Certified Regulatory Compliance Manager (CRCM) — Question 267

Which of the following is NOT a corporate practice required of bank holding companies?

Answer options

• A. Each bank subsidiary must file a notice with the Federal Reserve before offering a new product.
• B. Each bank subsidiary must conduct its operations in a safe and sound manner.
• C. Each bank subsidiary must be insured by the FDIC.
• D. Each bank subsidiary must file a notice with the Federal Reserve before purchasing any of its own securities.

Correct answer: A

Explanation

The correct answer is A because while bank subsidiaries must notify the Federal Reserve of certain actions, they are not required to file a notice specifically before offering new products. Options B, C, and D are requirements that ensure the safety, soundness, and regulatory compliance of bank subsidiaries.