AB563-engrossed,25,13 4(2) Reasonably related powers. (a) Subject to any applicable state or federal
5regulatory or licensing requirements, a universal bank may engage, directly or
6indirectly through a subsidiary, in activities reasonably related or incident to the
7purposes of the universal bank. Activities reasonably related or incident to the
8purposes of the universal bank are those activities that are part of the business of
9financial institutions, or closely related to the business of financial institutions, or
10convenient and useful to the business of financial institutions, or reasonably related
11or incident to the operation of financial institutions or are financial in nature.
12Activities that are reasonably related or incident to the purposes of a universal bank
13include the following:
AB563-engrossed,25,1414 1. Business and professional services.
AB563-engrossed,25,1515 2. Data processing.
AB563-engrossed,25,1616 3. Courier and messenger services.
AB563-engrossed,25,1717 4. Credit-related activities.
AB563-engrossed,25,1818 5. Consumer services.
AB563-engrossed,25,1919 6. Real estate-related services, including real estate brokerage services.
AB563-engrossed,25,2020 7. Insurance and related services, other than insurance underwriting.
AB563-engrossed,25,2121 8. Securities brokerage.
AB563-engrossed,25,2222 9. Investment advice.
AB563-engrossed,25,2323 10. Securities and bond underwriting.
AB563-engrossed,25,2424 11. Mutual fund activities.
AB563-engrossed,25,2525 12. Financial consulting.
AB563-engrossed,26,1
113. Tax planning and preparation.
AB563-engrossed,26,22 14. Community development and charitable activities.
AB563-engrossed,26,33 15. Debt cancellation contracts.
AB563-engrossed,26,54 16. Any activities that are reasonably related or incident to activities under
5subds. 1. to 15., as determined by rule of the division under par. (b).
AB563-engrossed,26,156 (b) An activity that is authorized by statute or regulation for financial
7institutions to engage in as of the effective date of this paragraph .... [revisor inserts
8date], is an activity that is reasonably related to or incident to the purposes of a
9universal bank. An activity permitted under the Bank Holding Company Act is an
10activity that is reasonably related to or incident to the purposes of a universal bank.
11The division may, by rule, expand the list of activities under par. (a) 1. to 15. that are
12reasonably related or incident to the purposes of a universal bank and, by rule, may
13establish which activities are reasonably related or incident to the activities under
14par. (a) 1. to 15. Any activity approved by rule of the division under this paragraph
15shall be authorized for all universal banks.
AB563-engrossed,26,18 16(3) Notice requirement. A universal bank shall give 60 days' prior written
17notice to the division of the universal bank's intention to engage in an activity under
18this section.
AB563-engrossed,27,2 19(4) Standards for denial. The division may deny the authority of a universal
20bank to engage in an activity under this section, other than those activities described
21in sub. (2) (a) 1. to 15., if the division determines that the activity is not an activity
22reasonably related or incident to the purposes of a universal bank. The division may
23deny the authority of a universal bank to engage in an activity under this section if
24the division determines that the universal bank is not well-capitalized, that the

1universal bank is the subject of an enforcement action or that the universal bank
2does not have satisfactory management expertise for the proposed activity.
AB563-engrossed,27,6 3(5) Insurance intermediation. A universal bank, or an officer or salaried
4employe of a universal bank, may obtain a license as an insurance intermediary, if
5otherwise qualified. A universal bank may not, directly or indirectly through a
6subsidiary, engage in the business of underwriting insurance.
AB563-engrossed,27,8 7(6) Other activities approved by the division. A universal bank may engage
8in any other activity that is approved by rule of the division.
AB563-engrossed,27,12 9(7) Activities provided through a subsidiary. A universal bank may engage
10in an activity under this section, directly or indirectly through a subsidiary, unless
11the division determines that the activity must be conducted through a subsidiary
12with appropriate safeguards to limit the risk exposure of the universal bank.
AB563-engrossed,27,18 13(8) Limitations on investments through subsidiaries. The amount of the
14investment in any one subsidiary that engages in an activity under this section may
15not exceed 20% of capital or, if approved by the division, a higher percentage
16authorized by the division. The aggregate investment in all subsidiaries that engage
17in an activity under this subsection may not exceed 50% of capital or, if approved by
18the division, a higher percentage authorized by the division.
AB563-engrossed,27,21 19(9) Ownership of subsidiaries. A subsidiary that engages in an activity under
20this section may be owned jointly, with one or more other financial institutions,
21individuals or entities.
AB563-engrossed,27,23 22222.0415 Trust powers. Subject to rules of the division, a universal bank may
23exercise trust powers in accordance with s. 221.0316.
AB563-engrossed, s. 2t 24Section 2t. 227.245 of the statutes is created to read:
AB563-engrossed,28,4
1227.245 Permanent rules; exemptions. (1) Promulgation of universal
2banking rules.
Except as provided in subs. (2) and (3), the division of banking may
3promulgate a rule under s. 222.0413 (2) (b) without complying with the notice,
4hearing and publication procedures under this chapter.
AB563-engrossed,28,10 5(2) Filing and publication. The division of banking shall file a rule described
6under sub. (1) as provided in s. 227.20. At the time that the rule is filed, the division
7of banking shall mail a copy of the rule to the chief clerk of each house and to each
8member of the legislature, shall publish in the official state newspaper a class 1
9notice under ch. 985 containing a copy of the rule and shall take any other step it
10considers feasible to make the rule known to persons who will be affected by the rule.
AB563-engrossed,28,12 11(3) Effective date. A rule described under sub. (1) takes effect as provided
12under s. 227.22.
AB563-engrossed, s. 3 13Section 3. Nonstatutory provisions.
AB563-engrossed,28,2314 (1) Except as otherwise provided in this subsection, using the procedure under
15section 227.24 of the statutes, the division of banking may promulgate rules
16authorized under chapter 222 of the statutes, as created by this act, for the period
17before permanent rules become effective, but not to exceed the period authorized
18under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24
19(1) (a) and (2) (b) of the statutes, the division of banking need not provide evidence
20of the necessity of preservation of the public peace, health, safety or welfare in
21promulgating rules under this subsection. This subsection does not apply to the
22promulgation of rules under section 222.0413 (2) (b) of the statutes, as created by this
23act.
AB563-engrossed, s. 4m 24Section 4m.0 Effective dates. This act takes effect on the first day of the 3rd
25month beginning after publication, except as follows:
AB563-engrossed,29,2
1(1) The treatment of sections 222.0413 (2) (b) and 227.245 of the statutes and
2Section 3 of this act take effect on the day after publication.
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