective date of this section .... [revisor inserts date], under the name of the division of savings institutions has the same force and effect in all respects as if the action had been taken under the name of the division of savings and loan.

AB898, s. 30 Section 30. Nonstatutory provisions.

AB898,37,18 (1) Emergency rule-making authority. Using the procedure under section 227.24 of the statutes, the division of banking shall promulgate rules required under chapter 222 of the statutes, as created by this act, for the period before permanent rules become effective, but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a) and (2) (b) of the statutes, the division of banking need not provide evidence of the necessity of preservation of the public peace, health, safety or welfare in promulgating rules under this subsection.

AB898, s. 31 Section 31. Effective dates. This act takes effect on the day after publication, except as follows:

AB898,37,23 (1) Universal banking. The treatment of section 220.04 (9) (a) 2. and chapter 222 of the statutes takes effect on the first day of the 3rd month beginning after publication.

AB898,37,24 (End)