Securities powers
HRS §412:5-205.7
in effect412:5-205.7. Securities powers
(a) With the prior written approval of the commissioner, and subject to the limitations set forth in this section and to any conditions the commissioner may impose, any bank organized under the laws of the State, at the discretion of its board of directors, either directly in any department or division of the bank or through a subsidiary or affiliate of the bank, may engage in the following securities activities and in any related or incidental activity, within the State:
(1) Sale or purchase of any security on the order of
and for the account of customers, either alone or in conjunction with the
rendering of investment advice to customers, through the operations,
respectively, of a discount or full service brokerage;
(2) Organization, sponsorship, operation, control,
and distribution of one or more investment companies, as defined in section 3
of the Investment Company Act of 1940 (15 U.S.C. 80a-3) or in the laws of the
jurisdiction in which the investment company operates;
(3) Provision of portfolio advice to customers;
(4) Provision of investment and financial advice to
government agencies; and
(5) Service as dealer-manager or financial advisor to
corporations, partnerships, or other persons, including but not limited to the
provision of valuation advice and opinions with respect to sales or purchases
of assets, corporate restructurings, issuances of securities, mergers, and
other acquisitions.
The exercise of authority conferred in this
subsection shall be governed by and comply with chapter 485A and any securities
administrative rules adopted under chapter 485A. Administration of chapter
[485A] and any securities administrative rules shall be vested with the
commissioner of securities.
(b) With the prior written approval of the
commissioner, and subject to the limitations set forth in this section and to
any conditions the commissioner may impose, any bank organized under the laws
of the State, at the discretion of its board of directors, either directly in
any department or division of the bank or through a subsidiary or affiliate
thereof, may engage in the following securities activities and in any related
or incidental activities, in any place outside this State, including any other state
of the United States, dependencies or insular possession of the United States,
or any foreign countries:
(1) Sale or purchase of any security, as defined
under applicable law, on the order of and for the account of customers, either
alone or in conjunction with the rendering of investment advice to customers,
through the operations, respectively, of a discount or full service brokerage;
(2) Organization, sponsorship, operation, control,
and distribution of one or more investment companies, as defined in section 3
of the Investment Company Act of 1940 (15 U.S.C. 80a-3) or as otherwise defined
under applicable law;
(3) Provision of portfolio advice to customers;
(4) Provision of investment and financial advice to
government agencies; and
(5) Service as dealer-manager or financial advisor to
corporations, partnerships, or other persons, including but not limited to, the
provision of valuation advice and opinions with respect to sales or purchases
of assets, corporate restructurings, issuances of securities, mergers, and
other acquisitions.
The exercise of authority conferred in this
subsection shall be governed by and comply with chapter 485A and any securities
rules adopted under chapter 485A or the laws and administrative rules of the
state, dependency, insular possession, or foreign country applicable to the
conduct of such securities activities within that jurisdiction.
(c) The bank shall file an application for
approval with the commissioner in a form prescribed by the commissioner and
accompanied by a fee assessed pursuant to section 412:2-105.2. The application
shall contain:
(1) A description of the activities to be conducted;
(2) The experience and qualifications of the proposed
managers;
(3) The specific location where the activities will
be conducted; and
(4) Any other information that the commissioner may
require.
If the bank proposes to engage in securities
activities through a subsidiary or affiliate, then the application shall also
contain information regarding the experience and qualifications of the proposed
executive officers and directors of the subsidiary or affiliate and the
ownership, amount, and nature of the bank's investment in and advances to the
subsidiary or affiliate. Upon being satisfied that the application is
complete, that the conduct of the securities activities will not affect the
safety or soundness of the bank or harm the public interest, and that the bank
and its subsidiary or affiliate, if applicable, have sufficient experience,
qualifications, and financial capability to engage in the activities authorized
by this section, the commissioner shall approve the application. The
commissioner may impose any terms and conditions that the commissioner
considers necessary to protect the bank, the customers of the bank, and the
public interest.
(d) Upon receipt of the commissioner's
approval under this section, the bank or its subsidiary or affiliate shall
obtain any necessary approvals required under chapter 485A and any securities
administrative rules adopted under chapter 485A, or the applicable securities
and banking laws of the jurisdiction in which it will be conducting its
securities activities.
(e) The provisions of this section are in
addition to and not in limitation of any other provision of this chapter. The
powers granted by this section may be exercised notwithstanding any other
provision of this chapter. Furthermore, the commissioner may adopt rules
governing the exercise of powers granted by this section as the commissioner
finds necessary to avoid unsound banking practices, to ensure the safety and
soundness of the bank, and to protect the public interest.
[L 1996, c 225, pt
of §1; am L 2006, c 229, §7; am L 2013, c 172, §22]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: https://www.capitol.hawaii.gov/hrscurrent/Vol08_Ch0401-0429/HRS0412/HRS_0412-0005-0205_0007.htmFetched: 11/10/2026