WASHINGTON — With more than 120 comment letters received, the Securities and Exchange Commission recently said it's ready to move forward on approving a regulation that will extend broker-dealer exemptions to banks by July 2.

At issue is the former Regulation B proposed in spring 2004, now titled Regulation R, which allowed credit unions to enter into the same networking arrangements with broker-dealers that banks can, sweep deposit accounts into no-load money market funds under the same terms as banks and to buy and sell securities for investment purposes for themselves, or for accounts for which they act as trustee or fiduciary.

The Financial Services Regulatory Relief Act of 2006 enacted in late 2006 required the SEC to work with the Fed to jointly issue another proposal to clarify these exceptions. This provision of Reg Relief extended these exceptions to thrifts, but not to credit unions.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.