New regulation to define the scope of securities activities that banks may conduct without registering with the Securities Exchange Commission as a securities broker and to implement the most important exceptions from the definition of the term broker for banks under section 3(a)(4) of the Securities Exchange Act of 1934

Regulation implements statutory exceptions that allow a bank, subject to certain conditions, to continue to conduct securities transactions for its customers as part of the bank's trust and fiduciary, custodial, and deposit "sweep" functions and to refer customers to a securities broker-dealer pursuant to a networking arrangement with the broker-dealer

Press release

12 CFR 218.781 (exceptions for banks from definition of broker) became effective 10/3/2007.  The rest of Part 218 becomes effective 12/3/2007.

Proposed Regulation

12 CFR Part 218 - Regulation R

Proposed rules divide pie among bankers, brokers 3.12.07

Reg R: The Bank Broker Rules  1.02.07