Financial Services Holding Company Act of 1988

Financial Services Holding Company Act of 1988 - Defines a certified financial services holding company (CFSHC) as any company that: (1) has been certified in accordance with the provisions of this Act; (2) owns a bank holding company; (3) engages, through subsidiaries that are separate from its bank holding subsidiaries, in specified "financially-related" activities; (4) does not engage in activities other than managing, controlling, or providing services to its subsidiary bank holding companies or its subsidiaries engaged in "financially-related" activities; (5) insulates its banks in accordance with the provisions of the Federal Reserve Act; and (6) is not controlled by another company (unless that company is primarily engaged in financial services outside of the United States or engaged solely in managing, controlling, or providing services for a certified financial holding company within the United States).

Establishes procedures for the certification of financial services holding companies. Requires any company seeking such certification to submit a notice to the Federal Reserve Board. States that certification shall become effective within 30 days following the receipt of the notice by the Board, unless: (1) certification is denied; or (2) the approval period is extended an additional 30 days.

States that certification may be denied if the company: (1) engages in activities which are not "financially-related"; or (2) is controlled by another company (with specified exceptions).

Requires any CFSHC seeking to establish or acquire an additional bank holding company to follow specified procedures of the Bank Holding Company Act of 1956 and the National Housing Act. Allows the Board to disapprove a proposal for such acquisition if the proposed acquisition or new activity would cause the CFSHC to fail to meet the activity limitations of this Act.

Allows the Board to establish: (1) periodic reporting requirements; and (2) penalties for violations of this Act. Establishes procedures for the judicial review of Board actions.

Makes conforming amendments to the Bank Holding Company Act of 1956.

Amends the Banking Act of 1933 to exempt CFSHCs from specified prohibitions regarding securities.

Amends the National Bank Act to permit national banks to offer portfolio investment services. Allows national banks to engage in the following activities: (1) insurance agency or brokerage; (2) real estate brokerage and related services; (3) home ownership and financial counseling; (4) tax return preparation and tax planning; (5) armored car services; (6) check guaranty and collection services; (7) credit bureau services; and (8) operating a travel agency. Designates the Federal Reserve Board as the appropriate Federal regulator of a bank service corporation which engages in such activities. Preempts inconsistent State laws.

Amends the Bank Service Corporation Act to authorize an FDIC-insured bank to invest up to three percent of its assets in a bank service corporation. Raises a bank's aggregate permissible investment in bank service corporations to 15 percent.

Allows any bank service corporation to engage in any activity which: (1) is authorized by the Board; or (2) is newly authorized under the Financial Services Holding Company Act.

Subjects bank service corporations to: (1) Federal Reserve Board Authority; and (2) antitrust standards.

States that the mandatory sharing provisions of the Bank Service Corporation Act only apply to service corporations which provide services to nonshareholders.

Amends the National Housing Act to provide that a CFSHC shall not be considered to be a savings and loan holding company (except for the purposes of acquiring a savings and loan).