Financial entity engaged in a broad range of banking-related activities, created by the Gramm-Leach-Bliley Act of 1999. These activities include: insurance underwriting, securities dealing and underwriting, financial and investment advisory services, merchant banking, issuing or selling securitized interests in bank-eligible assets, and generally engaging in any nonbanking activity authorized by the Bank Holding Company Act. Financial holding companies are authorized to engage in activities that are "financial" in nature and "incidental" to financial activities. The Federal Reserve Board is responsible for supervising the financial condition and activities of financial holding companies.
Similarly, any non-bank commercial company that is "predominantly" engaged in financial activities, earning 85% or more of its gross revenues from financial services, may choose to become a financial holding company. These companies are required to sell any nonfinancial (commercial) businesses within 10 years.
