Market regulation · 30/04/2004

SEC Adopts Rule Exempting Qualified Foreign Banks from Insider Lending Prohibition

The Securities and Exchange Commission has adopted a rule exempting qualified foreign banks from the insider lending prohibition under Section 13(k) of the Securities Exchange Act of 1934, allowing them to lend to their directors and executive officers without violating the prohibition, similar to domestic banks that are insured under the Federal Deposit Insurance Act.