12 CFR 218.775 - Exemption from the definition of “broker” for banks effecting certain excepted or exempted transactions in investment company securities.
(a) A bank that meets the conditions for an exception or exemption from the definition of the term “broker” except for the condition insection 3(a)(4)(C)(i) of the Act (15 U.S.C. 78c(a)(4)(C)(i)), is exempt from such condition to the extent that it effects a transaction in a covered security, if:
(1) Any such security is neither traded on a national securities exchange nor through the facilities of a national securities association or an interdealer quotation system;
(2) The security is distributed by a registered broker or dealer, or the sales charge is no more than the amount permissible for a security sold by a registered broker or dealer pursuant to any applicable rules adopted pursuant tosection 22(b)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a-22(b)(1)) by a securities association registered under section 15A of the Act (15 U.S.C. 78o-3); and
(ii) Directly with a transfer agent or with an insurance company or separateaccount that is excluded from the definition of transfer agent in Section 3(a)(25) of the Act.
(i) Any security issued by an open-end company, as defined bysection 5(a)(1) of the Investment Company Act (15 U.S.C. 80a-5(a)(1)), that is registered under that Act; and
(ii) Any variable insurance contract funded by a separate account, as defined bysection 2(a)(37) of the Investment Company Act (15 U.S.C. 80a-2(a)(37)), that is registered under that Act.
(2) Interdealer quotation system has the same meaning as in 17 CFR 240.15c2-11.
(3) Insurance company has the same meaning as in 15 U.S.C. 77b(a)(13).
Title 12 published on 2015-01-01.
No entries appear in the Federal Register after this date, for 12 CFR Part 218.