Defined terms relating to the sweep accounts exception from the definition of “broker.”

CFR · 2024-01-01 · US · Title 12

For purposes of section 3(a)(4)(B)(v) of the Act (15 U.S.C. 78c(a)(4)(B)(v)), the following terms shall have the meaning provided: (a) (b) (c)(1) (i) That class or series is not subject to a sales load or a deferred sales load; and (ii) Total charges against net assets of that class or series of the investment company's securities for sales or sales promotion expenses, for personal service, or for the maintenance of shareholder accounts do not exceed 0.25 of 1% of average net assets annually. (2) For purposes of this definition, charges for the following will not be considered charges against net assets of a class or series of an investment company's securities for sales or sales promotion expenses, for personal service, or for the maintenance of shareholder accounts: (i) Providing transfer agent or sub-transfer agent services for beneficial owners of investment company shares; (ii) Aggregating and processing purchase and redemption orders for investment company shares; (iii) Providing beneficial owners with account statements showing their purchases, sales, and positions in the investment company; (iv) Processing dividend payments for the investment company; (v) Providing sub-accounting services to the investment company for shares held beneficially; (vi) Forwarding communications from the investment company to the beneficial owners, including proxies, shareholder reports, dividend and tax notices, and updated prospectuses; or (vii) Receiving, tabulating, and transmitting pr

official document · source cfr-2024 · id 12:§ 218.740