Certified Regulatory Compliance Manager (CRCM) — Question 271

A subsidiary of First National Bank can legally participate in all but one of the following businesses. In which business may the subsidiary NOT legally participate?

Answer options

• A. Selling securities
• B. Selling insurance
• C. Developing real estate
• D. Providing financial planning advice

Correct answer: C

Explanation

The correct answer is C, as subsidiaries of banks are generally restricted from engaging in real estate development due to regulatory limitations. Options A, B, and D are permissible business activities for a bank subsidiary, allowing them to sell securities, insurance, and provide financial planning advice.