Ask Reggi Your Question Now
Can you summarize 17 KSAR Article 19?
Office of the State Bank Commissioner > Bank Subsidiaries Engaged in Securities Activities
Short Summary
The provided legal document pertains to the organization and approval process for bank subsidiaries engaged in securities activities in the state of Kansas. It states that each bank subsidiary must be a wholly-owned subsidiary of the parent bank and may lease or sell office space from the parent bank, provided it represents fair market value. The bank subsidiary may employ parent bank employees, as long as they are fairly compensated. Additionally, the bank subsidiary must obtain prior approval from the bank commissioner and the state banking board before locating any office outside the state of Kansas. The document also mentions that any violation of state banking department regulations can result in the denial of an application or revocation of authority for a bank to own, hold, or operate a bank subsidiary engaged in securities activities. In such cases, the affected bank has the right to a hearing pursuant to the Kansas administrative procedure act. The document also governs the registration and licensing requirements for bank subsidiaries engaged in securities activities. It states that each bank subsidiary must comply with the registration and licensing requirements of the appropriate federal and state securities regulatory agencies. The bank subsidiary must maintain copies of all required registration documents and licenses or registration documents issued by each regulatory agency. Any violation of federal or state securities laws or regulations may result in the denial or revocation of authority for a bank to own, hold, or operate a bank subsidiary engaged in securities activities. The expenses of each examination of a bank subsidiary, deemed necessary by the bank commissioner after receiving notification of a violation, shall be paid by the bank. The document references the Kansas Administrative Regulations and the Office of the State Bank Commissioner.
Whom does it apply to?
Bank subsidiaries engaged in securities activities in the state of Kansas
What does it govern?
Organization and approval process for bank subsidiaries engaged in securities activities
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Denial of application or revocation of authority for a bank to own, hold, or operate a bank subsidiary engaged in securities activities
Jurisdiction
Kansas