The Financial Services Modernization Act first allowed Section 20 affiliates.

Question

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The Financial Services Modernization Act, also known as the Gramm-Leach-Bliley Act of 1999, did not first allow Section 20 affiliates. Section 20 affiliates, which are subsidiaries of bank holding companies permitted to engage in a limited range of securities activities, were first allowed by the Federal Reserve Board's interpretation of the Glass-Steagall Act in the late 1980s, well before the Gramm-Leach-Bliley Act.

The Financial Services Modernization Act First Allowed Section 20 Affiliates