RIC Exemption for U.S. Banks, Bank-Funds and Insurance Companies (ICA Section 3(c)(3))

Overview

For a comprehensive list of exemptions and exclusions from registration available to investment companies, see the topic page Exemptions from Registration under the Investment Company Act. ICA Section 3(c)(3) excepts from the definition of investment company (i) any "bank" and various bank-like entities, including savings and loans, building and loan associations, cooperative banks, homestead associations, and any such entity in liquidation, and (ii) any company organized as an insurance company that has as its primary and predominant business activity the writing of insurance and is subject to supervision by an appropriate state authority. In addition, the exclusion covers certain common trust funds maintained by banks.​ The ICA definition of "bank" and the other bank-like entities is limited to those that are "supervised and examined by [a] State or Federal authority"; likewise, the definition of "insurance company" is limited to entities supervised by a State. (The SEC has by the adoption of ICA Rule 3a-6 provided an investment company exemption to non-U.S. banks and insurance companies; see the topic page on Foreign Banks and Insurance Companies.)

While ICA Rule 3a-5 provides an exemption for finance subsidiaries to foreign banks and insurance companies (see the topic page on Finance Subsidiaries), the Rule does not by its terms provide an automatic exemption for finance subsidiaries of U.S. banks and insurance companies that rely on ICA Section 3(c)(3). However, a number of the Federal Registers below provide examples of individual exemptions that the SEC has granted to such finance subsidiaries.

For a comprehensive list of exemptions and exclusions from registration available to investment companies, see the topic page on Exemptions from Registration under the Investment Company Act.

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