PUBLIC LAW 106-102—NOV. 12, 1999 113 STAT. 1365 "(iii) any licensed insurance company by or on behalf of any State regulatory authority responsible for the supervision of insurance companies; and "(iv) any other subsidiary that the Board finds to be comprehensively supervised by a Federal or State authority. " (3) CAPITAL. — "(A) IN GENERAL.— The Board may not, by regulation, guideline, order, or otherwise, prescribe or impose any capital or capital adequacy rules, guidelines, standards, or requirements on any functionally regulated subsidiary of a bank holding company that— "(i) is not a depository institution; and "(ii) is— "(I) in compliance with the applicable capital requirements of its Federal regulatory authority (including the Securities and Exchange Commission) or State insurance authority; "(II) properly registered as an investment adviser under the Investment Advisers Act of 1940, or with any State; or "(III) is licensed as an insurance agent with the appropriate State insurance authority. "(B) RULE OF CONSTRUCTION. —Subparagraph (A) shall not be construed as preventing the Board from imposing capital or capital adequacy rules, guidelines, standards, or requirements with respect to— "(i) activities of a registered investment adviser other than with respect to investment advisory activities or activities incidental to investment advisory activities; or "(ii) activities of a licensed insurance agent other than insurance agency activities or activities incidental to insurance agency activities. "(C) LIMITATIONS ON INDIRECT ACTION. —In developing, establishing, or assessing bank holding company capital or capital adequacy rules, guidelines, standards, or requirements for purposes of this paragraph, the Board may not take into account the activities, operations, or investments of an affiliated investment company registered under the Investment Company Act of 1940, unless the investment company is— "(i) a bank holding company; or "(ii) controlled by a bank holding company by reason of ownership by the bank holding company (including through all of its affiliates) of 25 percent or more of the shares of the investment company, and the shares owned by the bank holding company have a market value equal to more than $1,000,000. " (4) FUNCTIONAL REGULATION OF SECURITIES AND INSUR- ANCE ACTIVITIES. — "(A) SECURITIES ACTIVITIES. —Securities activities conducted in a functionally regulated subsidiary of a depository institution shall be subject to regulation by the Securities and Exchange Commission, and by relevant State securities authorities, as appropriate, subject to section 104 of the Gramm-Leach-Bliley Act, to the same extent as if they
�
