Financial Holding Company (FHC) Law and Legal Definition
A Financial Holding Company (FHC) is a financial institution engaged in banking related activities offering customers a wide range of financial services. For example, purchasing insurance products, and investment in securities. The Bank Holding Company Act of 1956 prohibited affiliations between banks and insurance companies. These restrictions were removed by the Gramm-Leach-Bliley Act of 1999. FHC is created by the 1999 Act. A financial holding company can engage in activities of financial nature,which are incidental to financial activities. The Federal Reserve Board supervises the financial condition and activities of financial holding companies.
A bank holding company qualifies as a financial holding company when its banking subsidiaries are well capitalized and well managed. Such a company can file a certification with the Federal Reserve Board that the company qualifies as a financial holding and elect to become a Financial Holding Company. A non-bank commercial company engaged in financial activities and earning 85% or more of its gross revenues from financial services can choose to become a financial holding company.
Legal Definition list
- Financial Holding Company (FHC)
- Financial Hardship [Education]
- Financial Gain
- Financial Forecast
- Financial Engineering
- Financial Industry Regulatory Authority (FINRA )
- Financial Information
- Financial Information Repository
- Financial Institution (Bankruptcy)
- Financial Institution [Securities]
- Financial Institutions Reform, Recovery, and Enforcement Act of 1989
Related Legal Terms
- Academy of Financial Divorce Practitioners
- Accompanying Relative [Immigration]
- Accompanying Spouse and Dependents
- Accompanying the Armed Forces outside the United States
- Accompanying the Federal Government Outside the United States
- Accompanying Visa
- Affiliate and Associated Company
- Affiliated Company (Gaming Law)
- Annual Statutory Financial Statement [Agriculture]
- Appropriate Federal Financial Supervisory Agency [Banks & Banking]
