# Prudential grandfather clause

- Canonical URL: https://www.gerhardmerk.de/prudential-grandfather-clause
- Post ID: 594418
- Modified: 2023-07-25T21:12:26+00:00
- Language: en

## Definition

A possible exception, especially in U.S. law. In principle, it permits the continuation for some time of activities that have since been reorganized or even prohibited by the supervisory authority (temporarily authorizes the continuation of a now forbidden activity), provided that such activities had been entered into before the issuance of the supervisory order (to the extent such activities had been entered into before this new piece of regulation). The main purpose of the exemption is to - slowly modify and gradually (gradually) restructure contractual relationships between an institution and the customer, and - avoid sudden market changes that could trigger domino effects in certain cases. - See Bestandskraft, Herd behavior. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1