Grandfathering

Grandfathering

Glossary
Banking

Grandfathering

The notion of grandfathering refers to a legal situation where certain parties can continue to operate under an existing set of laws or statutes in the event a new set of statutes come into effect. New parties coming into the purview of the new statutes will have to abide by them, creating a two-tier system. Grandfathering can have limitations, restrictions or time limits.

Related terms