Exemption from definition of “broker” for banks accepting orders to effect transactions in securities from or on behalf of custody accounts.

CFR · 2024-01-01 · US · Title 12

(a) (1) (2) (i) Advertise that the bank accepts orders for securities transactions for employee benefit plan accounts or individual retirement accounts or similar accounts, except as part of advertising the other custodial or safekeeping services the bank provides to these accounts; or (ii) Advertise that such accounts are securities brokerage accounts or that the bank's safekeeping and custody services substitute for a securities brokerage account; and (3) (b) (1) (2) (3) (i) Whether the bank accepted the order for the transaction; or (ii) The quantity or price of the securities to be bought or sold; (4) (5) (i) Does not state that the bank accepts orders for securities transactions for the account except as part of describing the other custodial or safekeeping services the bank provides to the account; and (ii) Does not describe the securities order-taking services provided to the account more prominently than the other aspects of the custody or safekeeping services provided by the bank to the account; and (6) (i) Publishing, using or disseminating advertisements and sales literature in accordance with paragraphs (b)(4) and (b)(5) of this section; and (ii) Responding to customer inquiries regarding the bank's safekeeping and custody services by providing: (A) Advertisements or sales literature consistent with the provisions of paragraphs (b)(4) and (b)(5) of this section describing the safekeeping, custody and related services that the bank offers; (B) A prospectus prepared

official document · source cfr-2024 · id 12:§ 218.760