---
kind: "section"
citation: "12 C.F.R. § 1501.2"
title: "12"
number: "1501.2"
heading: "What activities has the Secretary determined to be financial in nature or incidental to a financial activity?"
url: "https://uscodex.org/cfr/12/1501.2"
---

# §1501.2. What activities has the Secretary determined to be financial in nature or incidental to a financial activity?

- (a) **Activities permitted under section 5136A(b)(3) of the Revised Statutes (12 U.S.C. 24a(b)(3)).**
  - (1) The following types of activities are financial in nature or incidental to a financial activity when conducted pursuant to a determination by the Secretary under [paragraph (a)(2)](#a-2) of this section:
    - (i) Lending, exchanging, transferring, investing for others, or safeguarding financial assets other than money or securities;
    - (ii) Providing any device or other instrumentality for transferring money or other financial assets; and
    - (iii) **Arranging, effecting, or facilitating financial transactions for the account of third parties.**
  - (2) **Review of specific activities—**
    - (i) **Is a specific request required?** A financial subsidiary that wishes to engage on the basis of [paragraph (a)(1)](#a-1) of this section in an activity that is not otherwise permissible for a financial subsidiary must obtain a determination from the Secretary that the activity is permitted under [paragraph (a)(1)](#a-1).
    - (ii) **Consultation with the Board of Governors of the Federal Reserve System.** After receiving a request under this section, the Secretary will provide the Board of Governors of the Federal Reserve System (Board) with a copy of the request and consult with the Board in accordance with section 5136A(b)(1)(B)(i) of the Revised Statutes ([12 U.S.C. 24a(b)(1)(B)(i)](/usc/12/24a.md?p=b-1-B-i)).
    - (iii) **Secretary action on requests.** After consultation with the Board, the Secretary will promptly make a written determination regarding whether the specific activity described in the request is included in an activity category listed in [paragraph (a)(1)](#a-1) of this section and is therefore either financial in nature or incidental to a financial activity.
  - (3) **What factors will the Secretary consider?** In evaluating a request made under this section, the Secretary will take into account the factors listed in section 5136A(b)(2) of the Revised Statutes ([12 U.S.C. 24a(b)(2)](/usc/12/24a.md?p=b-2)) that the Secretary must consider when determining whether an activity is financial in nature or incidental to a financial activity.
  - (4) **What information must the request contain?** Any request by financial subsidiary under this section must be in writing and must:
    - (i) Identify and define the activity for which the determination is sought, specifically describing what the activity would involve and how the activity would be conducted; and
    - (ii) Provide information supporting the requested determination, including information regarding how the proposed activity falls into one of the categories listed in [paragraph (a)(1)](#a-1) of this section, and any other information required by the Secretary concerning the proposed activity.
- (b) [Reserved]

## Notes

### Amendments

[66 FR 260, Jan. 3, 2001]

### Authority

Authority: Section 5136A of the Revised Statutes of the United States (12 U.S.C. 24a).

### Source

Source: 65 FR 14821, Mar. 20, 2000, unless otherwise noted.

### Amendments

[66 FR 260, Jan. 3, 2001]