[Federal Register Volume 60, Number 6 (Tuesday, January 10, 1995)]
[Notices]
[Pages 2601-2602]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-526]
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FEDERAL RESERVE SYSTEM
Union Bank of Switzerland, Zurich, Switzerland; Application to
engage in Investment Advisory Activities
Union Bank of Switzerland, Zurich, Switzerland (``Applicant''), has
applied pursuant to section 4(c)(8) of the Bank Holding Company Act (12
U.S.C. 1843(c)(8)) (``BHC Act'') and Sec. 225.23(a)(3) of the Board's
Regulation Y (12 C.F.R. 225.23(a)(3)), through UBS Asset Management
(New York) Inc., New York, New York (``Company''), to acquire
Timberland Resources, Inc., West Lebanon, New Hampshire, and to engage
in providing investment advisory services with respect to timberland
investments, including:
(1) Identifying and evaluating investment opportunities relating to
timber, forest resources and forest products, including reviewing and
evaluating economic factors affecting demand and prices for forest
products, the quality of timberland and forest product companies
available for investment, the inventory of trees, and prospects for
productive growth;
(2) Monitoring timber markets, including economic analysis of various
timber species and growing areas, analysis of pricing trends, and
identification of developing markets for timber and other forestry
products;
(3) Advising on the structuring of particular investment transactions
and the manner in which investment vehicles should be organized and
capitalized;
(4) Providing advice with respect to the acquisition and disposition of
particular investment properties, the financing of such properties, and
the terms of particular acquisitions, dispositions and financings;
(5) Identifying and recommending third-party providers of services,
such as foresters, tract managers, consultants, appraisers and
independent auditors;
(6) Evaluating strategic, capital and operating plans for particular
investments, including plans for planting, growing, cultivating,
cutting, insuring and harvesting of particular properties in light of
relevant economic projections, and advising with respect to such
matters;
(7) Monitoring the performance of individual properties, including
overseeing periodic valuations and appraisals of particular properties;
and
(8) Providing investment reports to investors.Company's customers would
include investment partnerships that exclusively invest in timber and
forest resources. The proposed services would be provided throughout
the world.
Section 4(c)(8) of the BHC Act provides that a bank holding company
may, with Board approval, engage in any activity which the Board, after
due notice and opportunity for hearing, has determined (by order or
regulation) to be so closely related to banking or managing or
controlling banks as to be a proper incident thereto. This statutory
test requires that two separate tests be met for an activity to be
permissible for a bank holding company. First, the Board must determine
that the activity is, as a general matter, closely related to banking.
Second, the Board must find in a particular case that the performance
of the activity by the applicant bank holding company may reasonably be
expected to produce public benefits that outweigh possible adverse
effects.
Applicant maintains that the Board previously has determined that
the proposed investment advisory services are closely related to
banking. See 12 CFR 225.25 (b)(4)(iii) & (iv); Southeast Banking
Corporation, 69 Federal Reserve Bulletin 564 (1983); Standard and
Chartered Bank PLC, 71 Federal Reserve Bulletin 470 (1985). Applicant
also maintains that consummation of this proposal would provide added
convenience to Applicant's customers, and would not decrease
competition or result in any other possible adverse effects.
In publishing the proposal for comment, the Board does not take a
[[Page 2602]] position on issues raised by the proposal. Notice of the
proposal is published solely to seek the views of interested persons on
the issues presented by the application and does not represent a
determination by the Board that the proposal meets, or is likely to
meet, the standards of the BHC Act.
Any comments or requests for hearing should be submitted in writing
and received by William W. Wiles, Secretary, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551, not later than January
24, 1995. Any request for a hearing on this application must, as
required by Sec. 262.3(e) of the Board's Rules of Procedure (12 CFR
262.3(e)), be accompanied by a statement of the reasons why a written
presentation would not suffice in lieu of a hearing, identifying
specifically any questions of fact that are in dispute, summarizing the
evidence that would be presented at a hearing, and indicating how the
party commenting would be aggrieved by approval of the proposal.
This application may be inspected at the offices of the Board of
Governors or the Federal Reserve Bank of New York.
Board of Governors of the Federal Reserve System, January 4,
1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-526 Filed 1-9-95; 8:45 am]
BILLING CODE 6210-01-F
