Securities Lawyer's Deskbook                          published by The University of Cincinnati College of Law

Rule 17i-8 -- Notification Provisions for Supervised Investment Bank Holding Companies

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1. A supervised investment bank holding company shall send notice promptly (but within 24 hours), in accordance with paragraph (c) of this Rule, after the occurrence of the following events:



1. The occurrence of any backtesting exception, determined in accordance with Rule 15c3-1e(d)(1)(iii) or (iv), that would require that the supervised investment bank holding company use a higher multiplication factor in the calculation of its allowances for market or credit risk;



2. The early warning indications of low capital as the Commission may agree;



3. A material affiliate declares bankruptcy or otherwise becomes insolvent;



4. The supervised investment bank holding company becomes aware that a nationally recognized statistical rating organization has determined to reduce materially its assessment of the creditworthiness of a material affiliate or the credit rating(s) assigned to one or more outstanding short or long-term obligations of an material affiliate;



5. The supervised investment bank holding company files a Form 8-K (§ 249.308) with the Commission;



6. The supervised investment bank holding company becomes aware that any financial regulatory agency or self-regulatory organization has taken significant enforcement or regulatory action against a material affiliate; or



7. The supervised investment bank holding company becomes ineligible to be supervised by the Commission as a supervised investment bank holding company.



2. [Editor's note: no paragraph (b) published]



3. Every notice required to be given or transmitted pursuant to this Rule shall be given or transmitted by telegraphic notice or facsimile transmission to the Division of Market Regulation, Office of Financial Responsibility at the principal office of the Commission in Washington, DC. The notices filed under this Rule shall be accorded confidential treatment to the extent permitted by law.



4. Upon the written request of the supervised investment bank holding company, or on its own motion, the Commission may conditionally or unconditionally grant or deny an extension of time or an exemption from any of the requirements of this Rule 17i-8 to the extent that such exemption or extension of time is necessary or appropriate in the public interest or for the protection of investors.

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